Best NFT Trading Strategies by Arthur Hayes
The non-fungible token (NFT) market seems to be on everyone’s lips right now. Interested parties also include Arthur Hayes, former CEO of the BitMEX derivatives exchange, which today shared its top NFT trading strategies, noting that there are real opportunities if you can âput aside the fact that you are trading image filesâ.
In an essay written by Hayes and posted on the BitMEX blog, the founder and former CEO urged readers not to “let the enemies” distract them from the unique business opportunities the NFT market offers. Instead, NFT trading should be praised as “the ability to trade art the same way you trade stonks,” Hayes wrote, before summarizing why NFTs shouldn’t be ignored:
- âThey have a price.
- They have volume.
- The market is new and inefficient.
- The market is completely electronic.
- The market is completely transparent.
- Transaction costs are low.
Additionally, in the same post, Hayes also shared some of his best NFT trading strategies, including a value game dubbed “Rarity Relative Value”, a momentum strategy called “One to Many”, as well as a quick “Mint to Flip”. .
Specifically, for value strategy, Hayes suggested traders use a tool called Rarity.tool, which ranks the rarity of a certain NFT compared to others, for example, in the same series. According to Hayes, traders can then buy an NFT that is priced “at a discount to its scarcity,” in the same way some stock investors seek to buy the cheaper stocks in a certain industry.
Second, the âOne to Manyâ strategy is in many ways similar to the well-known strategies used by traditional art collectors, where they will exhibit their newly acquired pieces to the public or make them known in other ways. In the NFT space, Hayes noted that one way to do this is to âcultivate a relationshipâ with one of NFT’s top influencers on social media, saying:
âIf you buy a particular project you think an influencer would like, then somehow put it on their radar, and then they acquire or post on that projectâ¦ BOOM! “
However, perhaps the fastest way to get rich by following Hayes’ NFT trading strategies would be to follow the “Mint to Flip” strategy. Here, Hayes said that a trader should scan social media and chat rooms to try and find hot future NFT projects, then act quickly to capitalize on them:
âAs a pure gambler, your holding period may be a few hours or a few days. But anyway, you are speculating that the project will monetize the entire offering in a short period of time, “the former CEO wrote, adding” Soon after, you will be listing your NFT collection on OpenSea for several times. more than what you paid. them. Wham, bham, thank you ma’am for quick, sick, gainz.
Finally, Hayes in the post also referred to the strategy of splitting an NFT into tokens using tools like Fractional.art as a strategy that can be used by NFT traders to dramatically increase the value of their holdings.
This is the same strategy that this week has been used by the PleasrDAO NFT collective, which has so far resulted in a more than 100-fold increase in the implied valuation of the original NFT Doge meme.
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