Brazilian Pedro Novaes, an investor in the cryptocurrency market, has already had 3 NFTs from the Bored Ape collection in his wallet. During college, still in 2007, Pedro started trading on the stock exchange and believes that this experience was important to open his eyes to similar opportunities.
In 2013, he met Bitcoin and found it difficult to understand what the technology was at that time. He even bought some coins for US$ 1,000, but without understanding, he soon sold everything.
“I couldn’t understand at the time, I didn’t have the dimension of technology”.
In 2017, a friend asked him if he was watching the cryptocurrency market and he denied that he was involved. However, out of curiosity, he looked to see the Bitcoin chart and, as a trader on the exchange, saw a great buying opportunity with the quote at $5,000.
Pedro recalls that in these different buying movements, the Dollar varied. At the height of the market, he got to know other currencies such as Ethereum, Dash, Nano and others.
As an experienced stock speculator, the strong swing of altcoins ended up catching your attention. Despite this, in 2018, he saw in his analysis that the market was in a downtrend and moved away from the space again.
Money printing from Central Banks took Brazilians back to Bitcoin
After leaving the cryptocurrency market twice, Pedro Novaes told the Livecoins who was studying in 2020, when he saw a troubling news. According to him, the printing of money by central banks led him back to Bitcoin.
“I had a reading that global central banks were printing a lot of unbacked currency. Bitcoin was basically created to be a store of value and fight rampant money printing. At the time, Bitcoin was quoted at $9,000 or so, when I built up a position in the market again.”
Pedro recalls that he also bought Ethereum when he returned to the market in 2020, and ended up having his thesis proven with the rise of cryptocurrencies.
In addition, he recalls that inflation remains at worrying levels after this money printing, which still maintains strong the thesis of the store of value in decentralized digital currencies.
Studying altcoins, I got to know play-to-earn games
The Brazilian stock exchange and cryptocurrency investor then continued to seek opportunities to trade in the market, when he came across a new reality: play-to-earn games.
When he got to know this market, he came across the NFTs mechanism and Axie Infinity was the one that caught his attention the most, especially in 2021. He invested in Axie schools so that players could participate, but he is not a player himself.
Thus, Pedro began to delve deeper into what the NFTs were, entering this space without understanding how people paid thousands of dollars in a “digital sticker”.
“Attentive to opportunities, as I was already in the area, I began to see an absurd flow of money to the NFTs. I started looking at the CryptoPunks collection and didn’t understand how the guys paid millions on a sticker. I thought it was absurd, I thought that it doesn’t enter my head”.
“Out of curiosity, I studied more, coming to a rationale about the NFTs market”
Pedro Novaes’ first impression is that the NFTs had no fundamentals, a strange market yet. For him, buying a JPG file made no sense, nor the reason to pay an astronomical amount for it, which can be “printed” by anyone.
But as he considers himself very curious, he studied and believes that the logic of this market has matured. In his theory, human beings like to walk in community and this market began to be associated with luxury collectibles.
“So, technically, the human being wants to walk with the same people, who think and act the same. I realized this and made the following analogy: people are buying dearly to become a member of these communities and the benefits they provide, be it contacts, relationships and parties. As NFTs collections are limited to a maximum amount, joining a famous community is in short supply.”
Furthermore, Pedro identified in his analysis that people like to show themselves on social networks, a behavior of social status.
With NFTs, this becomes even more unique and social networks like Twitter are already valuing this, by integrating users’ unique arts into their accounts, so they can use their avatars.
“Where do people like to show their status the most? Social networks. So I thought this: NFT is the status of the social network. That was my rationale about the value of this market, and it’s no use printing the NFT anymore, social networks are already verifying users according to the real owner. So this combination of human behavior analysis that led me to focus on NFTs.”
NFT is a promising technology in various industries
Born in the state of Goiás, he joked that he could buy an NFT to enter the Cabaré show of singers Leonardo and Eduardo Costa in the future. Furthermore, investors can buy fractions of a gig with this token to receive profits.
Pedro then believes that NFTs can also be linked to royalties from music artists, metaverse lands, clothing brands, football players, among others.
So, after a skeptical beginning with this technology, today he has totally changed his view and believes that NFTs are here to stay. Regarding infrastructure, he believes that the Ethereum network is the biggest, even with the arrival of Solana and others in space.
Favorite NFT Collection is Bored Ape
Pedro never really liked the CryptoPunks collection, which seems to be abandoned by the company that created it and its community doesn’t interact much.
So he put his chips on the Bored Ape Yatch Club (BAYC), which he considers his favorite collection. He believes that the company behind it brings exclusive benefits to those in the community, whether in discounts and exclusive products.
One of the points that most caught Novaes’ attention was the launch of the Mutant Ape Yacht Club (MAYC) collection, mutations of the Bored Ape. In this way, the Brazilian is selling his BAYC to buy mutant NFTs, which he believes have the potential to appreciate more soon.
In the first quarter of 2022, investors of mutants will receive APE tokens, and whoever has more MAYC will benefit from this movement, being the justification that Pedro is considering to carry out the exchange.
To the Livecoins, he narrates that he has already had 3 Bored Ape’s in his portfolio and continues to have the collection as his favorite, but he also invests in Doodles. Asked what to look for when buying an NFT, he offered tips for new investors looking to watch this sector.
“NFT has to be more than an image, they have to have a use case. Bored Ape itself could become a clothing brand in the future. Neymar has already bought items from this collection, among other celebrities who want to be part of this community. In addition to being beautiful and the investor has to like it, the NFT has to generate benefits”.
Beware of NFTs
For Pedro, the world is changing very fast and new generations should focus on the virtual sector, so NFTs make sense in this context of social networks and cultural change.
Even so, this market is still very risky and people shouldn’t buy NFTs just because someone referred them. For the Brazilian who has been buying and selling NFTs in recent months, it is important to verify who created the collection, if it is genuine.
Care with communities should also be redoubled, especially on Discord, where private messages are usually scams.