In recent weeks, the crypto world has come under intense pressure in the wake of the FTX fraud/collapse. Cryptocurrencies and non-fungible tokens (or NFTs) have seen significant price declines.
If you believe the mainstream media, you’d think the crypto world had come to a complete halt.
But that’s not the reality…because behind the scenes, the builders are still building and the investors are still investing.
This is the story of a few of them—builders for a project called Future Traders, and an investor you know…me.
First, just to remind you what NFTs are all about: These tokens are a form of cryptocurrency you can actually see, though not necessarily hold. It’s digital art, behind which you’ll often find real companies making real products or offering real services for consumers and businesses.
In many ways, the NFT is like the 21st-century version of a stock certificate. It’s an image that denotes rights that the owner processes, like partial ownership of a company.
With our story today and the NFT we’re going to talk about, the benefit to the NFT holders is income.
Something like a dividend payment.
Only different.
Because instead of an investor collecting a bit of money only after the business pays all its bills and all its employees, investors in this NFT project, called Future Traders, will collect 100% of the company’s revenue.
In effect, NFT owners are like the owners of a small business in which there is no overhead to pay, just profits to reap.
How is that possible?
The company makes its money by keeping 10% of the 15,000 NFTs it releases. Future Traders, thus, will be invested right alongside other NFT holders and generate income from the NFTs it owns.
Sounds crazy. But welcome to the new age and the new opportunities that exist in NFTs.
The service behind this 100% revenue stream is options trading on NFTs. It’s no different than the options-trading services on stocks that Wall Street brokerage firms such as Fidelity, Charles Schwab, and others offer.
This is the NFT, though the team hasn’t revealed the image yet:
I tell you all of this to show you that even in the midst of a crypto downturn, the visionaries keep on doing what they do best…building toward the future.
And those of us who see that future, eagerly dive into these new projects at absolutely ridiculous prices. I mean, I own contracts (particular types of NFT tokens) what will become three Future Traders NFTs next week, and my all-in cost was just $300.95—basically $100 per NFT…for rights to share in the entire revenue stream of an options-trading business that will very likely see demand very quickly in the cryptosphere.
But this is where wealth always springs forth—in the depths of a crisis.
It never springs forth at the top of a bull market. Alas, it’s the top of a bull market—when everyone is raving about the money they’re making by investing in X—that universally represents the worst time to be an investor.
The risk is high at that point, and the reward low, because the easy money has already been made.
Conversely, a downturn is statistically and historically the very best time to be a buyer of high-quality assets, particularly those that generate an income.
That’s why I have been a buyer of a few very specific NFTs over the last month, including the rights to buy those three Future Traders next week.
I’ve talked to the teams. I met one of the founders at a crypto conference in Portugal earlier in the month and, hearing some inside news on what they’re up to, I immediately added one of their NFTs to my portfolio.
We are certainly in a challenging moment for crypto. I understand why people have washed their hands of it.
Still, that’s a mistake.
And I’ll underscore that by mentioning these names: Microsoft, Airbnb, Revlon, General Electric, Disney, and Sports Illustrated.
The connection?
Every one of those companies launched amid a recession or depression.
Builders build, even when the environment around them is tough.
And investors invest, knowing the future will be bright again soon enough.
So, as I am telling my friends these days: You can sit on the sidelines and wait for the next bull market…or you can invest now so that when the next bull market arrives, you’re already making money before others even realize the bull has begun.
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