3 Valuable Insights Into The Mindset Of NFT Whales

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In 2021, the NFT industry saw a tremendous rise. This trend is likely to continue into 2022. It’s worth taking a closer look at the approach whales and other large traders take to the market. The DappRadar team recently analyzed Wilcox, Dingaling and Pranksy’s trading behavior and wallets.

A good start to 2022 for NFTs

Despite the bearish crypto market in the first seven week of 2022, NFTs are still very popular with whales and other traders. NFTs are seen by some users as a way to store value as crypto assets like Ethereum and Bitcoin become more volatile. This is evident when you look at the trading volume of non-fungible tokens.

DappRadar reports that the total volume of the LooksRare market has exceeded $22 billion. This is quite a staggering amount, though there are concerns about potential wash trading on LooksRare. The $6.7 billion volume, excluding the marketplace, is still impressive. It is worth looking into NFT whales in detail and how they will approach this market vertical in 2022.

An NFT whale, like cryptocurrency whales will have a specific trading strategy in order to maximize its profits. DappRadar’s report on NFT whales includes Pranksy and Dingaling. Pranksy has over 32,000 NFTs worth more than $120 million. Dingaling holds over 3,600 NFTs and more than 100 BAYC assets, which are worth over $53 million.

Wilcox invested primarily in CryptoPunks, Meebit and other NFTs, amassing more than 1,200 NFTs worth $66.7 million. Wilcox seems to be less interested in flipping than Pranksy. This confirms a completely different approach to making money using NFTs.

Virtual Worlds are in High Demand

Web3 implications have given NFT industry a lot of attention. The acquisition of virtual land in The Sandbox or Decentraland, Somnium Space or other environments is increasing rapidly. Pranksy has flipped over 500 Sandbox plots in the last half-year, and all three NFT whales have dabbled in virtual land plots. This user also has NFT Worlds plots and apartments in WorldWide Webb. Decentraland NFTs are also held by this user.

Dingaling is a new way to approach virtual worlds. It invests in avatars and related projects. The user owns over 150 VoxoDeus and 150 VoxoDeus as well as 17 RTFKT Clone-X. Dingaling also owns a large Sandbox and Decentraland parcel, as well as other NFTs. NIKE, Inc purchased the RTFKT studio, which was focused on fashion and design, in late 2021.

Wilcox also expressed an interest in metaverse avatars derived from different projects. The holdings include Sandbox Voxels, CryptoVoxel Land, Meta Key NFTs and CyberKongz VX. This NFT collection generated more than 30,400 ETH in trading volume alone on OpenSea, which confirms the overall demand to own a random 3D NFT social avatar.

Even whales have fake NFTs

Fake NFTs can trick users into believing they are buying NFTs that have profit potential. This concept also applies to our whales, even though you would expect them not to fall for such traps. Pranksy has 4,700 counterfeit Adidas NFTs linked to their wallet address. The user never issued any. Wilcox and Dingaling also have counterfeit Adidas NFTs. However, they are not their own fault.

Fake and counterfeit NFTs are likely to be associated with whales in the near future. To gain legitimacy and trick others into minting these non-fungible tokens, scam projects will seek to be associated with these wallet addresses. It is easy to find the address of an NFT whale. Anyone can send tokens, currencies or NFTs anywhere on the network.

Larva Labs and New Project Exposure

Larva Labs is the creators of CryptoPunks and Meebits as well as Autoglyphs. They are by far the most prominent entity in the non-fungible token market. Their collections are also of great interest for whales, even though our three different approaches to collecting them are very different. It is great to see other strategies being used, and there are many more collections that are worth exploring.

  • Wilcox: A CryptoPunk and Meebits whale, with 246 units and 281 respectively
  • Dingaling is a neutral approach that involves holding 3 CryptoPunks, and 20 Meebits. Bored Ape Yacht Club’s overwhelming interest seems to indicate a more positive sentiment towards Yuga Labs.
  • Pranksy: There were no CryptoPunks, and they sold 96 Meebits on August 2021. They left one Meebit in the wallet.

Whales are known to support new and upcoming projects. It is important to support new projects as it allows the NFT industry to grow and expand. Killer GFs and CryptoBatz are just a few of the new projects that have been spotted by whales.

Closing Thoughts

DappRadar’s research into these issues provides valuable insight into NFT whale behaviour. This also shows their differing approaches to different projects, no matter how established or new. NFT whales need diversification, as is cryptocurrency whales. There are many exciting parallels between their approaches.

The metaverse is gaining more attention, which shows that it is an important industry to be focused on. Land plots are still a popular choice to explore. It is important to monitor new projects even though all three whales seem to be investing in the same ones for the most part.

Disclaimer: This article is intended for informational purposes only. This article is not intended to be used for legal, tax, investment or financial advice.

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