Collecting a 39.5% Annualized Return…Just for Owning “Silly Pictures”

I don’t know how you’d feel about an extra $182.48 per month, but me, I’m pretty stoked. 

Particularly because I know that with high-yield savings accounts and certificates of deposit these days, the best return available barely flirts with 4.35%. And over on Wall Street, the typical yields on an S&P 500 stock (at least those that still actually pay a dividend) are between about 0.5% and, maybe, 5%, though they obviously carry a big ol’ dollop of market, economic, political, and corporate risk. 

On the other hand, that $182.48 per month…it equates to an annualized return of 39.5%. 

Now, just to get this out of the way here at the outset, I’m earning that monthly income by way of a handful of non-fungible tokens, or NFTs—crypto tokens that function a lot like shares of stock in that these digital pictures can represent partial ownership in an underlying business. 

That’s quite the accurate statement in this particular case because the NFTs distributing that $182.48 per month are successful businesses that are delivering: 1) online casinos/gambling sites, 2) a digital-payments platform, 3) an investment fund, and 4) technical support services for other crypto projects. 

Better yet, all have a history. They’ve been around for many months now, they’ve survived the bear market in crypto/NFTs, they’ve continued to grow, they have a history of regular payments (like dividends) to NFT holders, and all are going into 2023 in expansion mode. 

In the NFT space…that’s like finding a blue-chip, dividend aristocrat on Wall Street that comes pre-packed with a nugget of gold as a bonus. 

Before I go on…yes, just as with the stock market, crypto/NFTs have faced their fair share of dyspepsia of late. I give you pretty much the entirety of last year as my proof point. 

Still, investing here at the bottom of the market in survivors that have continued to build and grow—even as they drop money into my wallet weekly, bi-weekly, monthly, or quarterly—makes grand sense to me.  

The distributions these projects pay out come in the form of cryptocurrency. That means the income I earn at the bottom of the market is very likely to be worth a heap-load more as the new bull market takes to sprinting in coming months and crypto prices soar higher again. 

In most cases, I’m earning Solana, one of the most important cryptocurrencies today.  

Every Solana token I earn that today is worth $20 to $25 (its recent range) could see a 4x to 5x increase, or more, as Solana climbs back to $100 and above. 

Basically, I’m confident that the dividends I earn today are going to be worth a cumulative boatload tomorrow. 

And how much Solana am I earning? 

Well, based on the current payouts for seven, specific income projects I own, I’m picking up about 7.43 Solana every month. Given current prices for Solana, that’s the $182.48 that I’m hoovering up monthly. 

And I expect that number to soon push higher because one of the project’s plans to boost its distributions. I’m estimating that will increase my monthly payout to 11 Solana, or nearly $270.  

Let me tell you about one of the projects to show how the process works.  

But first, let me note that this is not a recommendation to rush out and buy this project. I have a particular strategy I use tied to crypto distributions that defines the prices I choose to enter and exit a project. Moreover, NFT distributions can fluctuate dramatically. So, there’s no guarantee that what I am earning today will be what I’m earning tomorrow. 

Instead, this dispatch is more of an exercise to show you what kind of income remains available in an NFT space that was hit hard last year and that the media has effectively written off as “silly pictures” and a dead-and-buried fad (very bad analysis and conclusion by the media, though entirely unsurprising). 

One of the income streams flows from a project called Degen Fat Cats, one of the true blue-chip income plays in the Solana space. It operates two incredibly simple wagering games: a digital coin flip to win or lose Solana, and a digital dozer game, similar to those real-world arcade games in which a blade moves back and forth, pushing on a pile of quarters. 

DFC, as it’s called, is seeing players spend about 140,000 Solana weekly (more than $3 million) on its two games. A big chunk of the profits that DFC earns on all the wagering is passed to NFT holders. 

To be clear, I own multiple NFTs for this project and for each of the projects paying out distributions (between two and 12 from each) which is why my income is up near $200 per month. If I owned just one of each project, my cumulative income would be about $53.61 per month. Not horrible. 

In all, I’ve invested just over $5,500 in all of these NFTs combined—40 in total in my income portfolio. Assuming my monthly distributions remain exactly $182.48 (and, again, it will fluctuate up and down), those NFTs are set to pay me an annualized $2,190…my 39.5% return. 

Acknowledging the very obvious risks that exist in the NFT space, that still beats what I can earn elsewhere.