Fading Yuga Labs has been the worst idea of this entire cycle. They have not yet given us a reason to doubt their abilities, and the community/brand recognition are incredibly bullish for the future of the $APE ecosystem. BAYC’s cultural impact and ability to bridge the gap between web2 and web3 opens the door to a massive audience. However, with a $10B FDV and all eyes on the king, we now have very high expectations and execution risk. What happens if Yuga’s game sucks? What happens if the brand makes too many missteps and is canceled or fades into irrelevance? The circulating supply of $APE will approximately double in the next year, meaning well over 100 million coins will be available for sale.
I was excited about the $APE launch and told everyone I’d be buying as much as I could sub $5. It never got that low. My mid-IQ brain is concerned at the high valuation, but the ape in me tells me Yuga Labs might end up actually creating THE metaverse (sorry Meta). So, here’s what I’m doing for now:
- The Depeche Node Airdrop Rule (DNAR™) states that one must sell 50% of airdropped rewards within the first week of launch. I followed this rule and sold half of my allocation.
- I’m HODLing the other 50% of the airdrop and waiting to see what utility looks like for the token.
- Sell if price hits $20
- Buy if price dips below $5
*NFA I’m just a guy writing a newsletter for fun