Issue 27 🍵 It's a PartyBid!

The party that bids together, wins together.

Disclaimer: This newsletter is not financial advice. We buy what we like, and you should buy what you like.

If you follow crypto Twitter, you may have seen a bunch of people suddenly presenting themselves as this zombie CryptoPunk with a party hat

Well, that was because a bunch of people successfully won a PartyBid for that same Punk.

PartyBid is a new protocol that allows a group to flashmob an auction. Most scarce and expensive NFTs end up in the hands of wealthy individuals, so PartyBid essentially allows a group of smaller bidders to pool funds to acquire these expensive items.

Get fractional exposure to valuable assets is not new—it exists in Silicon Valley, and for NFTs, there’s Niftex, Unicly, and Fractional.

Personally, I just haven't been super excited about the model, though. Usually, when the owner splits an NFT and issues tradable tokens, they keep most of the supply. It doesn't really feel equitable.

And to be fair, it doesn't have to be equitable. After all, it was from the owner—why shouldn't they keep more of the upside?

But all in all, getting fractional shares of a rare NFT has just never felt right. There’s too many uncertainties. Do I get the right to use this NFT as my picture? Am I part of something when I buy a share?

PartyBid feels right though. The bidders can use the commemorative Punk picture, because it was a group effort to win the item! And honestly, if it starts as a community, it's gonna keep progressing as a community.

And ultimately, this is definitely far more unique, right? The model of someone with more capital allowing people with less funds to buy in is not new. Just look at real estate REITs.

But something rare and coveted, being owned by a global community from day one—this is different, and honestly, just much more powerful. This is exactly the type of power distribution that crypto should enable.

Before you close this newsletter, do take a poke around the PartyBid site. It is very in-your-face that you are a part of a collective—there's cursors just moving around in real-time. Much chaos, much fun.

Other news

🌱 Fortune magazine released an issue about crypto eating into finance, and they tapped crypto artist pplpleasr to create the cover. They ended up selling 256 editions of the cover for 1 ETH, with 3 unique editions sold in an auction. It ended unexpectedly though, with a DDOS attack on Opensea disrupting the bidding process.

🌱 Crypto whales are out in play and snapping up what they can. Even Fortune is reporting on it in: “People are buying $200,000 NFT rocks.” Long live the meme economy.

🌱 Zora recently released two auction houses that uses their open-source protocol, Punk House and Blit House. Anyone can list their Cryptopunk or Blitmap up for a reserve auction.

🌱 If you ever thought of building your own NFT platform or auction house, you should check out Artiva! No code required, and they will take no fees because it uses the Zora protocol. You can make your own platform now, no invite needed.

🌱 Christie’s is set to auction off Bored Apes, Meebits, and even more CryptoPunks later in September at their auction house in Hong Kong. The NFTs came from a single owner.

🌱 The first Marvel NFT was released last Friday through VeVe, and it is based on Spider-Man! This is just the first of many releases planned throughout the whole “Marvel Month”.

Reading list

  • Packy McCormick of Not Boring does a fantastic job of breaking down how NFTs satisfy status-as-a-service. If you can’t wrap your head around on why people are spending so much on a picture on the Internet, it’s definitely worth reading.

  • Would highly recommend reading the replies to the Opensea tweet (below) — if anyone wanted to take down Opensea, those replies are the things to work on!

Creative corner

Blind is an art project by Rich Chapellow, who is both a graphic designer and musician. His works are composed of colorful shapes and patterns that follow a grid, and it feels like a level up from your usual 8-bit avatar collectible NFTs.

Check out more of Rich’s works on Foundation, and follow him on Twitter and Instagram!

Try this: check out NFTX/NFT20

This gets a little more trade-y, but let’s push it, since we’re talking about fractional NFT shares today.

We all know CryptoPunks are expensive. They are currently selling for at least around $150K, which is a lot of money.

If you think that Punks will only get more expensive from here, but you can’t afford a full Punk, check out NFTX and NFT20.

The super simplified explanation is that they have tokens that mimic the floor price of NFT collections, and you can buy as little as you like on a decentralized exchange.

If the NFT get more expensive, the token that you bought also gains value. If the floor price drops, the token that you bought also drops in value.

Take a look if you want price exposure to more expensive NFTs. There is risk, so again, it’s more for trading.

If you got any news or stuff to share, you can find us on Twitter.

🍵 See you again next Wednesday! - Elle and Gian