In today’s Exponential Investor

  • A peek behind the curtain
  • The most expensive token
  • Smelly business

In today’s Exponential Investor, I’m republishing part of a crypto report (and recommendation) I made to subscribers of my crypto service, Crypto Profits Extreme.

I’m doing this to highlight two things.

First, it’s an insight, a peek behind the curtain (so to speak) about what some of our premium advisories contain.

Second, it’s to highlight that when it comes to big long-term trends, we’re often at the front of them.

With this, we were very early to the idea that non-fungible tokens (NFTs) were going to be something big. When we published this, it was October 2019 – the crypto winter was still in full effect. Not only that, but plenty of people continued to think we were stupid for our long-held position that another mega cycle was coming.

Things would still get worse, in March 2020, before things really kicked up a gear. We stuck fast, adamant this was just a precursor to a bigger cycle.

Keep that in mind when reading and understanding how we approach our analysis of mega investment opportunities for our subscribers…

(October 2019)

We’ve always believed that the biggest commercial opportunity for virtual reality (VR) is gaming. When you can truly immerse yourself in the gameplay it opens up a whole new level of experience to people.

What will make these future VR worlds really catch however is unique one-of-a-kind experiences.

You see a problem with gaming is your experience is closely mirrored by the experience of another. That doesn’t make it particularly special or unique.

In the real world this is also true. Except for the “human element” which I define as the ability to have an experience that no one else on earth can have.

Like walking a beach on the Great Barrier Reef and finding a beautiful, tiny seashell. It’s one of a kind, something no person has ever touched before. You’ll slip into your pocket as a little keepsake. And forever that seashell will remind you of that experience.

Or think about taking a trip to the Masters golf championship. On a long Par 5 a Tiger Woods drive hits you on the arm. He gives you a signed glove as an apology …and a selfie. A one-of-a-kind experience and keepsake for your massive bruise!

Note: that kind of thing really does happen at golf tournaments

This is why when people travel, they keep mementos, they take photos. This grounds our memories and experiences to a tangible item. But those kinds of experiences and items used to be hard to replicate in a virtual world.

Not only that, it was hard to prove that an item was a one-off. There was no way to really know if what you had wasn’t just repeated thousands of times over for other players.

Except now there are one-of-a-kind digital assets. And through blockchain technology we can prove it.

It’s all due to blockchain hosted gaming. Game developers can create one-of-a-kind items that people can keep or buy and sell in a marketplace.

These unique items enhance gameplay and experience.

These “non-fungible” assets might be a special item in a specific game. They might be something valuable in the real world (like a voucher, or money) that you collect in-game. Or even something collectible that might be relatively worthless, but ultimately memorable to the individual.

These kinds of items no one in the world can also hold at the same time. There is and will only ever be one. And it’s because a distributed blockchain ledger can prove it. Also because of the existence on a blockchain, they can’t be replicated or “double spent”.

This helps to make these games and the non-fungible assets a bespoke experience.

The idea of these non-fungible items is something that’s been around a while. But it is only now starting to gather popularity and traction. That’s in part to these digital items now having real-world value thanks to tradable markets.

The most expensive token of all time

A new game, F1 Delta Time, is a Formula 1 based game where users can buy unique items. These might be cars, parts, enhancements, and other game-based items.

The company that’s deve­­­loped this game in conjunction with Formula 1 is Animoca Brands (ASX:AB1). It’s a publicly listed company on the Australian Securities Exchange (ASX).

For the release of Delta Time it created a one-of-a-kind, special launch car, the 1-1-1. The company set it at auction with the funds to be paid in ETH. The 1-1-1 was bought for 415.9 ETH (Ethereum crypto tokens). That’s the equivalent of over US$110,000 at the time.

The 1-1-1 is a non-fungible token. And at US$110,000 might be the single most expensive token in history.

Since then Delta Time has released more one-of-a-kind cars, the Monaco Edition, the France Edition and the Japan Edition. They were sold for 108 ETH (US$19,827), 96.6 ETH (US$17,774) and 91.51 ETH (US$16,837).

The game is currently built on the Ethereum blockchain for now. But these non-fungible tokens will be used, traded, bought and sold. And soon enough they will be tradeable in a marketplace on a blockchain that I think holds potential to rival Ethereum.

I see a huge growth area in the idea of digitally scare assets. For blockchains that can utilise this technology, I think there’s huge appeal to mass market adoption.

Profits and puffits

The vision I had for this space was the culmination of years of research on the very specific area of NFTs.

It also resulted in a recommendation to subscribers of my crypto advisory service, Crypto Profits Extreme.

That recommendation provided to subscribers was the Harmony (ONE) project. At the time, Harmony’s ONE tokens were trading around US$0.005119.

We were pleased with how it was going and thought it was wise to not look the proverbial gift horse in the mouth so last week we issued action to take to grab those profits.

After all, an “artist” from Brooklyn in the US is selling an NFT which is a year of audio recordings of his farts. I’m deadly serious.

So far the top bid for his farts NFT is 0.2ETH, equivalent to around US$361.

$361 for audio farts.

The lesson here… when ripping profits stare you in the face, it may be wise to just take a bit off the table.


Sam Volkering
Editor, Exponential Investor