In recent years, digital assets have been gaining popularity as a new investment opportunity, from cryptocurrencies like Bitcoin to unique digital items such as NFTs. However, investing in this emerging market requires a deep understanding of the potential benefits, opportunities, and risks involved.
At EkoLance, we recently hosted a Zoom session with Florian Bruce-Boye, founding partner of the NFT Fund, Klio Capital, and an industry expert on digital assets. Florian shared his knowledge and expert insights on investing in digital assets. This article summarizes everything he shared during the Zoom session.
What are Digital Assets and NFTs?
The other iterations of the Web brought a problem of abundance with little or no scarcity in the internet. Web3 is solving this problem by allowing people to own digital assets on the internet.
“Web3 allows us to not only read and write but to also own things and those things could be anything. They are known as digital assets”— Florian Bruce-Boye, Founding Partner of Klio Capital
NFTs are like the digital form of paper that you can send around the world. They cannot be copied, they are non-fungible, you can keep track of everything that happens to them and the most important part is that they are programmable. The programmable nature of NFTs makes the use cases unlimited because you can formulate any piece of an idea into code.
What is the Current State of Web3?
“Web3 is in its infant stage. We have lots of projects with no use cases and bad actors are many in the ecosystem. It is also not easily accessible and it is usually hard to comprehend”— Florian Bruce-Boye, Founding Partner of Klio Capital
The current stage of NFTs are similar to the early days of iPhone. When iPhone was launched, there was no app store installed in it, which was later launched on the device and resulted in a new revolution of digitally programmable pieces of digital icons on the phone but nobody knew what to do with it.
We don’t know what best to do with technology right now because the infrastructures are yet to be laid out perfectly. in the future, we will have the most important applications built on Web3.
How to Analyze the Best Projects to Invest in the Bear Market
For Florian, Bitcoin remains his favorite asset in the whole digital ecosystem because the more he studies Bitcoin, the more his conviction grows. As for NFTs, he thinks they lack real business underneath them, that the only customers most NFT companies have are their investors and this is not sustainable because it makes NFTs look like a ponzi scheme.
“Before I invest in any project, I ask myself two questions. The first is, how is value being generated and the second question is, how does new money enter the system? ”— Florian Bruce-Boye, Founding Partner of Klio Capital
Florian's approach to investment, results in two investment strategies and they are:
1. Historical significance assets without execution risk: This entails investing in assets that have demonstrated a consistent historical performance with minimal execution risk. It involves selecting assets with a proven track record of reliable returns. These assets are usually the ones billionaires like to buy. They are the Rolex of the digital world. An example of an asset that falls under this category will be Crypto Punks, one of the earliest and most well-known NFTs.
2. Peak Media Brands: This investment approach for NFTs involves media brands and personalities that have reached a peak in their popularity. The value of an NFT associated with a media brand that has already reached its peak is more likely to appreciate over time. NFTs, generally, are a good tech platform to build IP (Intellectual Property). Florian predicted that in the next 10 years, 5 out of the 10 best IP projects will be birthed on NFT technology. Discovering and investing in those projects now will yield maximum returns in the long run. An example of an NFT under this category is VeeFriends, an NFT project by the famous Gary Vaynerchuk (also known as Gary Vee)
What's your Experience Investing in some NFT Projects in Crypto Winter?
In January 2022, Florian made a post informing people to be prepared for the crash. He was excited about the crash because, it was an opportunity for him to buy the dip. He knew the crash would happen because at that time most projects did not have value even though their prices were high.
“I wasn’t much affected by the crash but what affected me more was the sentiment people had about cryptocurrency after the crash”— Florian Bruce-Boye, Founding Partner of Klio Capital
The Peoples' excitement died down after the crash and Florian labelled this "a wrong mindset" because it revealed that most people did not have enough conviction about the technology. In spite of the whole situation, Florian still bought some NFT assets such as Crypto Punks, VeeFriends, and generative ads.
What Indicators can be used to Predict the Price Movement of Digital Assets?
Florian shared that it was very difficult to predict price movements within a short timeframe. Although, it is possible that if you see a lot of volume happening in the short term, you can assume the price will go up quickly.
Florian considers himself to be a long-term investor. He rather evaluates why people will buy any asset he plans to buy and asks himself questions like, "what do I believe now that will be successful in the future?"
“I don’t look at indicators. I pay attention to what I know now which other people will learn later and come to the same conclusion and then buy the asset”— Florian Bruce-Boye, Founding Partner of Klio Capital.
How will NFTs Solve the Difficult Onboarding Process we are Facing in the Web3 Space?
The biggest onboarding will be premium communities. One of the biggest use cases is for people and companies who have communities.
A musician no longer needs to take his music to Record Labels to market it. All he needs to do is to make lots of NFTs which might represent 20% of their revenue for life and when he becomes famous, his fans who had earlier invested in him will make lots of profits too.
“NFTs will help creators, artists, celebrities, and companies to create intimate relationships with their hardcore fans. So, if a majority of people create an NFT to build a better relationship with their fans, that will be the biggest onboarding coupled with tech being easier to access”— Florian Bruce-Boye, founding partner of the NFT Fund, Klio Capital.
Conclusion
Florian concluded the Zoom session by mentioning that the best way to start investing in NFTs and digital assets is through learning and belonging to communities. He advised participants to join a community of like minds where they can work together with others to review and invest in viable projects.
Token Researcher & DeFi Analyst Training
EkoLance is organizing a Token Researcher and DeFi Analyst training session to empower professionals with the knowledge and skills they need to become successful in the industry.
The 10-week training program will start on the 18th of April 2023 and it is designed to provide you with the necessary knowledge and skills to excel in the world of NFTs and digital assets.
Throughout the program, you'll gain a comprehensive understanding of tokenomics, including token design, distribution, and governance. Whether you're an experienced NFT professional or new to the field, this training session is an incredible opportunity to learn from experienced professionals and join a vibrant community of Token Researchers.
After the training, you will be able to work for institutional investors, asset management firms, banks, and blockchain companies. To enroll for this training, click here.
About EkoLance
EkoLance is a skill-training and recruitment company that equips you with the knowledge and skills needed to meet the specific requirements of your preferred career in the blockchain industry. In addition to providing skill training, we partner with global tech companies in finding and hiring qualified candidates from our talent pool.
To read the summary of our just concluded blockchain content creator training for professionals, click here.
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