In the next few weeks, one of the coolest metaverse projects is going to launch—or “mint”—a brand-new NFT.
And investors who are willing to purchase certain assets now can get guaranteed early access…meaning they won’t have to fight it out without thousands of other crypto investors for one of these NFTs.
This process is a tad complicated, though, so let’s start at the beginning…
NFTs, are I’m sure you’re aware, are non-fungible tokens. These are one-off, one-of-a-kind cryptocurrencies that represent ownership of a digital asset. NFTs have become a cultural phenomenon—and one that is making lots of early investors lots of money.
Before reading this alert, I’d strongly advise that you check out the two NFT reports I’ve prepared as part of Frontier Fortunes, if you haven’t already done so. These are: How to Invest in NFTs and The Frontier Fortunes Guide to NFT Wallets.
A few months ago, a new NFT project was launched called Yaku Corp. I’ve written to you about this project before. Yaku is an Asian mafia-themed gaming metaverse. (A metaverse is an online, 3D virtual world.)
There are three kinds of NFTs in the Yaku world. The first two have already been minted…meaning they’ve been launched and are now available to buy on secondary markets.
These are motorcycles and capsule apartments. Here’s what they look like:
Well, in late April or early May, Yaku will mint the third NFT in its trio: avatars.
There’s an opportunity in that, because there’s a way to get guaranteed access.
By grabbing a Yaku motorcycle and Yaku Capsule X on a secondary marketplace called Magic Eden, investors will obtain a “whitelist” token to mint one of the avatars.
What this means is that on a particular date (which is yet to be announced), the creators of Yaku will automatically identify every crypto wallet that has both a motorcycle and a capsule, and send to those wallets one of these whitelist tokens. Once you have one of those whitelist tokens in your crypto wallet, you get guaranteed early access to the avatar mint.
So, you don’t need to fight it out in the free-for-all public mint.
This is a great way to build the entire set needed for the game or to earn passive income.
By owning a capsule and a motorcycle, you can stake the motorcycle to earn $YAKU tokens. (Assets can be staked here.) You can also lease the bike to gamers when the game is released (probably later this year). And the avatar is necessary to actually play the game.
If nothing else, the avatar minting at 1.5 to 2 Solana ($175 to $230) will likely prove to be a bargain. I expect that avatars will sell in the secondary market for 7 Solana or more (about $800).
But even if you don’t want to mint an avatar, and couldn’t care less about play-to-earning gaming, there’s a trade opportunity here.
The value of the bikes and capsules are likely to rise as we approach the avatar mint.
NFT investors and gamers who want assurances of getting a whitelist spot are going to have to own both the bike and the capsule…and, so, we’re quite likely to see both of them rise in price over the next few weeks, particularly as the avatar mint draws closer.
As I write this, a floor-price bike is about 5.5 Solana (roughly $635 at time of writing). A floor-price capsule is about 7 Solana (about $805).
Both are likely to rise in value over the next few weeks. So, a savvy investor could buy them now, and resell them before the mint for a profit.
The other strategy is to own both, capture the avatar, then sell all three. That would work like this:
- Own both a bike and capsule for a combined investment of roughly $1,440.
- Hold those until Yaku Corp. takes a snapshot of all the crypto wallets that hold both NFTs.
- After the snapshot, both NFTs will drift lower in price as people sell. So you would want to list both near the floor price to recoup all or most of your money (or maybe lock in a small profit).
- When you get to mint the avatar, turn around and list it on Magic Eden and capture a price well in excess of your mint cost.
I would anticipate a return of at least 5 Solana using this strategy. That’s based on total sales of 19.5 Solana after an investment of 14.5 Solana (5.5 for the bike, 7 for the capsule, 2 for the avatar).
If those calculations hold up, investors would collect a return of more than 30% in just a few weeks. Not too bad.
Of course, NFTs are extremely volatile investments…nothing in this space is ever guaranteed. Accepting this volatility is part of investing in NFTs.
Key to all of this is following Yaku Corp. on Discord (which you can do here, or by clicking on the link on the official Twitter page here) and paying close attention to its “dao-announcements” channel.
Yaku will use this channel to announce when the wallet snapshot will happen.
Thanks for reading and I’ll be back again later this month with your next quarterly issue of Frontier Fortunes.
