• The startup, what do you look out for to succeed?

• Why do so few startups get external funding?

• How to improve the odds?

• How to be persistent even though I have not secured funding after trying for a long time?

Starting a business is a journey, and it's essential to be persistent and adaptable to increase the chances of success.

It's often said that the journey is more important than the destination, which can undoubtedly be true in the world of startups. At the same time, it's essential to have long-term goals and work towards also important to focus on the present and enjoy building, rebuilding, and to grow a business. Personal growth: Starting a business can be a learning experience, and the journey of building a startup can lead to personal growth and development.

Building relationships: The journey of starting a business can also be an opportunity to build relationships with employees, customers, and other stakeholders. Flexibility: Focusing on the journey rather than the endgame makes it easier to be flexible and adapt to changing circumstances. Enjoyment: Finally, it's important to find enjoyment and fulfillment in building a business, rather than solely focusing on the end result. Overall, it's essential to keep a balance and focus on the journey and the endgame to achieve success.

Starting a business from scratch can be a challenging but rewarding process. Here are a few steps you can take to turn your idea into a successful startup:

1. Please validate your idea: It's important to make sure that your idea is viable and has the potential to solve a real problem or meet a genuine need in the market. This may involve conducting market research and gathering feedback from potential customers.

2. Develop a business plan: A solid business plan is essential for any startup. It should outline your target market, marketing and sales strategies, financial projections, and any other key details about your business.

3. Secure funding: Depending on the scale of your startup, you may need to secure funding in order to get off the ground. This may involve seeking investment from venture capital firms, angel investors, or other sources.

4. Assemble a team: Building a strong team of talented and passionate individuals can be crucial to the success of your startup.

5. Launch and iterate: Once your startup is up and running, it's important to continuously iterate and improve based on customer feedback and market demand.

There are many reasons why startups may need help to secure external funding. Some common causes include:

1. Lack of a proven track record: Investors are more likely to fund a startup if it has a proven track record of success.

2. Lack of a unique value proposition: Investors want to see that a startup has a unique value proposition that sets it apart from competitors.

3. Lack of a clear business plan: A solid business plan is necessary to convince investors that a startup is a good investment.

4. Poor financials: Investors will want to see strong financials, including a healthy balance sheet and cash flow statement.

5. Competition for funding: There is often a lot of competition for funding, especially in popular industries or areas with a high concentration of startups.

6. Weak management team: Investors want to see that a startup has a strong management team with the necessary skills and experience to grow the business.

7. Lack of investor interest: There may be insufficient investor interest in the startup to secure funding.

How to improve the odds?

There are a few things that startups can do to improve their chances of securing funding:

1. Build a strong team: As mentioned, investors want to see that a startup has a strong management team with the necessary skills and experience.

2. Develop a unique value proposition: A unique value proposition sets a startup apart from competitors and can be a key factor in attracting investors.

3. Create a solid business plan: A well-written business plan is essential for convincing investors that a startup is a good investment.

4. Demonstrate traction: Investors are more likely to fund a startup that has already achieved some level of success, such as by acquiring customers or generating revenue.

5. Network and get introductions: Building relationships with potential investors and getting introductions through mutual contacts can improve a startup's chances of securing funding.

6. Consider alternative funding sources: Startups should also consider alternative funding sources, such as grants, accelerators, or crowdfunding platforms.

7. Be persistent: Securing funding can be a long and challenging process, and it may take multiple attempts before a startup is successful. It's important to be persistent and keep trying.

How to be persistent even though I haven't secured funding in a long time?

It can be not easy to stay motivated and persistent when a startup has been trying to secure funding for a long time without success. Here are a few tips for maintaining persistence:

1. Stay focused on your long-term goals: It's important to stay focused on the long-term vision for your startup and not get discouraged by short-term setbacks.

2. Seek feedback and reassess your approach: If you have been trying to secure funding for a long time without success, it may be helpful to seek feedback from potential investors and reassess your approach. This can help you identify areas for improvement and increase your chances of success.

3. Keep networking and building relationships: Networking and relationships with potential investors can help increase your chances of securing funding.

4. Consider alternative funding sources: There are many different funding sources available to startups, including grants, accelerators, and crowdfunding platforms. Consider considering these alternative options.

5. Stay resilient: Finally, it's important to stay resilient and not give up, even when the going gets tough. Many successful startups have faced numerous setbacks before eventually achieving success.

And statistically, how many startups get funding?

It is challenging to provide a precise statistic for the percentage of startups that can secure funding, as it can vary greatly depending on various factors such as industry, location, and the stage of the company. However, it is generally accepted that most startups still need external funding. According to data from the National Venture Capital Association, only about 1% of startups pitch to venture capital firms successfully secure funding. This figure does not include startups that seek funding from other sources such as angel investors, banks, or crowdfunding platforms.

I understand that it can be discouraging to hear that most startups still need external funding. However, it's important to remember that there are many different paths to success for startups, and external funding is just one of many potential sources of support. Many successful startups have been able to grow and thrive without external funding by bootstrapping or seeking alternative sources of funding. It's also worth noting that the process of seeking funding can be a valuable learning experience, even if it ultimately does not result in a successful funding round. I am the same; over time, some team members will leave, and even co-founders will opt to leave the team. New people that love the project will come in, don't get discouraged and keep moving forward.

Any other reasons that startups fail

There are many reasons why startups may fail. Some common reasons include:

1. Lack of a viable product or service: A startup's product or service must solve a real problem or meet a genuine need in order to be successful.

2. Poor market fit: Even if a startup has a great product, it may fail if there is not a sufficient demand for it in the market.

3. Need for more funding: As mentioned earlier, many startups need help to secure the funding they need to get off the ground and scale.

4. Lack of a solid business model: A startup needs to have a clear and viable plan for generating revenue and profits in order to be successful.

5. Ineffective marketing: A startup also needs to be able to effectively reach and communicate with its target market in order to be successful.

6. Competition: There is often intense competition in the startup world, and startups may need help to differentiate themselves and stand out from competitors.

7. Poor management: Finally, a startup's success or failure can often hinge on the leadership and management of the company. Management can lead to a lack of focus and direction, which can ultimately spell failure for the startup.

What happens if you're really persistent and still haven't made it yet

If a startup has been persistent and has yet to be successful, it may be helpful to take a step back and reassess the situation. Here are a few things to consider:

1. Is the product or service still relevant and meeting a genuine need in the market? If not, it may be necessary to pivot to a new direction.

2. Have the market conditions changed? It may be necessary to adapt to changing market conditions in order to be successful.

3. Is the business model still viable? It may be necessary to revisit the business model and make adjustments in order to make the startup more sustainable.

4. Are there other sources of funding or support that could be pursued? It may be worth considering alternative sources of funding or support, such as grants, accelerators, or crowdfunding platforms.

5. Is the management team still the right fit? It may be necessary to bring in new talent or make changes to the management team in order to bring fresh perspectives and ideas.

Ultimately, the key is to be flexible and open to change in order to increase the chances of success. It's important to remember that the path to success for a startup is often long and winding, and there will inevitably be setbacks and challenges along the way.

Being bootstrapped is difficult, but I believe in faith. And maximum effort.

Bootstrapping a startup can certainly be challenging, but it can also be a rewarding experience. By relying on internal resources and funding, startups can maintain control over their own destiny and not have to answer to outside investors. It's essential to have faith in your vision and to put in maximum effort to increase the chances of success. Some tips for bootstrapping a startup include:

1. Start small: It's often easier to get a small business and scale up as it grows.

2. Be frugal: It's important to be mindful of expenses and to only spend money on what is absolutely necessary.

3. Seek out free or low-cost resources: There are many free or low-cost resources available to startups, such as open source software, free marketing tools, and free or discounted services from vendors.

4. Consider alternative sources of funding: While traditional funding sources may not be an option, there are many alternative sources of funding that startups can consider, such as grants, accelerators, or crowdfunding platforms.

5. Leverage your network: Building relationships and leveraging your personal and professional network can help a startup get off the ground and find resources and support.

6. Stay focused and persistent: Finally, it's important to stay focused on your goals and to be persistent in the face of challenges.

Storytelling and startups?

Storytelling can be an important tool for startups in a number of ways. Here are a few ways that storytelling can benefit startups:

1. Communicating the vision: A compelling story can help a startup clearly and effectively communicate its vision and mission to stakeholders such as employees, customers, and investors.

2. Differentiating the brand: A strong brand story can help a startup stand out from competitors and establish its unique identity.

3. Building relationships: Storytelling can be an effective way to build relationships with customers and create a sense of emotional connection.

4. Persuading and convincing: A well-told story can be a powerful tool for persuading and convincing others, such as when seeking funding or partnerships.

5. Inspiring and motivating: Finally, storytelling can be a powerful way to inspire and motivate employees, customers, and other stakeholders.

Overall, storytelling can be a valuable tool for startups looking to communicate and connect with their audience effectively.

Next time, I will speak in detail about how I sold my first baby startup for USD300k, after failing other ventures times before. And how to make the perfect pitch deck to get more funding.

Thank you. I look forward to hearing your own insights and comments

Cheers,

Eric F

If you want to get in touch about interesting NFT ideas or projects or want to hear about a specific topic, I'm @ericclfung on Twitter.

Thanks to @gg & @Wacko & @CISBROS & @All-ETH for reviewing this post.

Disclaimer: I am just an NFT dreamer & builder who had some success in this crypto and NFT space. The above does not constitute an offer or solicitation to offer or recommend any investment product.

https://twitter.com/EricCLFung/status/1610227292533555200?s=20

• NFT Ticketing: tickets in the form of an NFT living on a blockchain that act as access passes for any live or virtual event.

• Issuers/organizers can keep a more in-depth record of attendance numbers by utilizing the blockchain as a ledger while simultaneously interacting with ticket holders in a new and innovative way via NFTs.

• NFT Ticks can act as storytelling or secret easter eggs

• Issuers can send out notices, host surprise giveaways, create token-gated sites and services, and more simply by collating data associated with holders of a specific NFT ticket.

Similarly, NFT ticket holders don't simply receive a ticket to an event but an immutable and often interactive digital asset granting them entry into a show or festival. These tickets also give holders access to exclusive experiences, including fan clubs made up only of holders of similar NFT tickets. Considering the lack of exposure to NFTs and software wallets at the time, it is challenging to implement this thoroughly in events worldwide.

Imagine a parallel between PFP NFTs and NFT tickets. PFPs come in varying degrees of rarity; they act as member passes to a variety of communities, they communicate an NFT collector's special status, and they can accrue value over time. Yet, PFPs are explicitly geared towards crypto and NFT enthusiasts and often come with the caveat of their association with financial gain/loss and price speculation.

So imagine a PFP gives you access to their partner's VIP parties or events that one hasn't even heard of or RSVP. So many PFP collection is trying to create fun and utility for their NFT project.

NFT tickets, on the other hand, are a new extension of an existing and robust network of concerts, festivals, conferences, and other live events. Imagine tickets to a metaverse of in-person events, where offers abound: for example, a PFP-like perk to holders added to the existing experience involving a musician, music festival, nightclub, etc.

Who is using NFT ticketing?

Blockchain-powered events gained notoriety in 2021 and 2022, but NFT ticketing, while less familiar as a concept, has been around for years. And if we look at NFT history, the will to create tokenized experiences has persisted despite cases where the technology and know-how hadn't reached maturity.

In 2018, superstar producer/DJ and blockchain music pioneer 3LAU set out to help lay the groundwork for blockchain-powered events with his single-day concert, Our Music Festival. However, the festival itself didn't implement NFT ticketing for attendees — which likely would've been difficult anyways, considering the lack of exposure to NFTs and software wallets at the time. So 3LAU and Co. created a tokenized experience that allowed festival goers to accrue tokens that could be reimplemented for real-world purchases while at the event.

Startups

Originally, NFT ticketing began with startups. In 2020, NFTs hadn't achieved the popularity they inevitably did by the end of the following year. Yet developers were already delving into potential music industry use cases for the novel technology.

Early on, two primary value propositions were set forth for NFTs. The first was that they could potentially provide a more robust and verifiable form of identity to link with tickets, effectively reducing scalping and bot activity. Secondly, NFTs could create a direct channel for attendees to remarket and maintain community engagement after an event (as mentioned in the previous section).

Festivals

Coachella is potentially the most notable of these more localized efforts. With Coachella Collectible NFTs, AEG Worldwide presented a novel case for NFTs use cases as both memorabilia (aka POAP) and lifetime passes.

Although the Coachella collection received mixed reviews, it opened the door for others, like Las Vegas' Afterparty and Swedish music festival Way Out West, to launch their NFT tickets.

Problems that NFT ticketing solves

NFT Ticketing is on track to entirely disrupt the ticketing industry because it solves many problems that organizers currently face. For example, a paper-based ticket may be lost, ruined due to water, and destroyed. Moreover, organizers do not get enough security with paper-based tickets because they can be easily forged. QR codes solve this challenge for organizers, but they're not that effective for guests purchasing them.

Lost revenue from resale and scalping

The secondary ticket market is a hot mess. Resellers can dramatically increase prices, and scalpers buy up to 50% of tickets online to resell.

NFT Ticketing limits resale value, fees, and control over secondary ticket sales. With royalties from every sale, organizers would get a cut from the scalper sales. Organizers probably encourage scalpers to make more secondary sales. This will opens the doors to an additional $15 billion market for ticket sellers.

Lack of data on sales and exchanges

Event organizers face a massive lack of data and attribution when selling tickets, mainly when scalpers resell them.

NFT Ticketing allows all ticket transactions to be tracked on blockchain technology, making it much easier to identify when and where tickets are sold and who bought them. The issue is whether the NFT Ticket resold would need to be KYC.

Ticket fraud

One of the major concerns for guests is whether they have paid for an authentic ticket or a fake one. Sometimes, customers may be misled into buying counterfeit tickets on websites posing as legitimate authorized ticketing agents.

NFT Ticketing solves ticket fraud by having all transactions available on blockchain ledgers, making it impossible to sell fake tickets.

Ticket production

Physical and digital Ticketing requires production and digital ticket creation, which can often be a technological challenge. However, NFT Ticketing is much faster and more efficient than traditional or digital ticketing solutions.

Although NFT ticketing already faces problems with gas fees. Tickets are looking for a stable, fast, and cost-effective chain. New technology like the GET, polygon, and NEAR blockchains are solving these problems.

NFT Ticket Sharing

Some festivals and events last a few days. When an attendee can not make it to the entire event, that NFT ticket can be resold to the attendee's friends or even transferred for a better experience, adding more flexibility and transferability.

POAP - Proof of Attendance Protocol

Although NFT tickets have yet to bridge the gap over the "mainstream" NFT ecosystem, similar projects exist at the innovative intersection between live events and NFTs. One such service is the Proof of Attendance Protocol (POAP) — a protocol that creates digital badges or collectibles through blockchain technology.

Even Adidas and popular NFT projects such as Deadfellaz and 0n1Force use the POAP.

Although NFT tickets have yet to bridge the gap over the "mainstream" NFT ecosystem, similar projects exist at the innovative intersection between live events and NFTs. One such service is the Proof of Attendance Protocol (POAP, pronounced "poh-ap") — a protocol that creates digital badges or collectibles through blockchain technology.

POAPs have been around for years, enabling event coordinators to reward enthusiasts for attending festivals, conferences, summits, and more. Associated primarily with blockchain-powered events like Devcon and other various Ethereum and Bitcoin events, POAPs took on a new life in 2021 as the NFT ecosystem ballooned.

POAPs quickly became a means to reward event attendees and Twitter Space participants, NFT drops Discord events, and much more. Furthermore, these POAPs started to gain utility as status symbols, incentivizing holders to trade them on OpenSea to receive perks down the line potentially.

Artists

Beyond large-scale efforts, independent musicians and artists are also finding ways to implement NFT ticketing into their tours and shows. NFTs are quickly becoming a primary music industry sector, with many artists launching NFT and blockchain endeavors to bolster their fanbases during COVID. Increasingly, NFT tickets seem an inevitable part of the burgeoning music NFT ecosystem.

While this type of system mirrors those used in major festivals, it exists on a much smaller and more personable level. Because of this, these drops are increasing in frequency and popularity, leading other artists like The Cool Kids, Steve Aoki, and more to offer free entry into their concerts for those who own their NFTs.

Future of NFT Ticketing

To date, numerous artists and developers have used POAPs to whitelist holders for subsequent drops, with Gmoney's Admit One collection becoming one of the most prominent. As POAPs gain more utility, they're even becoming a backward-compatible prerequisite for attendees of earlier events to acquire NFT tickets for future ones.

Although the music industry has undoubtedly begun to accept the idea of NFTs, whether as collectibles, a method of crowdfunding, or lifetime festival passes, the vast majority of music enthusiasts have not been onboarded into the NFT space. In other words, most show-lovers still don't have an NFT wallet, pushing NFT tickets out of the equation for many organizers.

Of course, some digitally native communities, like those surrounding 3LAU, Steve Aoki, BT, and more, are more aware and accepting of NFT ticketing. But to others (especially general music lovers), NFT ticketing doesn't lend enough advantages over downloading a conventional PDF ticket via mobile devices.

The Companies that are leading the NFT Ticketing

There is no doubt that NFT ticketing is the future for ticketing companies. Innovators like these five companies are racing to tackle the problems of the ticketing industry. As a result, the adoption of NFT ticketing is already growing fast. Mark Cuban is even working on bringing NFT ticketing to the NBA. As a result, the NFT ticketing industry is expected to disrupt online event ticketing, reaching 60 billion by 2026.

NFT Ticketing is quickly taking over the ticketing industry. These five companies are taking the ticketing industry by storm with innovation.

GUTS – over 600k tickets sold WICKET – ticketed Milano wine festival NFT TiX – growing US-based NFT ticketing platform Seatlab – upcoming NFT ticketing marketplace YellowHeart - NFT tickets for the music industry

I am in no way affiliated with the companies mentioned above. However, I know they are disputing the concerts/events space with their NFT ticket tech.

Conclusion

NFT has been driving radical changes across various industries, including Ticketing. Live events space is one of the industries that could be disrupted by NFTs completely. However, it is an industry that ticketing companies and concert promoters should keep an eye on for potential opportunities and emerging tech to make live events better than before. NFTs for Ticketing bring transparency to the ticketing platform and assure the secondary buyer that they are getting a valid ticket.

Thank you. I look forward to hearing your own insights and comments

Cheers,

Eric F

If you want to get in touch about interesting NFT ideas or projects or want to hear about a specific topic, I'm @ericclfung on Twitter.

Thanks to @gg & @Wacko & @CISBROS & @All-ETH for reviewing this post.

Disclaimer: I am just an NFT dreamer & builder who had some success in this crypto and NFT space. The above does not constitute an offer or solicitation to offer or recommend any investment product.

https://twitter.com/EricCLFung/status/1568803555703947266?s=20&t=w7QSEd2QhfsY4-BNoP_jSA

The Internet of the 1990s and early 2000s was a utopian vision: a global network of interconnected computers would be available to everyone worldwide. In the beginning, there were only static websites that displayed information. This is Web1. Users were not just passive receivers of content but also active participants in building the web itself. Users absorbed content from the web and actively contributed to blogs and other content-sharing sites. However, the content never really belonged to the user because most websites were owned by large corporations that made their money from advertising and selling user data. This is Web2. Then came NFTs and blockchain, where the data and info belong to the user, not the corporations. This is Web3. The original vision of Web3 was based on decentralization, user ownership, and blockchain technology.

Decentralization

Decentralization refers to a system in which no single entity is in control. For example, decentralization as a feature of blockchain technology means that no single data center or network of computers stores the entire database. Instead, every node in the network has access to all recorded transactions; therefore, everyone can verify any transaction made on the network. Although there have been many attempts to define Web3, there is no consensus on its meaning because the term embodies such diverse concepts. I have, however, concluded that digital user ownership is of the greatest significance to users.

This technology refers specifically to an algorithm that allows data to be shared without compromising privacy by providing reliable cryptographic tools for authentication purposes, enabling trustless transactions. Decentralization means no single entity controls the computer network, including companies, governments, and individuals. The removal of central authority is a key feature of blockchain technology. It is demonstrated in many ways. For example, peer-to-peer (P2P) networks use decentralization as their primary method to distribute resources and decentralized autonomous organizations (DAOs), OR self-governed bodies. Both mechanisms operate without reliance on major corporations like Google and Amazon.

Digital User Ownership

Every day users can connect Web3 to IoT. The Internet of Things (IoT) refers to all objects connected via networked devices for communication purposes - This includes everything from refrigerators and washing machines, phones and computers, televisions and DVD players, automobiles, and even buildings! These networked devices have different programs for different functions, and these functions can be user-generated, shared, or owned by an individual. Thus, digital ownership incentives users to improve IoT device programming and functionality.

Blockchain Technology

Blockchain technology is perhaps one of the most important topics of discussion in the field. It refers specifically to an algorithm that allows data to be shared without compromising privacy (thus enabling trustless transactions) by providing reliable cryptographic tools for authentication purposes.

Trustless and Permissionless interaction

Trustless: You don't have to trust anyone to use Web3. No gatekeepers, intermediaries, centralized servers, or banks will refuse to process any transaction or government that can freeze your assets.
Permissionless interaction: You can interact with any piece of content or other people without needing their permission in advance. So, nothing will restrict your access to any part of the information or any software. (supposedly, unless they had in a front-end protocol, you probably need that permission, but blockchain-wise, all interaction should be permissionless.

However, more than just being about decentralizing things like a monetary exchange or maintaining integrity among autonomous agents without any central authority (like Bitcoin and Ethereum), Web3 has much broader implications. For instance, decentralized web applications allow people to interact without needing a middleman's involvement.

At a high level, the core ideal behind Web3 is that it's an open-source web that any person or organization doesn't control. The idea is that anyone can access and contribute to this decentralized web, and a community of users will govern it. This means no censorship from governments or companies - and no single point of failure if something goes wrong with your internet provider. Smart contracts are a type of program that executes automatically; developers write them with the intent of running on top of a distributed trustless network. The name comes from their ability to self-execute when certain conditions are met, much like traditional legal contracts. Blockchain is the most secure and reliable way to store data and make transactions. As a result, many experts see blockchain as a new technological revolution with the potential to change society as we know it. Metaverse can be one of the many new marvels that utilize the blockchain to run a smooth and free world.

Many people do not understand the value of non-governed Internet very well, nor do they want to spend much time thinking about why some sites suddenly disappear for no reason. Even Twitter / Zoom / Tik Tok has complied with government requests to shut down many user accounts. (These websites, accounts, and data never belonged to the user but belonged to the corporations. And the corporations must comply with the laws that they are located in) 

Web3 is a phenomenon that uses blockchain technology and smart contracts to enable decentralization, giving users control over their data. A decentralized web or Web3 would be safer for everyone, especially those who are vulnerable to marginalization and disenfranchisement. In the future, Web3 will be a network that gives users more control over their digital lives. This includes everything from finances to data storage and identity management. The best part about all of this? It's already starting to happen!

Thank you. I look forward to hearing your own insights and comments

Cheers,

Eric F

If you want to get in touch about interesting NFT ideas or projects or want to hear about a specific topic, I'm @ericclfung on Twitter.

Thanks to @gg & @DemiCrow & @CISBROS & @All-ETH for reviewing this post.

Disclaimer: I am just an NFT dreamer who has some success in this crypto and NFT space. The above does not constitute an offer or solicitation to offer or recommend any investment product.

https://twitter.com/EricCLFung/status/1558165983088750592?s=20&t=VUp_dwziClweiY0qs_Iliw

• The merit of the founder/team

• The excellence of the idea/product

• The hype or traction

These are my thoughts on working in a web3 startup.

Like all startups, A startup is a company typically in the early stages of its development. These entrepreneurial ventures are initialed by 1-3 founders who focus on capitalizing upon a perceived market demand by developing a viable product, service, or platform- the textbook version.

My version of a startup is a brand new company with a great idea that needs constant compromise with the team / other founders and the potential to be able to sit beside Mr. Wonderful on Shark Tank once we make it.

These are my thoughts and struggles on a startup and how VCs (venture capitalists) look at them:

Fierce Competition

The corporate world is quite fierce. There is always a competition going on between the giants. Competition poses one of the biggest challenges for the survival of startup businesses. And if you have an online business startup, the competition gets more challenging.

However, in the web3 space, with everyone dropping out or slowing down due to the market conditions, it is more advantageous to start now. When the market is good, you are competing with ten other startups with a similar idea, and now, since you are continuing to build, when times are great again, things will be ready and ready to tackle the whole market. Still, it comes with many other challenges, including staying motivated and money management.

The competitive environment keeps the startups on their toes, as no margin of error is available. It doesn't matter if the Web3 startup is aiming at B2C or B2B; to survive in this competitive environment and horrendous market conditions that covers both traditional and online businesses, the startups need to play/build aggressively and pivot directions when needed.

Unrealistic Expectations

Success does not come alone. It brings expectations with it. Most of the time, these expectations seem realistic. However, to VCs or users, they don't seem so. This same concept holds for young startup founders.

"I work a corporate job full time (it pays for my mortgage and allows me to support my family), but I work on a startup during my off time, pretty much full time to fulfill my dream. I failed in 2 previous startups and was semi-successful in one, as I understand the challenges and expectations of managing the Team and finances."

Startups face challenges when they set 'unrealistic expectations' following a booming success. Remember, success is short-lived, and expectations never end; where startups need to translate what the real expectations are. Sustainability is the name of the game. And sustainability requires consistent efforts. To succeed in a competitive business world, startups need to have high but controlled expectations, keeping a view of the resources available, the extent of growth potential, and other market factors.

When we launched WOLF3 (https://www.wolf3.io), our social media and discord buzzed with overwhelming interest and gained many interested parties. Ever since the crypto bear market, we did lose many VC commitments, and some collaborations didn't pan out, but that isn't stopping or slowing us down. We will continue to build with the available resources we have, and we thank you for others still believing in WOLF3 and for the financial support and backing we have received so far.

Team

The Team to make the startup's vision is essential.

One of the most critical factors that define organizational culture within a startup company is the Team's synergy. A team comprises individuals with comparable capabilities and identical focus. To develop a highly successful team culture, organizations in general.

There is a considerable pool of aspiring individuals available. However, a peculiarly tricky task is selecting a suitable candidate that fits the job well enough. It is one of the biggest challenges facing startup businesses in this digital age. However, this runs into an issue when the founders ask the team members (who could be close friends) to work for free. While it was okay in the beginning when it was an extended amount of time, there were no excellent funding options, resulting in internal team conflicts and meeting deadline issues.

Partnerships

Partnerships are the essence of success. And this logic holds for startups as well. But unfortunately, in this ever-expanding and ever-changing digital era, where organizations need to battle hard for their survival, startups also find it challenging to find trustworthy collaborations or long-term partners. First of all, either the startup is too small or doesn't have enough traction, and the more prominent corporations have no interest in partnering with such a small web3 startup.

The most sustainable way is to find other startups with similar merit, exchange ideas and technology with each other, and then grow till the web3 startup can stand next to the big corporations. Going into a partnership pays great dividends for the startups. Still, they must consider various factors before collaborating with another company in the same ecosystem. It's a big challenge for startups today, not just Web3 startups. However, with that said, the web3 space is quite extraordinary because many people are willing to help each other even though they may have never met in real life.

I’m lucky to be included in many wonderful web3 communities such as HEADDAO and 8DAO and other NFT PFP projects like Deadfellaz and 0n1force; these wonderful people there have helped me connect with many others.

Financial Management

Money begets money. The end goal is to fulfill the founder's dream and make a profit. Therefore, one must spend the startup money smart to make it profitably. When income increases, the expenditures also increase. There is no doubt about it. One of the biggest challenges that startups face today relates to financial management.

The biggest question is, how much would the founders spend on a startup without VC funding? Is every founder as motivated to get the project going? Is every founder putting in the same amount of work/effort/resources on the startup?

It is a fact that small startups rely heavily on financial backups from the so-called VCs or investors. But how do startups get these financial backings? It's called pitching and aggressively calling.

Whether there is a cash influx from investors or not, startups tend to find it challenging to manage their finances and bog down against the pressure correctly.

To address this kind of situation, with my knowledge, startups need to play a safe and cautious hand but also tackle their projects/markets aggressively. Financial help from a reputed institution firm or money from family and friends may help manage financial crises facing today's startup businesses. However, it does increase the number of stakeholders; sometimes, priorities can change. So taking on too many or too little financial or even no investor has its pros and cons.

Cyber Security

This is the digital age. Web3 is the start of a new frontier, but it does come with many unknown security risks. Project owners/startups need to be super agile to counter the so-called online security threats. Hackers are everywhere, and they will take advantage of any loophole within the systems installed within a startup firm.

The rate of cyber crimes has increased dramatically during the past couple of months, and the amount of money stolen in de-fi and NFTs are staggering. And the percentage of hacks is going to increase.

To safeguard the all-important online data, startups need to have robust and military-grade security systems in place. All smart contracts involved with the Web3 startup should be audited by 3rd parties, such as “Certik” and “Hacken”.

Community = Customers / Users

The customer is the king. Winning a customer's trust is one of the most critical challenges that businesses in general – and startups in particular – face today. With a satisfied and loyal customer base, startups can scale and progress towards excellence. In web3, we usually the customers = the community.

The community is the real force behind a startup's success. Their word-of-mouth power and their presence on social media can give tech startups an edge against all the traditional businesses. This includes Web3 startups. To win customers' trust and loyalty, web3 startups need to work aggressively to implement a user-centric working philosophy to attain the height of sustainable growth and progress they desire to achieve in this tech-savvy and challenging business world.

Community is the Key to Sustainability

It is a fact that there is no single-stop solution to surmounting challenges. There is no magic wand that can help you solve challenges, both project deliverables, and funding overnight. To meet and tackle the so-called challenges of a violent business world, startups need to be resilient and focus on keeping their integrity intact against all odds.

Let's keep building. WAGMI.

Thank you. I look forward to hearing your insights and comments

Cheers,

Eric F

If you want to get in touch about interesting NFT ideas or projects or want to hear about a specific topic, I'm @ericclfung on Twitter.

Thanks to @LiMeRiC & @Sumairkandhari & @CISBROS & @fichus0512 & @LReingee for reviewing this post.

Disclaimer: I am just an NFT dreamer who has some success in this crypto and NFT space. The above does not constitute an offer or solicitation to offer or recommend any investment product.

https://twitter.com/EricCLFung/status/1554371165166391296?s=20&t=8KYr8YIq1jQF30qjNhDwDw

All excellent questions.

Suppose there are infinite metaverses but a finite number of ways to design them (pixel art - Minecraft-like / 3D unreal engine) in any respective platform. In that case, the users that make up the community will most likely shape that Metaverse look and feel, hence the

With that said, each Metaverse will have its unique flavour/style shaped by the users participating in that community.

Essentially the Multiverse is a combination of different Metaverses. It will only work well when different Metaverse platforms work together to bring them all together via portals or devices that can transport one from one Metaverse to the next.

TechCrunch states that we're currently in the multiverse era of technology, where "the virtual worlds of games expand to become mainstream hubs for social interaction and entertainment."

"Multiverse virtual worlds will function almost like new countries in our society, countries that exist in cyberspace rather than physical locations but have complex economic and political systems that interact with the physical world."

Social media platforms, online games, and massive multiplayer online games are simply an extension and can be integrated into the Multiverse.

The Metaverse, on the other hand, is a shared, persistent digital environment where users can work, play sports, go to concerts, watch movies, shop, or hang out with friends.

There have been raving reviews of individuals around the world regarding the Multiverse, and many are excited about transitioning everyday activities to the Metaverse, especially when it comes to connecting with people, exploring virtual worlds, and collaborating with remote colleagues. Unsurprisingly, the more a user is active in the Metaverse, the more likely they will purchase within it. What's exciting is that the Metaverse, like the internet, is the next platform on which ones can work, live, connect, and collaborate. That's why NFT technology and Metaverses, Web3, compared with the supposedly now web2.

It will be an immersive virtual environment connecting different worlds and communities. There will be creators and alternative currencies you can buy and sell things. It will have a lot of Web3, gaming, and AR components, but it will be much more extensive in scale and adoption.

At its most basic core, Metaverses consist of a sense of immersion, real-time interactivity, and user agency. Consumers and companies are experimenting with the early Like any new technology, the Metaverse is neither inherently good nor bad. There are use cases for everything from socializing to fitness, commerce, virtual learning, and other daily activities. It will be what we make it, and we can learn from previous eras of dramatic technological change.

The Metaverse is early and new, meaning there's a lot of creative freedom in how it evolves. There are little or no government regulations at the moment. However, many skepticisms and challenges like data privacy, cybersecurity, and child protection would need to be addressed. Many diverse sets of use cases across industries. The complexity and excitement of the technology that underpins the Metaverse is a whole source of renewal for innovation.

How big could this Multiverse / Metaverse opportunity be?

If you are a business owner, you should be open-minded about potential Metaverse applications for your business. Have a long-term mindset. The space is constantly evolving. It would be best if you were not planning for 2022 but planning for sustainability in the long term.

Metaverse represents a potential $8-13 trillion opportunity by 2030., with five billion users." - predicted by Citibank & Goldman Sachs

I feel it is a good idea for companies and executives to dip explore into the Metaverse and experience to understand better what it entails. There is no avoiding the fact that if you want to understand consumers and opportunities that may be available to your organization, you need to be familiar with the Metaverse. As a result, more prominent corporations are putting their digital footprints into the Metaverse. The best way and most economical way for business leaders to explore is by becoming metaverse users.

Thank you. I look forward to hearing your own insights and comments

Cheers,

Eric F

If you want to get in touch about interesting NFT ideas or projects or want to hear about a specific topic, I'm @ericclfung on Twitter.

Thanks to @LiMeRiC & @Rocketman1988 & @CISBROS & @fichus0512 for reviewing this post.

Disclaimer: I am just an NFT dreamer who has some success in this crypto and NFT space. The above does not constitute an offer or solicitation to offer or recommend any investment product.

https://twitter.com/EricCLFung/status/1541998835245150211?s=20&t=w-VeO6hAqJUdsxQM0ifpAg

With the recent catalysts, Terra Luna collapsed and celsius network liquidity issues. In addition, a few black swan events are cooking up right now, with Michael Saylor MicroStrategy's $20k BTC margin call, rumors on Three Arrow Capital facing possible insolvency, and Justin Sun's USDD stable coin risk of de-pegging. More and more FUD on USDT imenient collaspe. The Ethereum Ropsten testnet merged its proof-of-work execution layer with the Beacon Chain proof-of-stake consensus chain, but there were bugs there that needed to be fixed, hence the announcement that the Merge may be delayed.

Considering NFTs, trading volume is at an all-time low, with the US Federal Reserve's stance on decreasing the money supply (increasing interest rate) and with the world going into recession.

Ethereum and Bitcoin and the whole crypto market don't look great (short-term anyway).

But I'm going to tell you my view from a retail investor perspective on the upcoming Ethereum Merge. The Ethereum Merge or ETH 2.0 s no longer bringing excitement. Instead, there are worries about how it will bring down the market even more.

In an interview with the Bankless podcast, leading Ethereum developer, Tim Beiko pushed the Merge back between August and November. "I'm just not as convinced that targeting more than a rough target, date-wise, is possible," he said. "However, I think for it not to happen this year, you'd need a catastrophic event, failure, or series of normal bugs." There's a lot going on with Ethereum, and if you're an investor, this is what you should know.

Misconceptions

There are many misconceptions or misunderstandings of what the Merge will do. The Merge will not:

1. Reduce gas fees (reducing transaction costs) The Merge is an upgrade to the consensus layer. It swaps proof of work consensus for proof of stake consensus. This will reduce energy use, but this change won't affect gas costs. Cheaper execution layers already exist, though (Arbitrum, Optimism, etc.)

2. Allow you to withdraw your staked ETH

3. Be delivered on time

Previously known as Ethereum 2.0 or Serenity, the Merge upgrade is now on the cusp of making it to the launching on the mainnet The first step towards the Merge occurred in December 2020 with the launch of the Beacon chain, which has been operating independently of the Proof-of-Work (PoW in the following) Ethereum main chain. A one-way bridge accepts deposits so you can stake Ethereum's native currency, with just over 5.5 billion ETH staked on the Beacon chain across more than 340,000 validators. However, that staked ETH cannot be unstaked until after the full Ethereum Mainnet has been merged.

The Merge will, however:

1. Reduce issuance rates of Ethereum tokens

2. Have zero emissions for nine months after the Merge, thus reducing sell pressure ( after that, then POS finally unlocks)

3. Have a triple halving, another saying that the Merge will have the same effect as 3 Bitcoin halving events. In other words, the reduction in Ethereum's supply upon a successful Merge will be like four years in Bitcoin time.

   That's the good news.

Bad News

1. A horrible Terra Luna incident occurred in the crypto space. Lido Staked Ether (stETH), a token from the Lido protocol that is supposed to be 100% pegged by Ethereum, is losing its peg, and Celcius halted withdrawals.

2. Currently, Lido staked Ethereum is off its peg by 3-6%, meaning that sell pressure is growing. The message is crystal clear: Some whales and institutions have lost faith in the Merge, derisking themselves. So more and more retail investors are selling their crypto and NFTs.

Unlike the Terra Luna situation, staked Ethereum is guaranteed by smart contracts, meaning every stETH is redeemable 1:1 by ETH that is currently locked. This means that the Lido problem is not a backing issue, as in the Terra Luna situation, but a liquidity issue. Hence Celcuisus Network halted withdrawals.

This situation could get ugly because many whales, including the Celsius Network, got into leveraged positions to take advantage of stETH yields. Meaning that stETH being worth less than ETH can cause a short-term crisis where whales are forced to sell, further messing up the peg, and creating a downward spiral.

In other words, the Crypto lending platform Celsius is highly leveraged. And that amount of risk may mess with the price of Ethereum and the solvency of their own company.

"If customers start withdrawing from Celsius, they will have to sell their stETH," Bitcoin investor and independent analyst Brad Mills explained. "Celsius has liabilities of 1 million ETH. So, 288k are inaccessible until [the] Merge, ~30K are lost, ~445k are stETH, and 268k are liquid. Could cause a run." Celsius may Go Under There are about $1.5 billion of positions staked in Ethereum in the Celsius Network. To remain solvent, they've already started borrowing stablecoins against their position. However, if the price of Ethereum continues to fall and Celsius is forced to sell, it could trigger a domino effect that could severely tank the market and make it into a death spiral.

What makes all of this more interesting is that Celsius put a target on their back when they led the charge to sell Terra Luna/UST a few weeks back. And that led to further collapse. So, ironically, this could be payback or karma.

Keep in mind all of this could be an internet conspiracy FUD; however, Celsius is in a very precarious position. All this halting of withdrawals and more internet FUD finding out in small print Celsius will not be responsible for any financial losses are worrying.

With that side, one staked ETH (stETH) is by smart contract; it is redeemable for one ETH, so the peg will most certainly be re-pegged in the future, but that doesn't mean there will be an enormous sell pressure on ETH in the short term, hence dropping the price further. So there is a big arbitrage opportunity here.

Positivity about the Merge There are three main reasons for Ethereum's shift to PoS: Energy efficiency Security Decentralization The triple halving narrative: following the Merge, the issuance of ETH will be reduced by 90%, equivalent to three block reward halvings (or 12 years) for Bitcoin. Since PoW will be deprecated, miners will no longer be natural sellers, which significantly reduces selling pressure for ETH.

As well as the reduction in issuance, the Merge will also transform ETH into a productive commodity (making it more similar to equity paying dividends) since holders can generate a return from staking. Furthermore, as more ETH is being staked, the available supply on the market will be reduced, which should, in theory, positively impact the price.

In conclusion, the Merge will be a considerable undertaking that significantly changes how Ethereum operates and will see ETH transition from a digital commodity to a yield-bearing asset, likely to spark renewed institutional interest in Ethereum. While there's a lot on the line, the potential benefits to scalability are expected to outweigh the risks involved.

As a result, the upgrade will not alleviate gas prices by itself, but the Merge does pave the way for Danksharding, which will address the scalability issue.

Ethereum is Bleeding More than ever, even with Utility and EIP1599 Burn

NFT's pricing is dropping, causing mass panic and more selling to NFTs, leading to more ETH being dumped onto the market. Increase supply, prices drop. DeFi and Ceci rewards are free-falling, and many hacks led to "trusting" the system. Ethereum's centralization concerns: As of September of last year, around 60% of Ethereum nodes were hosted in AWS or other cloud platforms as compared to Bitcoin's 40% And the Merge likely won't come in August. The Merge has been delayed for many months. (the missed deadline doesn't gel with many investors) And when the Merge does happen, the web3 community will realize the Merge would not fix the high gas fees.

Ultimately, Ethereum does have better long-term value and has much more utility, not including some silly JPEGs and NFT memberships, than Bitcoin.

When we get the Merge, Ethereum will be officially deflationary if there is a higher volume. As well as have a more sustainable consensus mechanism a la proof of stake. As a hobbyist miner, I like proof of work (POW), and it is an incentive to keep everything decentralized and secure. However, it is more challenging to purchase 32 ETH to become part of the proof of stake (POS) node than to leverage consumer hardware to become a POW validator. Hence, perhaps only big market players can become a POS node, making everything more centralized. Volatility and Crypto Blood Centralized exchanges, can freeze your withdrawals and swaps of a particular token, and this happened to me with UST (I was stuck on unstaking and selling of UST transactions for two days, and by that time, UST had fallen to 0.15 when I got out) Unrealistic returns like 20%+ fail during bear markets and should be avoided almost entirely.

There is no perfect hedge. During a recession, everything bleeds.

The crypto market is very young, and still no regulations as of yet. With that said, Ethereum is still my favourite long-term investment, but there's no doubt there is blood in the waters right now. I still have loads of Ethereum in my portfolio, and my miners are still mining Ethereum as I speak. If it does go lower, I will just dollar cost average invest into Bitcoin and Ethereum. To be transparent, I hold more in percentage in NFTs than crypto. What can I say? I'm a degen at heart.

WAMGI

Thank you. I look forward to hearing your own insights and comments.

Cheers,

Eric F

If you want to get in touch about interesting NFT ideas or projects or want to hear about a specific topic, I'm @ericclfung on Twitter.

Thanks to @LiMeRiC & @Rocketman1988 & @CISBROS & @fichus0512 for reviewing this post.

Disclaimer: I am just an NFT dreamer who has some success in this crypto and NFT space. The above does not constitute an offer or solicitation to offer or recommend any investment product.

https://twitter.com/EricCLFung/status/1537107851629703170?s=20&t=wmxkZIltbqV2e8qF49s6aQ

There are more and more different Metaverses. Which one will be the most popular and used, no one knows at the moment, but I deem them as social platforms composed of land or world parcels that anyone can own, from everyday people to small businesses to big institutions.

Why should you buy Metaverse Land?

Owners of these small parcels (aka Metaverse Lands NFTs) can monetize and build anything. The only limitation is their imaginations. However, I feel that everyday people genuinely express themselves with unfiltered feelings and moments with others every day. And the Metaverse could be an avenue for conveying these ideas & feelings to others. With web3 space ever supported by communities, it will be truly remarkable if Metaverses catches on to the mass public.

These Metaverse Landowners may not have the skillset to build onto their land, and they often resort to hiring builders to help them develop their desired Metaverse experience. However, they can use their lands to create enjoyable experiences for themselves and others to visit. As a result, virtual buildings such as art NFT galleries, museums, game rooms, online stores, stadiums, and more can materialize in the Metaverse.

Landowners and even builders alike can generate income by selling goods or even renting their lands as a passive income source. Ownership makes the Metaverse different from traditional virtual worlds like Second Life, The Sims, and Fortnight. A single company owns these games' virtual worlds. So while players can buy things like in-game items, they can only receive the benefits of these items. They don't own anything, and they can't resell these items for real cash.

On the other hand, users of Metaverses own everything they pay for and can monetize it. They can purchase, sell, rent out, and trade any items within the Metaverse world or through secondary marketplaces, and this includes Metaverse land NFTs or other assets such as buildings, clothing, etc. Additionally, users have full ownership of any revenue they generate from their land and assets. Every item within a Metaverse is an NFT.

To put it simply, everything people do in the real world is replicated in the Metaverse. This is revolutionary because it puts the power and ownership of something inside a virtual world back to its users. As a result, this provides much-needed freedom and limitless user-created content.

They can play, work, be social with other users, and actively participate in the digital economy within the specific Metaverse World.

With NFTs, users can fully own and profit from the items they purchase, earn, or build in a given Metaverse

Metaverse Currency

It's common for Metaverses to use their own created cryptocurrency instead of the fiat currency for in-game transactions. For example, Decentraland uses $MANA, and Sandboxes uses $SAND.

Cryptocurrency is a digital version of money in a Metaverse. Since cryptocurrencies use blockchain technology, the underlying design is decentralized, trustworthy, and secure. Like physical money or fiat currencies, Cryptocurrencies are "fungible." This means that they can be exchanged or traded for one another. Their value is also equal — for example, one MANA (Decentraland's native currency) is always worth one MANA. Moreover, cryptocurrencies standardized the currency used by every user in that particular Metaverse, from sellers and buyers of NFTs to people working and participating in activities in the virtual world. Furthermore, transactions in virtual worlds are almost instantaneous. Therefore, standardized currency makes it easier for landowners and users to access their funds in the virtual world.

While cryptocurrencies are "fungible," NFTs are "non-fungible." This means that NFTs are unique, can't be replaced with something else, and can't be duplicated within that Metaverse. Thus, they give users significant control over their Metaverse lands, buildings, clothing, avatars, and other items they own. For instance, if you buy a plot of land in Somnium Space Metaverse, you'll be the owner of that land plot. There will only be one plot of land in that location in the virtual world, making it unique and scarce.

Nowadays, there are more and more Metaverses created. The biggest question is, which Metaverse will still be around in 5 years? Will it be a much-decentralized platform like Decentraland or something like Sandbox or Meta's Horizon? Exciting times for everyone right now in web3

Thank you. I look forward to hearing your own insights and comments.

Cheers,

Eric F

If you want to get in touch about interesting NFT ideas or projects or want to hear about a specific topic, I'm @ericclfung on Twitter.

Thanks to @parabolic_B & @Rocketman1988 & @CISBROS for reviewing this post.

Disclaimer: I am just an NFT dreamer who has some success in this crypto and NFT space. The above does not constitute an offer or solicitation to offer or recommend any investment product.

https://twitter.com/EricCLFung/status/1531525557279944705?s=20&t=Frz-w-XfJ6Y6FHh2e0L87Q

Scammers and hackers are continuously developing new creative ways of tricking people into stealing money. Below are some typical scams in the NFT space, some of which I have experienced firsthand.

Fake collection

I have personally bought into a fake copied NFT collection. This is what happened. I had just missed out on a dutch auction mint, precisely IMAGINARY ONES. On Opensea, the floor price was selling for 2.2 ETH, and by searching the name on Looksrare, the floor price was 1.8ETH; immediately, I thought of arbitraging the NFT. So I FOMO immediately bought it, and when I went back to Opensea to sell it for 2.2ETH, the title of the NFT was another name. I realized I had purchased a fake collection. I didn’t check the official NFT contract address in my FOMO emotional state. Just a warning, always use the official NFT project secondary market links and NFT contract address.

Fake Mint Sites

Usually, right before an NFT project mint, sometimes the project’s DISCORD server gets hacked. The hacker posts a fake mint site link in the announcement section, and thinking this is the actual link and minting, your ETH gets stolen. It happened to me once before, so I always double-check that the mint link is authentic each time I mint something.

Another way is that hackers somehow get a hold of you through a google search. The fake copied site (website address is very similar, so instead of a .io, it might have a .com) will look precisely the same as the NFT project site. While on the site, you will see that the mint counter is declining. This causes you to FOMO mint without checking the official links. Either you lose the ETH you minted with, or your whole wallet might be compromised.

Pretending to be someone else

Sometimes, hackers use a name similar to or the same as one of the moderators of an NFT project. They will DM you, saying there is something wrong with your wallet address or the NFT, and will offer a way to reimburse or give you a free NFT. All these are scams and fake. And scammers can often fake legitimate NFT customer service pages to divulge sensitive information from unknowing NFT owners.

99% of the time, DM sent by strangers are scams. So don’t press on them, whether the links look safe. Just choose to ignore them, and your crypto and NFTs will stay safe.

Email

You might receive an email regarding your crypto wallet (MetaMask) has been compromised, and there’s a link there to reset and get back your wallet. Unfortunately, all these links will hack your wallet. First of all, Metamask does not send out emails, and FYI, you didn’t input your email when you sent up your crypto Metamask wallet, so how can Metamask send you an email?

Fake Site that looks Real

While entering a site, a popup that looks very real to the standard Metamask popup will ask for your secret seed phrase. Unfortunately, this has happened to be me and to a good friend.

NEVER input your secret seed phrase anywhere on any site, no matter how legitimate the site looks

In the worst case, if your NFTs have been stolen, you can flag the wallet with Opensea, and they will stop the sales of your NFTs on Opensea that were stolen, but the NFTs can still be sold/traded on other secondary markets. And maybe with some luck, the person who bought the stolen NFTs will give them back to you.

Google Docs Link

Hackers have sent out google docs links inside discords containing some webhooks used to hack a crypto wallet.

OpenSea vulnerability

A hacker posts about an OpenSea vulnerability, claiming they lost a significant amount because of "OpenSea API" approval. They direct you to fake sites to revoke your wallet permissions. Following the instructions on the site gives the hacker access to your wallet, so be careful of any links.

SudoSwap and Private Sales

People have been scammed from “private sales” through DM. The suggested platform is Sudoswap. While Sudoswap is legitimate, scammers take advantage of unsuspecting people b a fake ERC20 token named wrapped ETH. The token is approved on Sudoswap, so unsuspecting people unknowingly trade their valuable NFTs for this fake token. My personal opinion is to trade on an official secondary marketplace and be safer that way.

Free DISCORD NITRO gifts

Scammers have posted Free DISCORD NITRO gift links, and these links will ask for access to your crypto wallet, and then your wallet is compromised.

RUG Pulls

Rug Pulls, the NFT, and crypto scammers will say they stole your money right after the mint, and then close the whole project. Or it is a slow RUG pull, and they slowly drain the funds from their account. I will share how to spot rug pulls in a later article.

Fake Giveaways or Winning an NFT

A fake NFT account will message users, usually on Twitter or Discord, telling them that they’ve won an NFT. This fake NFT account will then give the user a link to a fake NFT website, which will ask them to connect their crypto wallet and enter their seed phrase. Usually, if you didn’t enter a giveaway or this Twitter account doesn’t have many followers, it is 99% a scam.

In conclusion, even though the NFT market is getting more mature, many scammers and hackers are still trying to rob unsuspecting people. Cybercriminals are getting creative and are finding new ways of tricking people. Stay vigilant and stay aware of what scams are out there. Just be careful. Do have fun, and let us meet up on Web3.

Thank you. I look forward to hearing your own insights and comments.

Cheers,

Eric F

If you want to get in touch about interesting NFT ideas or projects or want to hear about a specific topic, I'm @ericclfung on Twitter.

Thanks to @Lay0ver.0n.the.m00n & @Rocketman1988 & @CISBROS for reviewing this post.

Disclaimer: I am just an NFT dreamer who has some success in this crypto and NFT space. The above does not constitute an offer or solicitation to offer or recommend any investment product.

https://twitter.com/EricCLFung/status/1525747976060157953?s=20&t=gzt3TQv-EVyEuutxE-EOjQ

A DAO (decentralized autonomous organization) is an organization represented by rules encoded as a transparent computer program, controlled by the organization members, and not influenced by a single individual or by a sole party. In other words, they are member-owned communities without centralized leadership. A DAO's financial transaction records and program rules are maintained on a blockchain.

The above is a well-known description of a DAO, but this is not always the case in actual real usage.

Members of DAOs often buy their way in, most of the time purchasing a governance token.

A well-known example intended for venture capital funding and the first most well-known cryptocurrency DAO was "The DAO". They had amassed $150 million in crowdfunding in May 2016. Unfortunately, they were hacked and drained of US$50 million in cryptocurrency a few weeks later. The hack was reversed via a hard fork of the Ethereum blockchain: this incident is the birth story of the Ethereum Classic. (I will address in another entry regarding hard forks and soft forks in a blockchain and how this Ethereum classic story is very interesting and a pivot note in the crypto NFT space)

How are DAOs governed?

A DAO is coordinated and run by the decisions and votes of its underlying NFTs. In comparison to traditional companies, DAOs is a democratized. All the DAO members could vote for any changes in the community. The funding of a DAO is based mainly on crowdfunding (minting funds) that issues initial NFTs.

The holders of these NFTs have the power to nominate a proposal vote and vote on actions to take within the DAO. Additionally, admission to a DAO is limited to people who have confirmed ownership. In other words, an NFT is a governance token of a DAO. Furthermore, possessing more governance tokens often translates to greater voting power.

Contributions from members towards the organizational goals of a DAO can be tracked and can be internally compensated. Each DAO operates differently, but inactive or non-voting shareholders in DAOs often disrupt the organization's possible functionality. Hence some DAOS established rules as long as 10% of the tokens holders vote; proposals will be passed.

Government regulations

The precise legal status of DAO is generally unclear and may vary by jurisdiction and country. Some previous approaches to blockchain-based companies have been regarded by the U.S. Securities and Exchange Commission as illegal offers of unregistered securities when a $token with a monetary value is generated from a DAO. Hence the liquidity pool of the underlying $token is not implemented by the founders directly but by the community. Although often of uncertain legal standing, a DAO may functionally be a corporation without legal status as a corporation or just a gathering of NFT collectors and friends.

How DAOs are used

The proper DAOs envision a collective organization owned and managed by its members, everyone having a voice. Many experts affirm that this type of organization is not only getting more popular and may even potentially replace some traditional companies. DAOs have been used for many purposes such as investment, charity, fundraising, borrowing, or purchasing NFTs, all without intermediaries.

A DAO's financial transactions and rules are recorded on a blockchain, eliminating the need to involve a third party in a financial transaction, simplifying those transactions through smart contracts. The firmness of a DAO is a smart contract. The smart contract represents the organization's rules and holds the organization's storage. No one can edit the rules without people noticing because DAOs are transparent and public.

However, some DAOs still need a working team to operate, and they are obliged to obey the majority's opinion.

The community wallet is where the DAO funds are stored, but when the wallets are Multisignature wallets, they would require two or more member private keys to sign and send a transaction. Adding an extra layer of protection to the funds.

However, when the community wallet isn't multi-signature but single-signature or is held by the NFT project founder, the founder can easily run away with these funds. As a result, disagreements between the founder and community can arise related to using these funds, which the founder can ignore. To solve this underlying issue, the community usually elects a non-staff member to become part of the multi-signature wallet to avoid such conflicts.

DAOs are the new VCs

While most NFTs have taken the form of tokenized JPEGs with little to offer in the way of utility to date, using them as membership cards to a DISCORD server or a website. DAOs have a lot of funds that they're willing to spend to meet their community goals.

Each DAO has a different mission. For example, they could easily invest in new projects or donate to a charitable cause. For instance, HEADDAO has purchased multiple NFTs (such as Cyrptopunks & Bored Ape Yacht Club & CloneX) and put in into their fractionalized vaults. The underlying $token generated from this vault represents fractional ownership of these NFTs. Its members will be able to oversee the purchase of the NFTs. HEADDAO members receive $HEAD tokens representing the fractional shares of these NFTs. Members also get exclusive access to the DAO community and voting rights over the DAO's assets.

Or DAOs can vote to create a P2E gaming metaverse ecosystem like the famed "BAYC" ("Bored Ape Yacht Club"). Additionally, some DAOs' missions are based on personal interests. Such as "ConstitutionDAO," which banded collectors together in the hope of buying one of the original copies of the U.S. Constitution from Sotheby's. "IreneDAO" appears to be an early example of a fan club DAO. Yet, it pivoted to a social platform where musicians, celebrities, and content creators leverage the blockchain to interact with their fans.

A disadvantage of a DAOs structure is that it can take an extended time to decide on project development. In real life, a startup project with lots of funding can go at lightning speed, but here in the NFT web3 space, with everyone living in different places, getting work done together efficiently may present a challenge. With the NFT space ever-changing ever so quickly, these team members are under immense pressure from the community. Mistakes could be made by moving too fast, failing to plan and layout the proper groundwork, overpromising, and not being proficient in all needed areas, such as smart contracts auditing, inadequate communication to the community, and marketing to new prospects.

In short, DAO is an excellent approach to managing a community or organization that helps overcome the shortcomings and show potential and promise in the web3 space and real life.

Thank you. Look forward to hearing your own insights and comments.

Cheers,

Eric F

If you want to get in touch about interesting NFT ideas or projects or want to hear about a specific topic, I'm @ericclfung on Twitter.

Thanks to @Ulkdoodle & @Rocketman1988 & @BEAN for reviewing this post.

Disclaimer: I am just an NFT dreamer who has some success in this crypto and NFT space. The above does not constitute an offer or solicitation to offer or recommend any investment product.

https://twitter.com/EricCLFung/status/1516996084941606912?s=20&t=k4j4OIkkYPlZKc2E1lVk8g

The Market

If you are familiar with stock trading, sometimes people look at the news and rumour mills and use technical analysis. The NFT market is slightly different but can be affected by many factors outside their projects. Below are just my own opinions, so please use them as insight into your decisions.

I have compiled a shortlist of bull and bear events below. What will happen with the NFT market is how the market will react to this bullish and bearish news.

From these charts, the NFT market volume has gone up significantly since last February and had a tiny increased volume in March and slowed down since.

Looking at the daily chart, it seems to be bottom out. Several good-quality NFT projects are not getting completely minted. In addition, there is FUD in many NFT projects, and the flippers aren't doing so well lately. So it seems it might be coming back soon.

With crypto overall going back down, with BTC going back down from recent highs of USD48K to today's recent lows of USD40K, NFT collectors may be spooked and want to sell their NFTs at a loss to get out of the market.

Bullish news that can pull up the NFT market (late April and Q2)

1. The confirmed Metamask $mask token airdrop. When and what the requirements are still in question. This new liquidity could provide the NFT market a right push upward.

2. Coinbase NFT Marketplace was initially scheduled to launch in 2021 and has been delayed; Q2 will finally launch? With majority of crypto users not into the NFT market, this could easily flood the NFT markets will new liquidity.

3. Opensea incorporates the Solana chain onto their platform.

4. OTHERSIDE: The BAYC Metaverse lands are expected to hit in April.

5. There are still many mints like “MOAR Joan Cornellà” that sold out in seconds at 0.5ETH. Their "diamond hand contract", meaning the NFT could not be tradeable on the secondary market until the NFT reveal is a gamechanger for the NFT space.

6. Massive bullish projects such as “Imaginary Ones” and “Project PXN” & “MINDBLOWON UNIVERSE” are launching soon. These NFT projects could pull many new enthusiasts into the space.

7. New NFTs utilizing OMNICHAIN were a success, such as Tiny Dinos, spreading how useful it is to sell and buy across different chains, bringing more crypto users into the NFT market.

8. Germany and USA officials shut down Hydra Darknet Market and seized more than 25 million in BTC and 34 million altcoins. These assets would be auctioned to institutions. As a result, it can cause more waves into the market.

9. Canada Federal Conservative leadership candidate Pierre Poilievre and his current position as Shadow Financial minister openly support Bitcoin and even pay for meals using BTC lightning network. This adds more awareness to the people of Canada that BTC, can be an everyday thing.

10. A chat function was added to Looksrare's NFT marketplace between the seller and buyer, and it works. Maybe add more significant sales to the NFT space

11. A user took out a USD 8 million loan using his 104 "Cryptopunks" as collateral, adding more liquidity to the NFT markets and signaling more bluechip NFT collectors that this is possible.

12. More prominent fashion and jewelry brands are getting into the NFT space. With the recent success of Gucci Grail from 10tkf collaborations and next to the rumored Tiffany Co and Cryptopunks NFT collaboration. Hublot partnered with Takashi Murakami to push out watch NFTs.

13. Successful IPs such as DC comics releasing Batman NFTs. In addition, "Teenager Ninja Turtles" and Japanese "Ultraman" NFT have been announced.

14. Exciting news on Adidas NFT (ITM) merch drop and their news on metavers and phase 4 NFTs.

Bearish Updates

1. Due to the US Federal Reserve's hawkish rhetoric, they are likely to increase interest rates after the following inflation report. This time 0.5% increase and decrease in the number of bonds in the market, causing tech stocks and crypto to drop. It might cause panic making more NFT holders sell at a loss to get out of the market. However, with that said, the markets may have already priced this into the pricing. And may not affect HODLers of NFTs.

2. This is controversial, as it could also be bullish news. Moonbirds is an upcoming exciting NFT project, but the high mint price at 2.5 ETH is questionable. Either this will suck the liquidity of the NFT market, or if it doesn't wholly mint out. It could drive the entire NFT market downwards.

3. With the Russia Ukraine war continuing, this adds to inflation in everything, especially oil prices.

4. Wechat banning NFT chat groups. China doesn't need or like crypto but openly said it was okay for the NFT market to operate in China. This is signals signs that China may ban anything related to crypto. However, there are many and new posts on China's RED regarding NFTs, that are bringing in many more China NFT collectors.

5. There are more NFT creator program platforms and launchpads created, such as VISA, and BUENO (from the "Robotoshfts" creator)

6. More scams in the space, scaring away seasoned NFT enthusiasts and beginners alike. There was a series of discord hacks recently in many big bluechip projects, and also, some celebrities are getting scammed out of NFT's value in the millions.

Thank you. Look forward to hearing your own insights and comments.

Cheers, Eric F

If you want to get in touch about interesting NFT ideas or projects or want to hear about a specific topic, I’m @ericclfung on Twitter.

Thanks to @Parabolic_B & @LiMeRiC & @CISBROS for reviewing this post.

Disclaimer: I am just an NFT dreamer who has some success in this crypto and NFT space. The above does not constitute an offer or solicitation to offer or recommend any investment product.

https://twitter.com/EricCLFung/status/1513799454599806978?s=20&t=ID2iClcOzXaN_5Z3InMRrA

https://twitter.com/EricCLFung/status/1513797498158333953?s=20&t=QoSB0oxReDEK8GyXS6AEww

A Cross-chain is a bridge that allows different blockchains to communicate and transact. A blockchain bridge is a link through two separate blockchains.

Cross-Chain? Blockchain Bridge?

One can think of blockchains are like independent countries with their own rules and currency, and bridges as border crossings. Let’s compare blockchain to real life. For example, we want to travel from Alaska to Argentina as a traveling analogy. We would have to drive through Canada, the States, and Mexico until South America. Each customs border is like a blockchain bridge. At each border crossing, customs officers will not only check our luggage but charge us customs tariffs (we can assume this as gas in blockchain terms) & require us to get a visa and throw away things that are not legal in that country. In the worst-case scenario, it may be necessary to trade all our cash into that country’s currency before continuing the drive south (similar to exchanging tokens in each blockchain)

Bridging technology, to this day, still contains too many security issues and fees. In addition, each blockchain has a different set of protocols and stipulations, making it difficult to bridge seamlessly. Hence, bridging can create blockchain security issues and preservation of assets while going from one chain to another. So it could be expensive and unsafe

Multichain NFT? OMNICHAIN?

Driven by Ethereum’s problems, such as interoperability, high gas fees, many second-layer platforms, and new blockchains were developed over the last few years. “LayerZero” (a Vancouver company funded by Sequoia Capital & FTX Ventures) leverages the security properties of the established oracles (Chainlink and Band) with an additional layer of security via the open relayer system, developed OMNICHAIN.

In Layman’s terms, this allows OMNICHAIN to enable cross-chain bridging {state sharing, bridging, lending and borrowing, swaps, governance}. Users will be able to swap from altcoins on the Ethereum network to SOL Solana in one single transaction from the source chain instead of bridging a few times. Unified liquidity across all chains with guaranteed finality on the source chain. This new technology makes Web3 more accessible to users and accelerates the exponential adoption of digital assets. Currently, the protocol supports all projects compatible with the Ethereum Virtual Machine (EVM). However, it will support non-EVM chains like Terra, Cosmos, Hub, and others in the future.

Going back to the traveling analogy previously, it means OMNICHAIN is similar to holding onto the best passport and VIP access. Instead of driving through North America to Argentina, you fly straight to Argentina on a private supersonic jet with costs lower than driving a car, no customs fees, no tariffs, no need for a visa, and land with all your luggage and everything intact, safe and quickly.

Lending and Borrowing with De-Fi

OMNICHAIN opens alot of opptuniries for de-fi. Nowadays, when a user has tokens on chain A but wants to yield farming on Chain B, the user would have to collateralize on Chain A. The process begins with borrowing, bridge (fee), and swap (fee). Then farm on the destination chain, swap back (fee), bridge back (fee), repay the loan, and un-collateralize. Instead, utilizing OMNICHAIN can collateralize on Chain A, borrow on the destination chain, farm, repay, and unlock the collateral, skipping the four bridging and swapping fees all in one go, which is much more straightforward.

Also, “Sifchain” was recently announced and is the OMNICHAIN solution for DEXs. They might replace the famous “Sushiswap” and “Uniswap” in the future.

Multi-Chain NFTs

The first NFT projects to utilize this OMNICHAIN are “Gh0stly Ghosts” and “tiny dinos”.

Both projects are transferable between Ethereum (eth), Polygon (matic), Avalance (avax), Binance Smart Chain (bsc), Fantom (ftm), Arbitrum (arb), Optimism (opt).

Currently, most P2E games and DAPPs are on the Ethereum blockchain. However, due to its high gas fees, many users have chosen to be on other blockchains. For example, an Ethereum-based project can only be used with Ethereum and possibly its layer two solutions, such as Polygon. But in the future, this Ethereum-based game/application can be integrated with other chains such as OMNICHAIN, enabling much more accessibility to future integration with the rest of the Web3 space.

The “tiny dinos” NFT minted out on seven chains in hours and is now on the secondary market. However, combined with the cute pixel dinosaur profile picture and one of the first NFTs on Omnichain, the floor price skyrocketed from 0.00 ETH to 0.15ETH in 24 hours.

They have no discord or roadmap; however, a community discord was created and now has more than 400 members because of the popularity gained. It is incredible, and when NFTs assets on one chain are cheaper than another, people will buy off another chain and swap it over for the desirable chain to sell for profits.

People will arbitrage between chains when the difference is significant.

Transfer to another chain is quite simple. For example, one can edit the NFT contract directly via a web browser and transfer a different blockchain.

—

to transfer

call traverseChains in the contract write tab

payableAmount — covers the target chain gas fee (any gas not used will be refunded)

chained — target chain id

tokenId — nft token id chain id

—

Side note from @LayerZero_Labs

uses different numbers to wallet chain id)

eth 1

bsc 2

avax 6

poly 9

arb 10

opt 11

ftm 12

—

This multichain shows promise and lots of possibilities, so the first few NFT projects that utilize this blockchain may turn into the next “Cryptopunks”. A notable upcoming NFT project utilizing this multichain is "Turtle Metaverse".I reckon more and more NFT projects and tokens will be using this new technology instead of a single chain soon. OMNICHAIN bridges the gap between several blockchains while benefiting the holders through arbitrage trading & cheaper gas fees.

The future for OMNICHAIN NFTs is unparallel. I highly recommend we all learn more about this technology on LayerZero.

Thank you. Look forward to hearing your own insights and comments.

Cheers, Eric F

If you want to get in touch about interesting NFT ideas or projects or want to hear about a specific topic, I’m @ericclfung on Twitter.

Thanks to @Parabolic_B & @Shek & @Wabz for reviewing this post.

Disclaimer: I am just an NFT dreamer who has some success in this crypto and NFT space. The above does not constitute an offer or solicitation to offer or recommend any investment product.

https://twitter.com/EricCLFung/status/1512343632480972807?s=20&t=7mnkjl-91OGNXAXBvUtxWg

Whitelist, a list of names and wallet addresses collected, allows certain members to be guaranteed a spot for minting a new NFT collection. Whitelist ensures the person can mint an NFT during the official drop without worrying about gas wars and the NFTs from selling out.

Usually, these whitelist spots are to reward the early loyal supporters of the NFT project. 0n1 force was the first to popularize this whitelist concept in the NFT space in August 2021. They had called this list "Nameless". Every NFT project calls it differently, and for example, names could be "allowlist" or "mintlist" or "mint pass". However, some recent NFT projects can't guarantee access to minting an NFT, even if you have been whitelisted because the number of whitelist spots exceeds the NFTs.

The whitelist mint price is usually lower than the public mint price. As a result, some flippers would like to get on the whitelist to maximize their profits on the secondary markets.

How can I be Whitelisted?

Nowadays, to get on a whitelist, each NFT projects have their own requirements, for example:

1. be active and engaged in the community discord until you get to a certain level (leveling up)

2. Invite competitions to the project’s Discord channel

3. following the project's social media and tweeting, commenting, quoting to win a whitelist raffle

4. participate in twitch or random fun discord games hosted by project founders & moderators and win a whitelist spot

5. other contests such as creating fan-made derivative art / memes or in real-life contribution

6. if you own a certain bluechip or partner NFT, you might automatically get a whitelist spot

7. get the whitelist from the project's partners (The partners are may either raffle these whitelist spots as benefits to their community or sell them to their community through a whitelist market)

All the things above are known as grinding except for number 6. In the past, doing one or more of these five things would be able to secure yourself a whitelist spot. However, this is not the case nowadays. Additionally, some NFT projects have vague and ambiguous whitelist criteria, hence causing even more engagement. Resulting in some people hiring freelancers to help grind for these whitelists.

Another Note on Grinding

The desire to get on the whitelist is why some grinders stay up all night to engage with the project's Discord server; some never seem to leave the discord server in the fear that they will miss something crucial or surprise announcements. As it gets closer to the mint date, some people lose hope of getting a WL spot, and this causes frustration and negativity. The community usually tries to encourage them, but when there are thousands of people going for the limited whitelist spots, no matter how much one grinds, there are always the unlucky ones that are unable to get a WL spot.

Alpha Groups

Small or large alpha groups may be offered whitelists to a new NFT project, and these are raffled or given to their group members as benefits. In addition, sometimes, the alpha group leaders will help analyze the new NFT project's potential and legitimacy and co-host AMA to talk about these new projects.

Whitelist Market (No more grinding)

Whitelist Markets began to pop up in Q1 2022, selling whitelist spots using specific tokens. For example: "HeadDAO" & "Habbiz" & "CryptoZombiez" & "Satoshi Runners" & "Neo Tokyo" have their whitelist market. There is a Famous Fox Federation whitelist token marketplace on the Solana network, where you can use SOL to buy or sell whitelist tokens. (many of these tokens on Solana are fake, so do diligent research before purchasing)

Public Mint & Secondary Marketplace

If you missed the whitelist mint, there is always the public mint, usually a higher price, and usually 24 hours later (sometimes shorter than 60 minutes), which might sell out quickly. Higher demand NFT collections tend to use a public dutch mint that begins before the whitelist mints. The public dutch mint starts at a higher price and slowly decreases over time until the NFT mints out.

On the Ethereum and polygon network, usually after mint, the NFTs will be viewable almost instantly and attainable on secondary markets such as "Opensea" & "LooksRare" & "Rarible". For Solana markets, "SolSea" & "Magic Eden", the collection will appear a few hours after the collection has been fully minted.

My Final Thoughts

Whitelisting mechanics are ever-changing as the NFT market moves quickly. So have fun out there, do find some good mints that vibe with you.

In the following few articles, I will share how to avoid NFT scams and my personal experience as a degen NFT investor & HODLer.

Cheers, Eric F

If you want to get in touch about interesting NFT ideas or projects or want to hear about a specific topic, I'm @ericclfung on Twitter.

Thanks to @Wako & @Brioche & @obesfosho for reviewing this post.

Disclaimer: I am just an NFT dreamer who has some success in this crypto and NFT space. The above does not constitute an offer or solicitation to offer or recommend any investment product.

https://twitter.com/EricCLFung/status/1511527363640582145?s=20&t=ez-fBQ6WwdxwQv6aiWxWLA

The following documentation with the “Mirror XYZ” platform is my first official entry into web3. My wife and friends convinced me to share my insights as I spend a big part of my day with NFTs and crypto. So I decided to dedicate this post to beginner & intermediate retail NFT crypto users. I will share the ups and downs of my crypto journey, mining, and flipping NFTs.

(What I am about to share shouldn’t be taken as financial advice, but to inspire you on your own personal crypto & NFT journey)

(in future sharings, I will aim more on specific topics of interest)

Cryptocurrency and NFTs have sneaked up as the world reached new stages in its technological feats. For example, it is much harder to counterfeit, and higher security between transactions as a digitalized form of currency and token. As a result, people worldwide are starting to invest their physical money, believing that cryptocurrency and NFTs are the future. There is a paradigm shift from Web2 (corporations controlling the web, Facebook & Google & Tik Tok) to a more decentralized Web3. Web3 refers to the next version of the internet, which focuses on decentralization and actual user ownership instead of government and corporate ownership.

Early Days of my Crypto Journey

I started to notice crypto very early. There was an ATM placed nearby for Bitcoin (BTC) transactions near my workplace back in 2011, but I never paid any attention. In 2019 November, when bitcoin was skyrocketing again, a friend at a bar was talking about it. I downloaded the app my friend recommended, the EXODUS app. While trying to purchase Bitcoin, it refused my credit card, so I forgot about it. Until early February 2020, I was at the same bar again; this friend was bragging about how Bitcoin went up 30% to 40% since we last met up. I had some regrets. I started trying every crypto app on my phone and found that Binance worked. So I immediately filled it with USD2,000. Every week I kept filling out my wallet with new USDT (Tether) with my credit card while trying to buy the price dips and being excited when it pumped. Since then, I have constantly been chasing the hype of BTC/ ETH / ADA / XRP / TRX / ETC or any other new coin APE / LUNA / SOL value going up or down, any new hyped NFT, or new NFT tech.

There were times when Coinbase and Binance went down due to extreme volatility. Still, I learned the hard way there’s no possible way to monitor everything. It is challenging to buy before crypto pumps or sells before it crashes. Hence, I found the easiest and less stressful way to set your sell or buy limits ahead of time. There are many ways to do technical analysis based on crypto price movements. However, I am not an expert, so I usually look at the overall sentiment of the crypto market.

Finally, it is essential to find a good & safe DEFI (decentralized finance) platform that generates high staking rewards when you decide to hold particular crypto for the long term. These staking rewards can increase the value of your holdings even in a bear market. In another sharing I will discuss stake rewards and high LP (liquid pool) farm yields.

Maturing into an Ethereum Miner

My brother told me about mining and how it was an excellent way to generate Ethereum (ETH) in March 2021. I was intrigued. I found a youtube video that led me step by step on building a miner with the computer components that I amazon and purchased from a local computer store. I calculated it would take about 7 months to break even. I also bought all my mining equipment brand new at scalper prices. So the first rig was 6 AMD RX67000 GPUs, and then the second rig was a combination of 8 RX6800 and RX6700 GPUs.

I own and manage metal casting & CNC facilities as my day job. One of our main products is cinema camera heatsinks. As I was mining, I found that the heat of a GPU affects the mining speed; hence my team and I developed a new heatsink product for GPU mining.

Because of the high heat generated, downtimes can often occur with the miners, so do DM me if you are looking for ways to manage heat. Additionally, the Risers used to increase the number of GPUs on a motherboard are challenging to use and often breakdown. With that in mind, I recommend a server mining case for easy maintenance instead of an open-air rig. With the 6rigs and 43 GPUs built, I finally broke even after 11 months. Much longer than expected because I did not account for increasing mining difficulty and EIP 1599 protocol.

NFT Era (my very beginning)

Around July and August 2021, I stopped purchasing Ethereum mining equipment. I realized mining may die off soon. I had lunch with a venture capitalist friend one day. He told me about “Sandbox” metaverse and how he was trying to buy as many “Sandbox” lands as possible every Thursday. The first NFT that I purchased was a sandbox metaverse land through the presale on a Thursday. It was fun and exciting all at the same time. I had managed to pick up a land per week on the sandbox website and then some on Opensea. I told myself I should pick a few more to give to my wife and my family in case these metaverse lands go to the moon in the future. (all this happened before Facebook announced their name change to META, and after that, all metaverse lands went up 10–20x in price)

Different types of NFTs (Crash Course)

Metaverse

Virtual lands, there are many now. All of them have their advantages and disadvantages. There are ones that exist in games that people use to collaborate and work together via VR headsets. In fact, Zoom or Teams is considered a metaverse lands too. Others are used for art galleries or corporate training courses, or teaching pilots to fly.

DAO (Decentralized Autonomous Organization)

After acquiring several metaverse lands, I started looking at other NFTs. Watching youtube videos at first, and learned that DAOs were the thing at that time, and “Nouns”, “HeadDAOs” were everywhere. Suppose one couldn’t purchase a BAYC (Bored Ape Yacht Club) or Cyrptopunk because of their high price. In that case, you can still earn the benefit from these increasing value of bluechip NFTs inside the DAO vault. (This I learned isn’t always the case due to fractional vault and tokenization, something I will go in-depth in my subsequent documentation)

P2E (Play to Earn)

There was GAME-FI (game finance) or P2E NFTs, such as “Nifty League Degens”, & “Axie Infinity” & “WOLF GAME” being spotted as the next big thing. P2E means that the tokens you earn in the game could be turned back into actual real money when you play. Some NFTs have a mixture of P2E and metaverse elements together. Amazing anime profile pictures (PFP for short) art like “0n1 force” & “Azuki” & “MURI” popped up, and cute cartoons profile pics like “Kumo x World” & “Wonderpals” & “Karafuru” with great discord communities that promise P2E futures.

Art Collections or just plain PFP

You will often see authentic collector art items like “Beeple” and “Art Blocks Curated” at Sotheby and Christie’s auctions. On the other hand, “Cyrptopunks,” probably one of the most notable and famous NFT profile pictures, has no utility. It is plainly a picture with immense monetary value.

Real Life Utility

Some NFTs focus more on fashion merchandise, like “HapeBeast” & “dourdarcels” & “Adam Bomb Squad”. There are celebrities NFTs that ride on the initial hype. There is special access to a specific online platform with a verified NFT key. Another example of real-life utility is NFTs representing a portion of physical goods, such as art paintings or real-life lands. This is because, at their core, NFTs are just digital abstractions used to represent one-of-a-kind assets.

VIP Passes

There are many different types of NFTs these days, including PFP, art, utility, game, metaverses, and unique accesses to physical or virtual places. In addition, NFTs can be used to give you access to VIP communities, for example, Adidas ITM” pass and other OG alpha pass. Alpha passes are NFTs that allow you to be in an exclusive group. In these communities, an OG (Original Gangster) or a group of wealthy NFT flippers give you tips on what to buy and sell to 100x your money. These started to get popular at the beginning of 2022. There are good alphas and also bad alphas. Some even have terrible intentions; for example, the OG will list their NFT assets on the market before telling their communities to pump a specific NFT.

DAOs (more in-depth)

Nowadays, in March 2022, DAOs are a common thing, no longer as sexy as it was back in 2021. DAOs are also known as the mini NFT venture capitalists. This is because they have a lot of capital to invest into new NFT or bluechip projects. However, many issues arise, such as the team/moderators not pulling their weight or being slow in delivering what was promised in a timely fashion. In my opinion, DAOs are a double-edged sword. Sometimes, the holders do not fully understand the snapshot vote nor the time and resources needed to complete specific tasks. Additionally members are often swayed by a more vocal or “whale” member in the DAO.

There are often disagreements within DAOs, famous DAOs such as “BAYC” and smaller DAOs such as “Cryptozombiez”. Marketing the DAO’s underlying NFTs and redoing snapshot votes even after the cast ballot can be reoccurring issues. The founder and the team can even ignore the snapshot vote result of their own personal incentives. More heavily funded DAOs, including VitaDAO and AssangeDAO, have different protocols (smart contracts) to do a specific action when a particular situation takes place. I personally love some DAO communities. There are some great ones in the NFT space. “Kumo x World” is a warm community, doing fun events and weekly storytelling with a special human touch. “0n1 Force”, with their solid community, promotes Japanese artists in their marketplace.

Staked tokens generating NFTs

As a new average retail holder, earning tokens is excellent. Stake an NFT to earn tokens. Still, one doesn’t consider the token’s value and how the increasing supply and no real demand or utility will eventually crash the token value. First popularized by the great CyberKongz. Furthermore, this concept has ruined some projects like “Cyrptozombiez” & “Angry Boars” & “Noundles”. Honestly, it was really enticing to a newbie such as myself in the beginning to earn tokens worth something and that I thought I could break even in a few days or weeks or months.

However, tokens with no real utility won’t get you anywhere at the end of the day. Too many Whales holding these tokens or flaws in the tokenomics or some issues with the LP pool will ruin your hopes of gaining back anything. Nevertheless, NFTs like “NFT Worlds” & “KaijuKingz” & “CyberKongz” are thriving on this staking NFT token earning mechanism.

Profiting via flipping NFTs

In the beginning, I did watch YouTubers on their tips on what would be the next 100x NFT project. However, I soon realized that many YouTubers are not invested in these NFTs. Instead, they are shilling and often just reading off the website without giving any personal opinion or profound insight. So I stopped watching youtube videos and spent more time talking in the discord communities and learning more on new art NFTs or fabulous new nft technology. Good or hyped upcoming NFT projects spread quickly through discord channels.

My most significant flip was “NFT Worlds”. When the price was 0.5 eth, I FOMOed in. It was such a great idea, with “Minecraft” being open-sourced and Microsoft giving the “NFT Worlds” team permission. I had purchased 3 and then paper handed at 1.1eth. When the floor price went to 2.2eth, I knew “NFT Worlds” could follow “Sandbox” and “Decentraland” ‘s bluechip status, so I maxed out 2 credit cards, repurchased numerous NFT Worlds. So when the floor of “NFT World” rose to 8 ETH, I profited one, then to 15 ETH, and I profited another. I am a dreamer and sometimes do act more emotionally than logically. I ask myself, why was this enough to justify taking such a considerable risk? I honestly don’t have a solid answer. I took a great leap of faith. I believe these opportunities like “NFT Worlds” may come once in a lifetime.

I also flipped 2x to 3x on smaller projects such as “Cosmodinos” & “Planktoons” & “Gutter Cats” & “Farm Land by Pixels” & “Starcatchers” & “Dappers Ape High Society” & “Desolates”. As I successfully flipped these NFTs and others, I also HODL NFTs for the long term. Over time, I developed a formula to evaluate an NFT project. Additionally, luck was a significant factor, too, as I happened to be looking at the right project at the right time. When to buy-in is critical, but when to sell is considered more important.

Lastly, I finally understand why and how some NFT flippers make money. I was fortunate. I managed to get my life back together during my flips, and NFTs are life-changing money. For example, there are “Boss Beauties” that I believed at the beginning would take the same path as World of Women and profit too. And as I am writing this document, I missed out on World of Women Galaxy Dutch Mint at 1 ETH and was an easy flip to 2 ETH in less than a few hours.

I also ventured out to Solana and Cardano NFTs in January. First, I transferred about 100 SOL into a new Phantom wallet. Following that, I transferred 2000 ADA into my Navia wallet. Unfortunately, the experience at the beginning with both phantom and Navia wallets was horrible. These two networks made purchasing and selling NFTs slow, congested and resulted in many failed transactions despite no gas fees. However, at least with the Ethereum chain, the transactions will go through if set higher gas fees.

I finally understood my investing NFT strategy. When I really like the project, I will try to buy 3 of the same project. It is a more considerable risk, but I can also stay part of something I like when I profit as the floor price increases. It’s similar to a fun make it or break it investment, but there is some resell value. Needless to say, I got wrecked.

My NFT Failures

I tried to make my own NFTs in September 2021, with zero experience, on the polygon chain, called MarilynG. It went nowhere. I even took it on Facebook groups and tried to shill it. After a long while, giving away like 30–50 NFTs, I finally realized that I needed an interested discord community. Unfortunately, I didn’t have that much time and budget, so I gave up. Next, I started another NFT project called PuffPuff Bears with all the lessons learned. Ran into many team development problems and actual real utility. Finding out where many other obstacles involved solidity programming, but the main obstacle was getting the project known and popular like any other business.

Hyped projects like “Bunny Buddies” & “More than Gamers” & “Meta Angels” & “Fudders” caused me a lot of pain, as I sold all these NFTs at a loss. “Meemos World” & “3D Bears” & “Fudders” & “Chibi Dinos” & “Shades of You” & “Art Monkees”, I really like all their brand and art, but the market didn’t like them. Hence I took massive losses here.

There are many of these hype projects which could seem a good investment at the time. However, these NFTs floor price would never go above the mint price. In December 2021 and January 2022, when NFTs was a bull market, anything that was minted or purchased from secondary markets could instantly flip 2x 3x right away. This is very unlikely in a bear market when the hype is less crucial than the NFT’s underlying value.

Final Thoughts on NFTs (March 2022)

Honestly, I feel 90% of PFP NFTs will eventually fade out or be slowly rug pulled, so my advice on NFTs is “invest in what you can afford to lose”. I will admit NFTs are a gamble, but it’s also more promising and safer than going to the casino and putting it all on black. For Solana NFTs, popular “Pesky Penguins” & “MonkeLabs” & “Portals” went from an all-time high to losing more than 50% in this bear market in March. Bear markets are where a genuine community or actual demand for the NFT is tested.

As I’m finally recording my journey and insights here, I see a bright future for NFT blockchain technology. Early adopters of this new developing technology will win in the coming years. Being the first mover does have its advantages, only when done well. Nowadays, there are so many cookie-cutter NFTs. The real test as a retail investor is knowing which one will survive this bear market and rise higher than before.

However, as an average retail investor into crypto and NFT, we can easily make the mistake of choosing the wrong bet. Many NFTs may go to zero unless they have good utility demand or a mature ecosystem. Some NFTs might have good branding, and loads of funding, or new intuitive programming. Two examples are “ASM Brains” AI learning & “0n1 Force” Frames recall NFT and morphing NFT mutable mechanism. Some NFTs might prove to be the next big thing. We just need to do proper research and have faith before investing in anything and surviving this bear NFT market.

Thank you. Look forward to hearing your own stories and comments.

Cheers, Eric F

If you want to get in touch about interesting NFT ideas or projects or want to hear about a specific topic, I’m @ericclfung on Twitter.

Thanks to @kumobot.eth & @Mason & @Draca Lambo for reviewing this post.

Disclaimer: I am just an NFT dreamer who has some success in this crypto and NFT space. The above does not constitute an offer or solicitation to offer or recommend any investment product.

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