{"id":1049,"date":"2021-12-07T16:01:43","date_gmt":"2021-12-07T16:01:43","guid":{"rendered":"http:\/\/egrowonline.com\/?p=1049"},"modified":"2021-12-07T16:01:43","modified_gmt":"2021-12-07T16:01:43","slug":"nft-natives-are-dominating-the-market-chainalysis-report","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=1049","title":{"rendered":"NFT Natives Are Dominating the Market: Chainalysis Report"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"\">\n<section class=\"article-key-takeaways\">\n<h3>Key Takeaways<\/h3>\n<ul>\n<li>Chainalysis report published Tuesday found that whitelisted investors significantly outperformed non-whitelisted ones.<\/li>\n<li>The report also indicated that investors flipping NFTs with prior sales history saw a much higher success than non-whitelisted investors participating in minting events.<\/li>\n<li>Interestingly, the most successful NFT investors didn&#8217;t have a higher hit rate but instead traded more often paid a higher average price per NFT.<\/li>\n<\/ul>\n<\/section>\n<section class=\"article-share top\">\n<h4>Share this article<\/h4>\n<\/section>\n<p><span style=\"font-weight: 400;\">It\u2019s almost impossible to make outsized gains on newly-minted NFT purchases without being whitelisted, Chainalysis said in their latest NFT market report.<\/span><\/p>\n<h2><b>You\u2019re Either In, or You\u2019re Out<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">According to the latest NFT market <a target=\"_blank\" href=\"https:\/\/go.chainalysis.com\/nft-market-report.html\" rel=\"noopener noreferrer\">report<\/a> published Tuesday by renowned data analytics firm <\/span><a target=\"_blank\" href=\"https:\/\/cryptobriefing.com\/fincen-appoints-former-chainalysis-cto-acting-director\/\" rel=\"noopener\"><span style=\"font-weight: 400;\">Chainalysis<\/span><\/a><span style=\"font-weight: 400;\">, whitelisted non-fungible token (NFT) investors saw dramatically better investment returns than those who bought newly-minted NFTs on the secondary markets.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Namely, <\/span><a target=\"_blank\" href=\"https:\/\/cryptobriefing.com\/opensea-ipo-plans-met-with-criticism-from-nft-community\/\" rel=\"noopener\"><span style=\"font-weight: 400;\">OpenSea<\/span><\/a><span style=\"font-weight: 400;\"> data showed that whitelisted investors who sold newly-minted NFTs profited 75.7% of the time, versus 20.8% for those who didn\u2019t make the whitelist. Additionally, the data suggested that it is almost impossible for non-whitelisted collectors to achieve outsized returns on newly minted NFTs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whitelisting is a common practice leveraged by new NFT projects to build interest in their collections. It typically involves allowing a select set of early and dedicated followers to purchase NFTs at a significantly lower price than other users during minting events\u2014when the digital files are turned into NFTs on the blockchain. Those who make it on the whitelists are typically followers who\u2019ve been active on the project\u2019s Discord servers or helped promote the collections on Twitter.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe data is clear,\u201d Chainalysis said, \u201cwhitelisting provides a significant financial reward for those who play a role in an <\/span><a target=\"_blank\" href=\"https:\/\/cryptobriefing.com\/nft-project-spotlight-quantum-the-nft-photography-launchpad\/\" rel=\"noopener\"><span style=\"font-weight: 400;\">NFT<\/span><\/a><span style=\"font-weight: 400;\"> project\u2019s success by seeding its early community growth efforts.\u201d Overall, 78% of non-whitelisted buyers lost more than half of their initial investment after selling their newly-minted NFTs. On the other hand, 78% of insiders who made the whitelist profited upon resale, doubling their initial investment more than half of the time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, the data examined by Chainalysis indicated that investors flipping or reselling NFTs with prior sales history saw a much higher success rate than those participating in minting events. Namely, 65.1% of the users following this strategy made a profit on 65.1% of resales.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unsurprisingly, experienced or more sophisticated investors made the most profits from NFT flipping. According to the report, 20% of users on OpenSea accounted for 80% of secondary NFT sales, while just 5% of the users accounted for 80% of profits made on reselling.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When it comes to trading NFTs with prior sales history, the group of investors who did the most flipping accounted for 85% of the profits. Also, investors who paid a higher average price per NFT significantly outperformed those who traded cheaper NFTs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The final and perhaps most interesting finding in the report is that the most successful NFT investors didn\u2019t have a significantly higher hit rate than others. Instead, they flipped more NFTs, with a higher average price per trade at a similar hit rate to the less successful group.<\/span><\/p>\n<p><em>Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.\u00a0<\/em><\/p>\n<section class=\"article-share bottom\">\n<h4>Share this article<\/h4>\n<\/section>\n<section class=\"article-footer\">\n<div class=\"disclaimer\">\n<input type=\"checkbox\" class=\"disclaimer-toggle\" id=\"disclaimer-toggle-103748\"\/><\/p>\n<div class=\"disclaimer-content\">\n<p>The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.<\/p>\n<p>You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.<\/p>\n<p>See <a target=\"_blank\" href=\"https:\/\/cryptobriefing.com\/terms-and-conditions\" rel=\"noopener\">full terms and conditions<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/section>\n<section class=\"recommended-posts\">\n<div class=\"section-content\">\n<div class=\"posts-list\">\n<div class=\"post-item \">\n<a target=\"_blank\" class=\"article-url\" href=\"https:\/\/cryptobriefing.com\/nft-project-spotlight-quantum-the-nft-photography-launchpad\/\" rel=\"noopener\"><\/p>\n<div class=\"info\">\n<h3 class=\"title\">NFT Project Spotlight: Quantum, the NFT Photography Launchpad\u00a0<\/h3>\n<p>\nQuantum is showcasing top talent from the art photography world through NFTs on Ethereum. While the platform is still in its infancy, demand for Quantum-curated collections is growing fast.\u00a0 What&#8230; <\/p>\n<\/div>\n<\/div>\n<div class=\"post-item na-item\" data-na_id=\"98320\" data-na_location=\"recommended\">\n<a target=\"_blank\" class=\"article-url\" href=\"https:\/\/phemex.com\/academy\/what-is-rarible-nft\" rel=\"noopener\"><\/p>\n<div class=\"info\">\n<h3 class=\"title\">What is Rarible: A DAO for NFTs<\/h3>\n<p>\nWhat was once dismissed as a silly and expensive sector,\u00a0NFTs\u00a0give creators access to global markets in a way that\u2019s never been possible before, and it\u2019s all thanks to blockchain.Those familiar&#8230; <\/p>\n<\/div>\n<\/div>\n<div class=\"post-item \">\n<a target=\"_blank\" class=\"article-url\" href=\"https:\/\/cryptobriefing.com\/opensea-ipo-plans-met-with-criticism-from-nft-community\/\" rel=\"noopener\"><\/p>\n<div class=\"info\">\n<h3 class=\"title\">OpenSea IPO Plans Met With Criticism From NFT Community<\/h3>\n<p>\nFormer Lyft CFO Brian Roberts has joined OpenSea and plans to take the company public, but many members of the NFT community disapprove.\u00a0 OpenSea Planning Initial Public Offering One of&#8230; <\/p>\n<\/div>\n<\/div>\n<div class=\"post-item \">\n<a target=\"_blank\" class=\"article-url\" href=\"https:\/\/cryptobriefing.com\/fincen-appoints-former-chainalysis-cto-acting-director\/\" rel=\"noopener\"><\/p>\n<div class=\"info\">\n<h3 class=\"title\">FinCEN Appoints Former Chainalysis CTO as Acting Director<\/h3>\n<p>\nFinCEN has hired the former CTO of Chainalysis to be its acting director. The move indicates that the agency is adding more talent to focus on the burgeoning crypto sector&#8230;. <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/cryptobriefing.com\/nft-natives-are-dominating-the-market-chainalysis-report\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Chainalysis report published Tuesday found that whitelisted investors significantly outperformed non-whitelisted ones. The report also indicated that investors flipping NFTs with prior sales history saw a much higher success than non-whitelisted investors participating in minting events. Interestingly, the most successful NFT investors didn&#8217;t have a higher hit rate but instead traded more often [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1050,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[39],"tags":[1083,1082,219,1081,307,146],"class_list":["post-1049","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ico","tag-chainalysis","tag-dominating","tag-market","tag-natives","tag-nft","tag-report"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2021\/12\/Chainalysis-report-Cover-768x403.png","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/1049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1049"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/1049\/revisions"}],"predecessor-version":[{"id":1051,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/1049\/revisions\/1051"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/1050"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1049"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}