We are still early, learning, growing with u guys since january 2023
BAYC floor price at 30ETH
reminded me on how i taught my EX-girl friend about
- 📍 Arbitrage trading
- 📍 Traps of NFT investing
using Chanel Bag investing as example
N why she is an EX girl friend 🤡
Flash back $JPY was dropping like a shitcoin
My EX demanded to go japan (even in the bear market rekt)
So we bought some JPY at the low
We went to handbag shopping to explore Chanel
Before going into this, my EX never understood why people wanted NFTs n whitelist so much.
If u are a crypto native but not simp like me let me explain how the handbag game works
Exclusive handbags are only for cool high end customers, with limited supply
u can start buying a few over price items so u have enough reputation to buy the handbag u want
But wait.. sometimes the sales is feeling generous n let u buy one if she thinks u are a collector
Sounds familiar? Dear NFT degens? this is whitelist
Why do girls ape into bags if in chanel shops?
because u will mint a BAYC whitelist thinking u can sell it for higher
or u are a "collector" (good for u bro)
Anyways since the bag sales person was so generous to give us this whitelist, we end up minting that that Chanel bag.
Like most NFT addicts, primary minting is just the start, we gotta speculate secondary on market place
We end up browsing those brand new second hang bag shops.
We notice there is price difference between secondary bags in Japan & Hong Kong
My EX decided to be a "Arbitrage trader"
GF:
Hey there is a 10% price difference between chanel bags in japan n Hong Kong.
OMG we are going to be rich n u can thread about it in ur little account
What is Arbitrage trading
buy from 1 place, sell for higher for price difference between 2 markets
Lambro:
Babe are u sure u can arb chanel bags, it is a very popular market
have u taken account in cost/ friction?
Lets list the cost
- Trading cost HKD > JPY
- Travelling to buy bag (assume not including it)
- Listing price/comission to HK second hang bag shop
GF:
Ok babe seems not much room for the popular handbags but for the special ones the price difference seems big
Lambro:
This is because of liquidity, there might be not as much people that wanted these special bags in a way u are taking more risk n u end up not able to sell the bag.
GF:
if we can't sell the bag, its ok. chanel bags price only goes up anyways!
Lambro:
So u want to long $chanel? because the brand is good, demand is high n supply limited right?
GF:
i like the bag n i want it anyways, is not just about the money
like u crypto bro say hodl hodl hodl
We bought JPY cheap anyways
Lambro:
Sure babe
In my head
if u really wanted profit why not just sell JPY n take profit
N I thought to myself
one ETH is one ETH
one EX GF is just another one EX
so i cut lost, sink cost anyways
N this story is totally make up,
why would u ever think i can get a girlfriend?
🪤 Traps of NFT investing
I have nothing agasint NFTs, in fact i want to mint something cool n be part of a cool community n meet friends
But u should seperate investings & spending
Always a clear framework on what are u doing.
Buying to sell or Buying as a spending
If u wouldn't spend that amount on clothes, watches than u prob shouldn't buy that NFT
If u are investing, are u really a truly god tier investor that is timing the bottom of NFTs in a down trend market?
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