DOODLES <> CROCS ??

1. ABOUT NFTs

This week saw a major collaboration between an NFT project called @doodles and a major brand we all know, @Crocs. A lot of people focused on lack of "price action" and no movement in Floor Price.

A bit of background on that. NFTs by definition are digital assets that are distributed through a process we call a "mint" to a community that would like to be part of a specific ecosystem and/or project. This raw definition does not fully depict what NFTs are but serves to argument the illiquid nature of those assets. Those assets are not meant to the day traded, swing traded or even accumulated. They hold NO intrinsic value when it comes to ownership in the project whatsoever.

Imagine an NFT as an access card to an ecosystem in which you are an exclusive customer, management would arbitrarily decide to reward you upon certain achievements the project completes.

NFTs however can create something really interesting, i.e "Brand loyalty" and major brands will soon leverage that. Recently @LVMH has been dropping refillable perfumes, whereby you would refill the bottle you buy instead of buying a new one. Why did they do that? Although the price drops seems appealing, LVMH are more focused on "loyalty"; and they will subsequently realize NFTs can help achieve that as well.

It is inevitable that most brands around the world will be using "digital assets" to connect customers to their brand, creating tier 1 loyalty and initiating a collective organic marketing scheme that helps them expand further internationally.

Coming back to Floor Price, how does it work? Simply put, a group of people initially buys NFTs [The mint]; another group would need to buy from the first group to maintain this Demand/supply equilibrium and therefore maintain a minimum purchase price for this NFT called "A Floor Price". But if a few individuals decide to list their NFTs for sale below that price, and there is no one to buy, the price will veer lower.

Point of this explanation is NFTs can help create certain dynamics such as brand loyalty, collective marketing schemes and entertaining experiences; but will NOT necessarily reflect the future value of a present collaboration, activation or partnership any project does.

In stocks, we look at price multiples to extract a price for a specific publicly traded stock. Some have tried to put frameworks for this but look at NVIDIA right now? Would you have bought NVIDIA had you just looked at Multiples? Definitely not because you would have assumed it is overbought. Although stocks are not NFTs and no asset is similar, there is this constant urge to frame valuations. Beware of that.

Will be sharing a post on how to benefit most from NFTs and leverage each major NFT out there.

2. THE DOODLES COLLAB

Doodles raised 54 Million Dollars In Venture capital funding to build an entertainment brand. They dropped several collabs and now this. This @Crocs collab is interesting for 2 main reasons:

?? The paradigm shift: Lifestyle brands collaborating with Web3 brands is the start of the journey towards transforming brands full on to Web3 ones. This paradigm shift is definitely happening and brands will all be building a digital asset / community based ecosystem moving forward. This said, the current collaboration does not give any added value to current holders of the Doodles NFT and floor price will not reflect future returns and potential impact, and this is why no one felt the need to go and actually purchase a Doodles.

?? The End of an Era: Prior to what we called the bear market, news of collaborations was being leveraged as a justification to speculate and trade leading to a pump in floor price. A project would drop an announcement that has no material impact on the value of tokens in circulation, yet floor price would go up significantly led by speculators, ultimately creating a pump and dump scenario. in faciem this would be called creating utility, but in reality, as @frankdegods highlighted in his recent podcast with @marccolcer, the concept of utility was used and abused often times leading to an excessive conjecture ultimately resulting in dumps further down the road.

3. SUMMARY

To summarize this, NFTs are digital assets that give you access to an ecosystem you connect with,

？Will you make direct returns by purchasing NFTs? At times and in specific circumstances, you could.

？Will you make indirect returns including but not limited to:

→ Connections you cannot build easily in IRL

→ Getting entertained through "activations", products and other cool experiences,

→ Satisfying an urge to collect similar to postal stamps.

Yes, you would.

The Doodles collab is a leap forward, marks the end of an era, and sets the stage for a new phase. A more scattered Web3 where different ecosystems evolve in parallel and not necessarily connected through Web3 @X

Lastly, the culture will remain, the vibe was unmatched during the early days and those who were there will relate.

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