Investment idea: the sphere of non-interchangeable tokens (NFT) with a one-year horizon

Investment idea: the sphere of non-interchangeable tokens (NFT) with a one-year horizon

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Investment idea: the sphere of non-interchangeable tokens (NFT) with a one-year horizon
Nikita Zuborev, a senior analyst at Bestchange, spoke about the prospects for the NFT segment

Throughout 2022, application solutions with NFT in various projects have been actively developed. The audience of the technology continues to grow at a tremendous rate due to the adoption of the technology by social media. This year, some tools related to NFT were implemented by Twitter (audience of about 400 million users), Reddit (audience of about 430 million users), Onlyfans (audience of about 175 million users), VK (audience of about 100 million users).

Meta (Facebook and Instagram) and Youtube also announced their plans to introduce NFT.

Idea
Based on this data, we can consider a long-term portfolio, taking into account the prospects for the development of the segment of non-interchangeable tokens.

We would suggest dividing the portfolio into two parts, the first would be a liquid basis, these are tokens of projects that provide infrastructure for NFT. Polygon blockchain turned out to be the most popular for application solutions, so as the audience grows, the entire ecosystem may get developed, and the demand for native blockchain token will grow accordingly.

Other top blockchains - Ethereum and Binance Smart Chain - may also get a comparable effect from the development of NFT.

Another interesting application of NFT is Telegram's Fragment platform, with the current sale of virtual numbers for anonymous registration and domain names for the future Web3.0 ecosystem of Telegram.

We suggest forming the second part of the portfolio from specific tokens of various promising NFT tokens. In a growing market, which by all projections should take place in the second half of 2023 and all of 2024, collections with high social capital could rise in price several times over.

Point of entry.
Today is a terrific environment to open long-term positions for at least 1-2 years, preferably 3 years or more. The ongoing scandals surrounding centralized exchanges are constantly weighing on the value of the Binance exchange's native token. And rumors around the potential centralization of Ethereum due to the move to PoS, with validators predominantly in the same jurisdiction, are also negatively affecting the price of ETH in the medium term.

The market as a whole continues to be in a global "down-trend," which opens up the opportunity to buy tokens at undervalued prices.

Assumed portfolio structure
Polygon (MATIC) - 20%
Toncoin (TON) - 20%
Ethereum (ETH) - 10%
Binance coin (BNB) - 5%
Another 5% can be allocated to ApeCoin (APE), acting as a native token in the meta-unit being developed, the owner of the world's most popular NFT collections Bored Ape Yacht Club, CryptoPunks and Meebits.

The remaining 40% can be distributed among different NFT-collections.

For example, find interesting offers among applied projects from social media, like collections from Reddit or Twitter. Perhaps invest in a "beautiful number" from Telegram. Next year the first "drop" from VK is planned, you can try your luck there too. It is worth keeping track of projects with a wide audience, which will release their collections.

Risks
The first part of the portfolio is quite conservative by the standards of the crypto market, it lists well-established and reliable projects that have many growth and development factors except for the NFT segment, so the risks in 3/5 of the portfolio do not exceed the overall risks of the market.

However, the remainder - it is an extremely risky investment. It should be taken into account that non-interchangeable tokens have several orders of magnitude less liquidity, and predicting the value of NFTs in the future is not inherently different from flipping a coin. But, with all that said, the investment can pay off many times over, given the right set of circumstances. For example, one appreciated token can potentially outweigh the value of all the others. But there is absolutely no guarantee that this will happen to you, to your chosen collection, with tokens owned by you.

So it's worth investing only as much as you're willing to lose at least half of that amount irretrievably.

 

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