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Related to this valuation: it's a marketplace. Putting aside my thoughts on NFTs themselves, is there data that suggests the marketplace itself provides enough

Related to this valuation: it's a marketplace. Putting aside my thoughts on NFTs themselves, is there data that suggests the marketplace itself provides enough utility to justify the valuation? Separately, I really do wonder if it's time that places like OpenSea borrow from traditional investment and provide some warning upfront. For example, modified from the traditional investment verbiage: > Investments in NFTs: Not FDIC Insured • No Bank Guarantee • May Lose Value. Investing in NFTs involves risks, and there is always the potential of losing money when you invest in NFTs.

raz32dust 5y ago
Amazon is a marketplace. Marketplaces are great businesses if you are early - they have strong network effect, are strong monopoly candidates and are not capital intensive.
paulgb 5y ago
In addition to being a marketplace, OpenSea stands to become the rubber stamp on an NFT that allows it to be used in other places (or have verified status when it is). Twitter seems to be going in that direction (for profile picture verification): https://twitter.com/thesmarmybum/status/1478505321433735169?s=21 https://twitter.com/thesmarmybum/status/1478505321433735169?... (The fact that using a central verifier seems to contradict what web3 is supposedly about is not lost on me)
CyrusL 5y ago
https://dune.xyz/rchen8/opensea https://dune.xyz/rchen8/opensea Yeah, this valuation is easily justifiable. First chart is OpenSea's monthly transaction volume. Multiply by 0.025 to calculate OpenSea's take.
- mritchie712 5y ago
  The first chart would concern me as an investor though. Crazy growth in the first half of 2021, then flat line (even down a few months).
enchiridion 5y ago
No need. You’re buying jpegs on the internet. Do we really need more litigious language to tell people it’s inherently risky? Just go on wallstreetbets, plenty of people use brokers who use such language to make let’s say… ill advised trades.

raz32dust 5y ago

Amazon is a marketplace. Marketplaces are great businesses if you are early - they have strong network effect, are strong monopoly candidates and are not capital intensive.

paulgb 5y ago

In addition to being a marketplace, OpenSea stands to become the rubber stamp on an NFT that allows it to be used in other places (or have verified status when it is). Twitter seems to be going in that direction (for profile picture verification): https://twitter.com/thesmarmybum/status/1478505321433735169?s=21 https://twitter.com/thesmarmybum/status/1478505321433735169?... (The fact that using a central verifier seems to contradict what web3 is supposedly about is not lost on me)

CyrusL 5y ago

https://dune.xyz/rchen8/opensea https://dune.xyz/rchen8/opensea Yeah, this valuation is easily justifiable. First chart is OpenSea's monthly transaction volume. Multiply by 0.025 to calculate OpenSea's take.

mritchie712 5y ago
The first chart would concern me as an investor though. Crazy growth in the first half of 2021, then flat line (even down a few months).

enchiridion 5y ago

No need. You’re buying jpegs on the internet. Do we really need more litigious language to tell people it’s inherently risky? Just go on wallstreetbets, plenty of people use brokers who use such language to make let’s say… ill advised trades.