Earning a 12% Return From My New Cat

I bought a cat. 

It’s not what you think. 

My cat is a degenerate. 

He’s also fat. 

I have a fat, degenerate cat. 

Basically what I’m saying is that this week I bought a Degen Fat Cat. 

Amid what remains a fairly crummy investment landscape, I once again waded into the crypto market to buy a high-quality, income-producing NFT, or non-fungible token—a digital asset that acts a lot like a share of stock in that it often represents a very real business serving very real consumers. 

In my case, my Degen Fat Cat is serving gamblers addicted to the simplest of betting propositions: a coin flip. 

Heads or tails. 

Win or lose. 

This is my Fat Cat: 

I assure you that under all that gladiator gear is a fat, degenerate cat. 

In the last week alone, the Degen Fat Cat website has hosted nearly 150,000 coin flips. Since this project started up about a year ago, the Fat Cat website has hosted more than 90,000 users who have wagered 2.3 million Solana (a cryptocurrency fueling the flips) in 7.7 million coin flips. 

Gamblers plunk down a bit of Solana, and if they win they pocket more Solana. 

Lose and…well, you understand a coin flip. 

But here’s why I care about any of this: With every coin flip, my Degen Fat Cat earns a little kibble that ends up in my pocket in the form of crypto “dividends.” I don’t have to wager on anything. All I need is to own my Fat Cat and I get paid. 

At the moment, my Fat Cat is earning the equivalent of roughly 12% per year on my cost price. That’s certain to rise because A) the number of coin flips is rising, and B) the Fat Cat team has recently released a second game called Degen Coin Dozer, a crypto version of that arcade staple in which you drop a quarter into a machine and a bulldozer-like blade pushes it forward in hopes of knocking more quarters into the winner’s tray. 

To me, Degen Fat Cats represents one of the beauties of the NFT space: sustainable income tied to a human vice—gambling. 

It also represents an opportunity at this particular moment. 

All across the cryptosphere, prices for high-quality assets are selling at after-Christmas clearance-sale prices. There was a time before the bear market growled to life when Degen Fat Cats were fetching nearly 500 Solana. And that was at a time when Solana itself was fetching about $35…so the NFT was valued in the $17,500 range. 

I bought my Fat Cat for less than $500. 

I’m not implying this will be a round-trip back to more than $17,000. But I am not not saying that either. Instead, I’m saying that at $500, a Fat Cats NFT is, to me, a steal. The project has already demonstrated its success. It’s generating income for NFT holders…and as Solana prices rise, so too will the NFT simply because the value of the income is going to rise. 

I mean, if Solana returns to all-time highs of about $250, then a Fat Cats NFT, based on its existing payout, would be yielding the equivalent of nearly $3,000 per year. There’s no way the market allows the NFT to remain priced at under $500 when the annual income is 6x that level. In that case, the NFT would very likely push back toward $7,000 to $10,000 just because of the income it spins out. 

I can’t say when that might happen. All I can say is that I have a lot of faith in NFTs like Fat Cats because of their growth profile and because I know cryptocurrencies are going to experience a violent rebound. When that happens, income-producing NFTs such as Degen Fat Cats are going to be riding a powerful tailwind.  

The amount of income NFT owners collect will surge, as will the underlying value of the NFT itself. 

Thing is, Fat Cats isn’t the only opportunity. I’ve been judiciously cherry-picking three or four projects in recent weeks. Fat Cats is just the latest example. 

When I mention this to my friends, they are both dismissive and oddly curious. They don’t trust the crypto market (for reasons I understand), yet they see that I continue to make money at this, even in a bear market. And they see that companies like Nike, Walmart, and others continue to invest tens of millions of dollars in the NFT space.  

Those friends are slowly, if grudgingly, coming to the realization that crypto and NFTs are going to be a very big part of our daily future. None have taken the plunge to invest alongside me, primarily because they don’t understand how to buy/sell/trade NFTs, and their fear of screwing up keeps them on the sidelines. 

Understandable. 

But as I routinely tell them: Learn how to trade this market now. It will put you ahead of the crowd. And “ahead of the crowd” is where you’re going to turn into your own fat cat when the bull market inevitably and assuredly returns.