Interview: Realizing added value with an NFT on Binance

Like them or not, NFTs are growing in popularity, despite the recent downturn in the cryptocurrency market. That said, contrary to what one might think, it is not necessarily easy to get one. From one person to another, the journey from idea to realization can be particularly complex. Moreover, these challenges are not necessarily due to technical incompetence. Indeed, in addition to determination, you have to be patient and, above all, plan a relevant strategy to optimize your investment. This reflection is all the more important in a speculative context. In this article, Jean-Michel, a cryptocurrency enthusiast, shares his personal experience of buying and reselling NFTs on Binance.

How did you discover the product/project?

It was a mystery box for sale on the marketplace Binance NFTs. It had been announced 2 or 3 days before the launch date. Previously, I had scoured the platform several times in search of INO, initial launch offers dedicated to NFTs. I had missed two of them, as I had participated in the various lotteries without obtaining the rewards. This time the scenario was a little different. There was no need to show up in advance. Mystery boxes were available in limited numbers and you only had to buy them as soon as they were introduced to the market.

Why do you think this project was a good investment?

At first glance, there is a lot of excitement around Binance NFTs. At the time, it had been about a month since any projects had been launched on the exchange. Whether mystery boxes or IGOs ​​(Initial Gaming Offering).

This product was the result of a collaboration with a renowned Swiss watchmaker. In addition, the prizes contained in the mystery boxes were particularly attractive, including trips to events in Dubai, Singapore, Geneva and New York. There were also freebies such as watches and other usable items in the metaverse.

Typically, most mystery box rewards are pretty mundane and not worth much. So I thought this project would generate a lot of interest. Especially since the gifts came from different sectors: watchmaking, Web3, gaming and fashion. I felt this would potentially increase the number of interested people.

How was the purchase of the NFT?

To get started, I went to the event page on Binance. Then I went to see how many packs had been sold at startup. I went back 2 or 3 hours later to try to get a better overview of the situation. After a few hours, there were less than half of the packs left to buy. So I thought it was time to take the plunge. Finally, I made my payment in BUSD, the stablecoin from the exchange. The box was later transferred to my wallet Binance NFTs. That said, during the purchase process, it is not possible to list the Mystery Box immediately. You have to wait 12 or 24 hours depending on the conditions set by the platform.

What was your basic strategy? What time horizon is your purchase based on? Did you only have profitability objectives?

My goal was not to open the mystery box and just resell it. Because as I said, there’s a lot of excitement around these events. And obviously, not everyone can be served. So my goal was to speculate that someone who couldn’t get the pack at launch might want to buy it later for an extra charge. Indeed, I only had in mind a very short-term speculation, as soon as the possibility of listing the boxes would be offered. Therefore, one day after the event, I put the gift box up for sale at a very high price. Just to see and familiarize myself with the sales mechanism. I left my sell order active for six days. That said, the pack was of course not purchased since the price was far too high. So I watched the market again to see how much the boxes were trading for. Then I set a relatively reasonable price – double the purchase price – and opted for an auction. I felt this would be a great way to sell my mystery box.

Why did you sell?

Simply because I planned on doing it. Moreover, I think that directly after the launch, the public is always more enthusiastic. Whereas if you sell a month later, there is less chance of finding a buyer. When I saw that I could resell it for 2.5 times the purchase price, I quickly confirmed the transaction.

What is remarkable in Jean-Michel’s story is not the gain he made, but the need to define a strategy before undertaking any investment. This is about setting a goal, determining sales scenarios and ensuring that we maintain a consistent course of action based on market trends. Moreover, Jean-Michel puts his finger on a crucial problem for the democratization of NFT: the banality of the existing offer.

If NFTs are gaining in popularity, ordinary mortals still have trouble understanding their usefulness. Critics argue that this is a fad with no real value. On the other hand, enthusiasts claim that it is a great tool for social connection and showcasing creators. Either way, improving the global value proposition could only be positive.

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