Doggy Style

Please note that this blog is called "Out Of The Money" which has a double meaning:

  1. I like buying Out-Of-The-Money call options as they provide the most possible upside per unit of risk, and
  2. You'll lose all your money if you follow anything I say in this entire blog.

The below is for entertainment purposes only.

So there's this guy named Gary Vaynerchuk who's this entrepreneur and has millions of followers and just says the same things over and over again:

  • Empathy is good
  • Be patient
  • Don't care about what other people think of you
  • Have self-awareness
  • Happiness > Money

There, I just saved you hours and hours of watching the same TikToks and Instagram stories from this guy. But while I deeply and truly believe in his values – fuck his values, the real question to ask is: "How can this guy make me some money?"

In late April he began alluding to an NFT project he's doing. Because there's an NFT bubble, and more generally, a cryptocurrency bubble as of this writing, I really wanted to buy one of them and flip it. I thought his NFTs can be flipped for an enormous sum due to the following factors:

  1. He has more followers than Beepl, whose secondary market got very rich off his art.
  2. His audience are entrepreneurs, and they have money to buy NFTs that are way overpriced. I mean, entrepreneurs have money...right?
  3. He's alluded to 'exclusive access' to him with his NFTs and so I think he'll execute it in such a unique way to give it way more value.

So I bought 6 ETH ($22,000) at the time, because he mentioned he'll do a dutch auction where everything starts at 3 ETH and it'll count down to 0.5 ETH – so as long as I click the 'buy now' button for 2 NFTs, I have a very decent chance of flipping it for some real change.

But then later he increased the price and said that some are starting at 10 ETH, which means my chances of getting a very good NFT is starting to look dimmer. Whatever though, maybe I can still scalp some cheap ones.

Come 5/5/21, nothing happened. His project was delayed. Tens of thousands of people all across the world was waiting for him to release it on May 5th and a lot of people in different timezones were staying up til the AM's to wait for his next announcement.

His next announcement: more delays!

By 5/7/21, Friday, I was bored. I had all this ETH sitting in my Metamask and I heard about a coin called "SHIB" on TikTok a few weeks earlier. So I decided, 'Eh if his premium coins are gonna be 10ETH, I probably won't be able to afford it so I need to settle for the 3ETH coins. Might as well gamble. But which coin? I'm too late to DOGE...so maybe SHIB?'

So I threw 1 ETH into SHIB (.000003 USD) that night and didn't think much of it (by which I mean I checked every 5 minutes).

Woke up the next day, May 8th, 2021 and it had almost 6X'd at .000017 USD. It occurred to me that Elon Musk was going to show up at SNL and so the coin probably exploded because of it.

I figured I should probably be ahead of the market and sell 1 hour before the SNL show. But I didn't listen to my gut because that was the high before it plunged to around .000010? where I paper hands the trade and only got a 4X return.

Of course, a day later it went up to .00003 and I hate myself for it.

This self-hatred – mostly fueled by greed got – me thinking: if one Doggy coin can give me massive returns and a lot of unhealthy FOMO, maybe I should just buy into a bunch of other Doggy coins and repeat this process!

So I did. I reinvested my profits from SNL into SHIB, AKITA, KISHU, and pretty much any dog you can find in a Japanese kennel.

Lost half my profits.

That's not really the worst part though, because even if I lose half my profits I still have more than 6 ETH to buy GaryVee's stuff. He finally released his NFTs and instead of 10 ETH for his highest coins like he previously stated, you can have the pleasure of paying 80 ETH to play poker with him for 4 hours, split into 2 years! Those poker blinds better be 1/2 ETH (I asked what the blinds would be on the poker game on his Discord and was ignored)!

...Or you can pay 3 ETH to talk to him on facetime for 15 minutes...split across 3 years!

Wow! Incredible...ly overpriced!

I ended up not investing in the NFT project because while the execution seems really good, it's very hard to flip for the following reasons:

  1. All these tokens expire within 3 years. You can go to VeeCon for 3 years, and enjoy the unique experience once a year, for up to 3 years. This means unlike a Beepl .jpg, this has no long-term value and is an asset that expires (and therefore ought to depreciate). You can't hold the NFT and ride out market cycles and re-sell it later at a much, much higher price. After 3 years of his NFTs, instead of a .jpg done by a professional digital artist with decades of experience, you'll just end up with a .jpg that seems like it's drawn by a retarded kid. If the experiences was redeemable once a year, every year, until he dies, I would gladly jump on these coins and pay a lot for it – because most of the value is in future value where I can re-sell it after 5 years when I've had enough of the experiences.
  2. People only bought at rock-bottom prices, and things were overpriced. The dutch auction starts at a very high price, say, 80 ETH, which at the time was about $320,000. Across 15 hours, the 80 ETH drops to 10 to 15 ETH. At any time, anyone can click 'Buy Now' and secure the NFT. This means that at whatever price you buy the NFT at, it's at the highest and worst price possible. It's the highest price because if someone was willing to pay more for it, you wouldn't be able to buy the token. And it's the worst price because it expires and therefore should not appreciate.

For example, the following NFT allows you to shadow Gary Vee for 10 hours, once a year, for 2 years:

0.22 ETH offer

But in the secondary market, there's pretty much no offers except for a 0.22 ETH offer. The guy bought this for 17.821 ETH.

So for those 2 reasons above (expiry on a token ownership and self-defeating pricing), I'm out.

But hey, if Gary never launched this NFT project I would have never gotten some (albeit marginal) gains from the doggies.

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