Jun 6, 2021
How you can profit from utility NFTs like PolkaPets
Don’t let their looks deceive you, I made great profit investing in these PolkaPet NFTs
And…
Truth be told, I definitely had Ash’s mindset when it came to collecting these PolkaPets, but for reasons that may not appear obvious at first.
I’ve always been one for collecting. As a kid, I’d go around collecting kid’s “Doubles” (Duplicate trading cards) at school and make deals with other kids to amass one of the best card collections in the school, without ever buying a single pack, but that’s another story. This story details how I was able to use those same skills, for buying and flipping PolkaPets.
About PolkaPets:
“The World of PolkaPets goes beyond just collectible NFTs. Within the PolkaPets Universe, each PolkaPet is embodied as an artistic creature that represents a specific project within the PolkaDot ecosystem.
Each PolkaPet holds a unique utility that rewards community members for holding that specific PolkaPet NFT in their wallets. This could be a discount on fees, an airdrop of tokens to PolkaPet cardholders, and much more.”
- PolkaPets
My strategies:
Flipping —
Early on, I identified that these cards were selling from 3–6x their originally value on the secondary market via OpenSea, immediately after the primary sale on Bondly finished. Which is a lot! Because each PolkaPet is originally priced at 0.15 ETH (~$400 USD). So with an immediate 3x return (minimum) you’re looking at an $800 profit. Not bad for an hour’s work on a Thursday morning.
This strategy was heavily reliant on my ability to execute my Ethereum transactions as fast as possible. I’d buy as many PolkaPets as I could, and then flip them immediately after. This strategy became less effective when the max number of PolkaPets you could purchase per transaction was capped at 2, which then lead me to pivot into my next strategy.
Accumulation —
I was already doing this to some degree with my previous strategy, but once the cap was implemented, I leant on this strategy more heavily. The goal of this strategy was to accumulate as many different PolkaPets as I could, with a focus on retaining those in my collection that granted me access to token airdrops.
How profitable are some of the airdrops?
I can’t comment on the profitability of the airdrops I’ve received, because I haven’t received any yet, but owners of the Kylin PolkaPet were set to receive 500 Kylin tokens. At Kylin’s all time high, this airdrop would have been valued at $1,000 USD. Not bad.
Why did I invest in these PolkaPets?
I invested in these PolkaPet NFTs for 4 reasons.
- The utility— Primarily, I invested in these NFTs to get access to airdrops of partner tokens.
- The flip — Secondarily, I invested in these NFTs because I identified how much profit you could earn, buying them from the primary market and selling them straight after the close of that market via the secondary market.
- The nostalgia —This type of investing took me back to my original roots, trading and flipping cards in the playground.
- The game— Lastly, I invested in these NFTs for the interactive gaming side of things. These NFTs are going to be utilised in a future PolkaPets game, where there will be play-to-earn quests etc.
➡️ Feel free to follow me on my other socials for interesting crypto projects I’m investing into and to stay up to date on my strategies: linktr.ee/Chad2P0 🐦📸🎧📝
Disclaimer: This blog post was inspired by my own opinions, observations and experiences. I am not a licensed financial advisor and this is not financial advice. You should not buy, sell, or invest in any asset based on what I say. You should know that investing carries extreme risks. You could lose your entire investment. This is not trading advice and I am in no way liable for any losses incurred. Always do your own research.
