NFTs vs. Houses

GM, we take the latest Web3 news and translate it into plain old English - so you can stay up to date, without your eyes glazing over.

In today’s edition:

  • Forget your house, you can now take a loan out against your NFT collection...

  • Wait, metaverse tourism is a thing?

  • RESOURCE: Tokenomics, explained.

  • ICYMI: Highlights from last week's Bitcoin 2022 Conference in Miami

Forget your house, you can now take a loan out against your NFT collection...

So it turns out there's a growing market for loans that use high value NFTs as collateral.

Which is kind of wild when you think about it...

The fact that some lenders are putting the same trust in NFTs that they would in real estate?

That's a big milestone in legitimizing the space.

This lending is mainly being provided to those with highly valuable NFT collections, who are short on cash and don't want to sell off any of their existing collection in order to fund new purchases.

For example, pseudonymous Twitter user '0x650d' recently announced they'd taken a short term loan of $8.32 million USD for 90 days, using their existing collection as collateral.

What 0x650d will probably do next:

  • Use that loan to buy a bunch of promising new NFTs.

  • Wait a month or two while they grow in value.

  • Sell some (but not all) of their new NFTs at a profit.

  • Pay back their loan and get their original collection back.

This is the same basic strategy that real estate investors have been using to grow their property portfolios for decades.

The big difference with NFTs is: everything moves faster.

Instead of waiting years to realize profits, investors can lock in returns in a matter of weeks.

...anyone else kicking themselves for not getting a Bored Ape at launch?

READ MORE

Wait, metaverse tourism is a thing?

What's happening:

Owners of historical sites (like castles, palaces & museums) are starting to recreate their properties in the metaverse.

The goal being to encourage virtual tourism and generate much needed revenue to cover the hefty maintenance bills for their aging real world properties.

Those bills can be huge. So huge that this castle was sold for 1 Euro (essentially given away) and then the next 2 attempts to sell the same castle for 1 Euro failed to find a buyer.

Why this is cool:

Creating experiences within digitally recreated historic sites already sounds way more exciting than what is currently offered by most metaverse projects, like 'Facebook messenger, in 3D' and 'shopping at Walmart, in VR'...

It's yet to be confirmed how virtual tourism will be monetized; but, one idea is to run 'virtual tours' or potentially to create a DAO (see translation), allowing the members to vote on how maintenance funds should be spent.

The proof of concept:

Last year, ex-Google product manager, Michelle Choi, ran an NFT exhibition and auction at a real-life castle in Prague.

The launch saw NFTs displayed next to 500-year-old paintings and it raised enough money to cover the restoration of all urgent projects at the property.

All we know is that Web3 is providing new ways to fund important projects IRL.

Now, where's that 1 Euro castle deal?

READ MORE

Resource of the day

Tokenomics, explained.

(learn all you need in ~11:30)

CHECK IT OUT

ICYMI: Highlights from last week's Bitcoin 2022 Conference in Miami

North America's largest crypto conference took place last week and it'd feel weird not to report on it, so here are the highlights:

  • Legendary tech investor Cathie Wood backed her view that Bitcoin will go to $1 million per coin.

  • The digital payment platform 'Strike', are bringing Bitcoin payments to Shopify, CVS, Walmart, Chipotle, Wholefoods and others.

  • PayPal Founder Peter Thiel took aim at Warren Buffett for his criticism of Bitcoin, calling him a 'sociopathic grandpa'.

  • Shark Tank's Kevin O'Leary thinks Bitcoin mining will solve the earth's clean energy problem.

  • Bitcoin's #1 helicopter parent, Michael Saylor, says Biden has given the "green light" to Bitcoin.

READ MORE

 Your Daily Dose of Web3

Alright, that’s it for today!
Love to the family,

Chevy & Seb

Web3 Daily

Web3 and crypto news, translated into plain English.

https://web3daily.co/
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