NFT Flippers: Tales of Way and Triumph
In an unprecedented bull market where 65 percent of all secondary sales provide a profit, this is a good time to be a flipper. Enter any discord and you will hear stories of over 1,000 percent profit overnight. Even famous NFT owners are entering it; Steve Aoki, for example, Flipped his CryptoPunk # 6473 For a profit of 235 ETH per month (সেই 900,000 USD at that time).
Consider these figures from Chainlysis 2021 NFT report:
- 20% Username of OpenSea account for 80% of secondary NFT sales
- 5% of all active addresses account for 80% of secondary sales profit
- Collectors who mint NFT from a white list get 78% of the time
- The top 20% flipper on an investment basis invests in an average of 28 unique collections
Love it or hate it, flipping is a big part of the NFT industry. But even when money is flowing, it’s not all net positive. NFT needs to be flipped and time-intensive. It takes hours to market research, education and relationship building. To pile up Ethereum as much as possible, many have experienced deteriorating mental health and burnout. Others have made FOMO-driven investments and soon-to-be stable jobs, emotional, fuel-burning, life-changing decisions. Money can be lost as soon as it is made and the “hit rate” (percentage of profitable business) will take a significant push as the bull market inevitably fades.
We spoke with a group of successful NFT traders to learn more about the highs and lows of their flipping careers.
Note: The interview has been edited for length and clarity.
NFTS supply
“In February 2021, I started my NFT journey with about 5 ETH. I went from there to the whole of Degen. Like many in space, I have won massively and I have suffered massive losses. Fortunately my wins have exceeded my rate, and the airdrops have also been very friendly to me this year. I would say my overall NFT portfolio has grown 10-12x overall.
I was so lucky to be able to get into so many popular projects early on: I did a mint [Mutant Ape] And early on World of Women, Deadfellows, Danny Cole’s Creature World, and Guitar Cats which were good flips. I’d better hold on to some of the things I’ve flipped, but it’s hard to be upset when you gain and the backlash is 20/20.
My worst flip of all time was buying an M1 Mutant App Serum Top (at the time) at around 10.75 ETH. I held it and the price dropped to about 4 ETH. At the same time, a project called Dapper Dinos was very popular. I decided to take a loss of serum and use the funds to buy a bunch of dapper dinosaurs, if you look at the price of both floors, it is not good at all. It still stings today.
Even with the financial upheaval. NFTs have definitely taken a toll on my mental health and daily life. I am completely addicted to Twitter and my phone is constantly ringing in various group chats on Twitter, WhatsApp, Telegram and Discord. While chatting with IRL friends I am actively trying to survive more in this moment because right now, I am looking at my phone and paying more attention to what is happening with NFT.
I used to run and lift five to six days a week, a huge priority in my life. The NFT has now filled that space. I’m shutting down the gym to scroll through openness and Twitter which is obviously not a great thing. Even when I go to the gym I confuse myself. Missing even two minutes on NFTs is like missing two weeks in the real world!
My biggest advice is to invest what you want to lose. Personally I am all but, it brings a lot of conviction for the place. I would also recommend determining what type of investor you are before you enter a project. If you are aiming for a quick flip, always pre-disclose the profit. It’s easy to want to gamble to hit a big mint, but the floor stays the most fluid when pre-revealing flips. Reveal everything drop post. Let the dust settle and then start sweeping at a lower price with a profit from pre-release. The price is irrelevant if you are in a project for long term HODL. “
KidNFT
“My trading journey started with a topshot in December 2020. I was fascinated by the concept of digital ownership, so over the next few months, I started to really dive in and learn about the market. I started with about 1 ETH and bought a few projects like Cryptopops, which for the most part went to zero. I spent hundreds on gas and had little idea what I was doing – it was my ‘tuition’.
A few days after it went on sale in May 2021, I bought two annoying apps. I later flipped one of them for 18.5 ETH, which may have been a bad decision from a previous point of view, but that’s what forced me to go. Over the next year, I continued researching, learning, and purchasing the things I loved, and built a large portfolio through a mix of flipping and HODLing. To date, my portfolio has been doing quite well, and I still own a few top projects.
Even so, owning one is still beyond the reach of the average person. Around September 2021, I was very excited. The idea of constantly having FOMO and online 24/7 was no longer appealing to me, so I decided to take a step back and refocus.
The place has this constant feeling that you always have to make money – you have to accept that you can’t catch everything. I always try to capture my emotions and try not to waste time on social media, where your thoughts can easily be influenced by the feelings of the general public and the grass can always seem green. At the end of the day, we are all lucky to be here and to be a part of something like that. ”
Stringcheese.eth
“I started trading with about .5 ETH in August 2021, bought a random project that was being sealed on Twitter and immediately lost .3 ETH. I then reinvested a bit and traded up to 2 ETH where I bought another scam project. There was almost an ETH lost which crushed me.
After a few months of adding small quick flips, I’ve created 10 mutant cats that have moved to 2+ ETH which has given me enough fluidity. Then the bear hit the market and I tried to force a lot of drama. I lost an ETH every day for a week. Then my luck hit.
I created a rare Gold Can Budweiser, Neo Tokyo S2 Identity and a Reptile CloneX in a few days. Within a week, I flipped for 35 ETH alone and finished that weekend at 60 ETH.
Once your liquid is ETH, it’s easy to continue. My best flip was buying a rare dead cloneX for 25 ETH, a rare reptile for 20 ETH, holding for two weeks, and selling 100 ETH – in a package deal for a 55 ETH profit. Meanwhile, my biggest loss (unreal) is buying a legendary Karafuru at 18.18 ETH. Now, the current floor is 9 ETH and extremely liquid – a 10 ETH loss.
Being a short-term trader, there are also some flips that I would be better off holding. I made nine Azukis and sold 35 ETH for profit. A few months later everyone had a 35 ETH floor. Add 18 BEANZ from Airdrop and this is a 400 ETH fumble.
Mentally, both winning and losing on this scale are incredibly difficult to deal with. Highs and lows are impossible to predict and all upcoming mints and market prices are declining. Still, it’s the best job I’ve ever had and one of the funniest games I’ve ever played.
What I have learned is to see the moves of other traders better than you, always do your own research and never give up. Remember, the bull market is not permanent. “
Andrew Wang
“I am best known for my Cool Cat # 500, the upside-down cat. I bought it for 5 ETH when the cat was 40 per. I took it to the financial top, where I was getting seven-digit offers from celebrities like Mike Tyson. I didn’t sell it because it was a key part of my digital identity.
[During] The first week of Cool Cats, bored apps weren’t too valuable either. Someone offered me 11 rare apes for one of my cool cats. Once the monkeys ran up to 400 400,000 each, I was down millions for unrealistic gains. It was very difficult. I often refer to Jane’s theory of infinite remorse. It’s both interesting and terrifying at the same time. Now my mantra is ‘Today’s regret will not keep me away from tomorrow’s opportunity.’
Some people are really good flippers, others are better at occupying different roles in space. Ask yourself if you really want to do this and if so, be prepared for the emotional highs and lows. It takes a certain mentality to flip that is not for everyone. If you don’t care too much about it, don’t do it because you think you should. Choose a field of work that suits you and where you feel you are bringing the most value to yourself. “
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