Transaction data from the OpenSea marketplace shows that just 28.5% of NFTs purchased during minting and then sold on the platform result in a profit.
Buying NFTs on the secondary market from other users and flipping them, however, leads to profit 65.1% of the time.
A report that will be released by Chainalysis shows that the key driver behind NFT success is community.
NFT creators typically begin promoting new projects long before the first assets are released, gathering a core of dedicated followers who help promote the project from the outset.
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In addition, through ‘whitelisting,’ this original group of dedicated fans are given the opportunity to purchase new NFTs at a much lower price than other users during minting events.
Whitelisting is an important measure of success.
OpenSea data shows that:
- Users who make the whitelist and later sell their newly-minted NFT gain a profit 75.7% of the time, versus
- Just 20.8% for users who do so without being whitelisted
The report has further established that it’s nearly impossible to achieve outsized returns on minting purchases without being whitelisted.
Overall:
- 78% of sales by unwhitelisted buyers later result in a loss on resale
- 59% resulting in a loss equal to or below 0.5x their initial investment
- 78% of sales by whitelisted buyers, on the other hand, result in a profit, with 51% resulting in a profit of 2x or more the initial investment
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