7 ms·

Case in point: OpenSea's monthly volume: https://dune.com/rchen8/opensea https://dune.com/rchen8/opensea There's no hiding on the blockchain. Monthly volume ha

Case in point: OpenSea's monthly volume: https://dune.com/rchen8/opensea https://dune.com/rchen8/opensea There's no hiding on the blockchain. Monthly volume has gone down from a peak of nearly $5B in January to $372M in June so far.

go_elmo 4y ago
oooof.
santiagobasulto 4y ago
I see the point and I agree with you. But let me point out 2 things for the sake of being scientifically correct: * we're just at the middle of the month * the price has dropped 4x, those charts are in USD So comparing June (14 days) to Dec is not entirely fair. Your point still stands.
- puranjay 4y ago
  That's the problem - your expenses (salaries, rent, hosting, etc.) are paid in USD. Meanwhile, your revenue is in ETH. Even if you can maintain the same volume, your revenue can drop drastically if ETH price drops. A 100 ETH sale earns you 2.5 ETH. In January, this was worth $7.5k. Now, its worth $3k. Your revenue dropped by over 50% but your expenses are going to stay the same. I can't see how the economics of businesses like this can work out.
  - santiagobasulto 4y ago
    > your expenses (salaries, rent, hosting, etc.) are paid in USD. nobody (sane at least) would mix expenses and long term, high volatility investment as crypto. I own some crypto and I don't care today's price, it's a 10y investment.
    - puranjay 4y ago
      Except in this case, its unavoidable - unless your employees and landlords and hosting companies accept crypto. Your revenue will always be in ETH (or other native tokens). Your expenses will always be in USD (or local currency). Which is what makes this model unsustainable.
  - dopeboy 4y ago
    Unless you're immediately converting crypto to fiat.
    - puranjay 4y ago
      how does that matter in this situation? You get paid in ETH. ETH was $3k in January. Its $1.2k now. Ergo, your income is now $1.2k, not $3k since your fee is fixed.
timmg 4y ago
Those charts look way less dire than I would have expected. June isn't halfway through yet. So I'm not sure what to think of that. But prior to June, they had been doing ~$200M in "fees" monthly -- fairly consistently, for almost a year. That's more of a "business" (and more stable) than I would have guessed.
- CydeWeys 4y ago
  Most of those $200M in fees are Ethereum gas fees that are being burnt on-chain. Those aren't income for OpenSea, they're costs incurred by all parties as part of doing business.
  - giantrobot 4y ago
    Even then the dollar value is only the magic fantasy price you'd get if you could turn those coins into dollars but not affect the price by the fact of that sale.
    - puranjay 4y ago
      ETH has enough liquidity to easily absorb that volume tbh.
  - danuker 4y ago
    I suppose those fees would be the lower limit of the subjective value provided to the participants. Otherwise they wouldn't trade.
  - bbno4 4y ago
    I do not think they are gas fees, that wouldn't make sense. The description on that chart states: > Combined OpenSea and seller fees Opensea takes a % fee, and the seller takes a % fee. Can you prove it's also including gas fees?
  - puranjay 4y ago
    OpenSea's fees is 2.5% of each transaction. There's a creator fee on top of that which the creator can decide. It usually ranges between 2.5-7.5%. On average, you should assume that OpenSea takes around 30-40% from this 200M fees.

go_elmo 4y ago

oooof.

santiagobasulto 4y ago

I see the point and I agree with you. But let me point out 2 things for the sake of being scientifically correct: * we're just at the middle of the month * the price has dropped 4x, those charts are in USD So comparing June (14 days) to Dec is not entirely fair. Your point still stands.

puranjay 4y ago
That's the problem - your expenses (salaries, rent, hosting, etc.) are paid in USD. Meanwhile, your revenue is in ETH. Even if you can maintain the same volume, your revenue can drop drastically if ETH price drops. A 100 ETH sale earns you 2.5 ETH. In January, this was worth $7.5k. Now, its worth $3k. Your revenue dropped by over 50% but your expenses are going to stay the same. I can't see how the economics of businesses like this can work out.
- santiagobasulto 4y ago
  > your expenses (salaries, rent, hosting, etc.) are paid in USD. nobody (sane at least) would mix expenses and long term, high volatility investment as crypto. I own some crypto and I don't care today's price, it's a 10y investment.
  - puranjay 4y ago
    Except in this case, its unavoidable - unless your employees and landlords and hosting companies accept crypto. Your revenue will always be in ETH (or other native tokens). Your expenses will always be in USD (or local currency). Which is what makes this model unsustainable.
- dopeboy 4y ago
  Unless you're immediately converting crypto to fiat.
  - puranjay 4y ago
    how does that matter in this situation? You get paid in ETH. ETH was $3k in January. Its $1.2k now. Ergo, your income is now $1.2k, not $3k since your fee is fixed.

timmg 4y ago

Those charts look way less dire than I would have expected. June isn't halfway through yet. So I'm not sure what to think of that. But prior to June, they had been doing ~$200M in "fees" monthly -- fairly consistently, for almost a year. That's more of a "business" (and more stable) than I would have guessed.

CydeWeys 4y ago
Most of those $200M in fees are Ethereum gas fees that are being burnt on-chain. Those aren't income for OpenSea, they're costs incurred by all parties as part of doing business.
- giantrobot 4y ago
  Even then the dollar value is only the magic fantasy price you'd get if you could turn those coins into dollars but not affect the price by the fact of that sale.
  - puranjay 4y ago
    ETH has enough liquidity to easily absorb that volume tbh.
- danuker 4y ago
  I suppose those fees would be the lower limit of the subjective value provided to the participants. Otherwise they wouldn't trade.
- bbno4 4y ago
  I do not think they are gas fees, that wouldn't make sense. The description on that chart states: > Combined OpenSea and seller fees Opensea takes a % fee, and the seller takes a % fee. Can you prove it's also including gas fees?
- puranjay 4y ago
  OpenSea's fees is 2.5% of each transaction. There's a creator fee on top of that which the creator can decide. It usually ranges between 2.5-7.5%. On average, you should assume that OpenSea takes around 30-40% from this 200M fees.