The ability to negotiate is what makes the NFT world so fun!
Instead of just buying cryptocurrencies at the current ‘market price’, with NFT’s, ‘market price’ differs person to person.
The same person might pay 1 Eth for a Gods Unchained card compared to another person willing to pay 0.5 Eth.
Liquidity isn’t as simple as listing and getting an instant sale like on an exchange, often times you have to continue re-listing and lowering the price until someone bites.
What’s the Opportunity?
This creates tremendous opportunity for people with a good negotiation strategy. Those that can treat this like a real business, with disposable money to spend/burn learning the ropes and eventually find a process that works for them.
In my experience, the more money you have, the more opportunity you will be able to capitalize on.
The problem with having a large NFT portfolio is, at the time of needing to cash out, there is only a handful of people with the disposable Eth or Fiat to buy.
Not many are willing to dish out $50k USD to buy your Decentraland Portfolio even if it’s worth $70k! This leave AMPLE opportunity to those that DO have this much $ and understand the market enough to mitigate risks.
This is one of my biggest advantage and is why I keep ahead of researching the NFT on a MACRO level. To protect myself of any upcoming risk and spot trends to spend the bulk of my liquid money.
How to Implement this Strategy
First, understand the more you spend in the NFT space, the more risk you expose yourself to.
NFT’s, just like crypto or I’d even say more, is an extremely risky and volatile space. You could lose everything if you’re not careful or even if you are certain things will go right.
Understanding this, your goal is to buy digital assets lower than current market value.
Lets’ use Decentraland as an example.
The cheapest land on the Decentraland Marketplace at the moment is 11,900 MANA, ($430 USD at current MANA rates).
This gives us indication as to what price to buy lands at BUT we’re not done researching yet.
Let’s look at ‘sales history’ on nonfungible.com.
Notice we have plenty of land selling at a healthy 10,000+ MANA with the first one at 9,900 MANA. Nothing special about this land, not connected to any roads, any districts, or central. It’s quite far and not connected to anything.
That way we can confirm that if you were to list any land for around 9,500 MANA you can sell it quite instantly. So what’s the plan?
The plan is to buy in bulk, lands that are well under 9,900 MANA.
Imagine if a 50 piece land owner wants to sell his whole portfolio. Usually sellers will list on the marketplace for a much higher value then it’s worth. but if you come and offer them a bulk price of say…8-9,000 MANA per land, they can have the money for bills, another project, or whatever else they want the money for and you can sell it on the marketplace for 9,500+ MANA.
Usually a lot more than this but we’re being conservative.
There is Opportunity Everywhere
It’s not just Decentraland where large sellers need liquidity. This is true for many early large investors of multiple projects.
That’s why, for someone who understands the NFT space well, with more projects opening soon, we’re going to see whales who can negotiate eat up the marketplace.
The time is now to learn and hone your skills to take advantage of much larger projects to open up on blockchain.
Check out the Negotiation Tutorial for more info on this topic.