Hey there 👋,

In this week’s newsletter, I discuss:

• A newsletter arbitrage play

• Not getting left holding an NFT bag

• Waiting for an entry on ENS domains

But first up a poll.

In this high inflation, rising interest rate, recessionary environment…

Proof of Implosion

It continues to be a terrible time to hold NFTs with floor prices of almost all collections dropping:

I’ve sold all NFTs that I don’t consider core assets (long-term holds and ones I’m using to market projects, such as Lazy Domains), including a Checks-VV Edition today.

The Fed is expected to continue to raise rates at their meeting today, despite the banking turmoil which has boosted crypto prices - this increase will likely continue to hurt NFT floor prices.

But if the Fed does not raise rates or is overly dovish, then the price of ETH will likely continue on its run, and NFT floor prices can get whacked that way too.

Really does feel like a lose-lose situation for NFTs right now, especially Proof assets:

I published what’s been happening to Proof last week here:

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Waiting on .ETH Renewals

The price of Ethereum Name Service (ENS) domains have also been dropping. The floor of the 10K club (i.e. 4 digit .eth domains 0000-9999) is now 0.75ETH vs over 3ETH six months ago:

And I think we are going to see a much more dramatic reduction next month as renewals hit the market for the first time.

The 10K club was created (minted out) at the end of April of last year as you can see in the expiry dates of the floor names here:

And if we look up one of those names above 4166.eth on ENS.domains you can see that they cost 0.089ETH ($160) to renew for a year which is 11% of its price.

I think a lot of people will choose not to pay the renewal and look to floor their names at lower prices. Or will simply forget to renew.

I’ll be watching the price action to look for a good entry.

🔍 Community Spotlight

I recently connected with Danny V who is super knowledgeable in the world of wealth building and personal finance. His newsletter Wealth² is a goldmine of information:

Ok, that’s it from me, until next week, be well and share this newsletter to get my referral rewards:

Cheers!

Richard Patey - @richardpatey