How is My Steemmonster Gold Lightning Dragon Speculative Investment Performing?
I have written 3 in depth articles on my strategy to corner the market in the most rare card in @steemmonsters , a wonderful steem blockchain based collectible card game created by @aggroed and @yabapmatt .
Here is the most recent article: https://steemit.com/mene/@goldmatters/why-i-bought-36-84-of-the-alpha-gold-foil-lightning-dragon-supply
I have been fully transparent in what I am doing. This is a bit of an experiment since this is a pretty unique situation and though I have experience as an investor, I have never really bought into a game like this before .
As part of this experiment I am documenting my rationale for this speculative investment. If you are interested in my reasoning, check out the article I linked above.
How is my investment effecting the market?
For a bit of context, there are currently 19 alpha gold foil lightning dragons in existence.
I now own 7 of them, representing 36.84% of the current supply.
I am highly confident that because of my purchases, this is now the least available and highest priced card in the game:
There are only 2 currently for sale with the lowest priced at $4900. Obviously, that does not represent price discovery because no one is purchasing it at that price.
BUT
That could be said of any of the other cards for sale, and yet the pricing of the Lightning Dragon is 5x the next lowest selling price for the legendary group, being the Selenia Sky at $899.
While I know these prices arent actual because like anything, they are only worth what someone is willing to pay, it is certainly indicative that the strategy is working aligned with my expectations.
What I did not expect was that there might be a knock on effect on the Beta version of the card, but this appears to be the case as well:
Note that the Beta version of the card is also:
Selling for a premium vs. the other cards
Is the most expensive card in its class
So so far so good. Again this is just an update on how effective the strategy has been so far and not a full explanation of what might or might not happen with the speculation, as I have already delved deep into these topics previously.
It will be interesting to see if anyone else decides to try and corner the market on any of the other cards. I know of at least one person @mattclarke that is doing something similar with positive results as well.
I believe the next rarest card after the lightning dragon is the Angel of light.
You can also get this 24 karat gold Angel Wing Charm priced by gram weight x current metal price with a transparent design fee from Mene :)
See ya in the arena!
Earn $5 in Mene credit for signing up for Mene with this invite link:
Investor Presentation: https://mene.com/investors/docs/Investor_Presentation.pdf
Earn $5 in Mene credit for signing up for Mene with this invite link:
To sign up for a Goldmoney Holding start here: https://www.goldmoney.com/w/goldmatters
Sign up for steemmonsters: https://steemmonsters.com/?ref=goldmatters
Jewelry Worth It’s Weight in Gold:
Menē crafts 24 karat gold and platinum investment jewelry™ that is transparently sold by gram weight. By combining innovative technology with timeless design, Menē restores the ancient tradition of jewelry as a store of enduring value.
I am on a personal mission to spread the word about Goldmoney and Menē through any means necessary. Goldmoney\Mene allows individuals to empower themselves by protecting their savings by owning small or large amounts gold previously inaccessible to regular people like you and me.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
See Steemians unbox Mene:
I've got about 3% of the Alpha Angel of Light Supply - but that's regular foil. :)
Hey at least you have got skin in the game!! :)
Thanks for the mention. I'm really happy so far, too. When the price goes up, my collection quickly gets more valuable (at least on paper), when the price stays low I get more opportunity to increase my stake.
Just over 20% of regulars, just under 20% of gold foils.
I've thought about the price relationship between alpha and beta too.
Thinking from the perspective of a player (rather than a speculator), if the price of beta is within 25% of the price of alpha, they're better off buying alpha versions and converting them.
This is one of the reasons I'm concerned at the idea of pushing the price of alpha cards too high.
If there's too great a difference nobody will buy and convert those alphas.
Just looking now, cheapest beta is 12c, cheapest alpha is 16c, exactly reflecting the difference in xp.
If the price of betas gets up to 13-14c, then those alphas will be bought and converted instead, which shrinks the supply further.
In the gold foil, the alpha is more than twice the price of the beta; so nobody's buying and converting those alphas.
This would likely explain the increased price of beta lightning dragons. Those who want a beta don't have the option of buying and converting a cheap alpha like they can with the other cards.
That’s interesting for sure, I hadn’t considered that angle.... Yeah I am not necessarily looking at it from a players perspective because what I am doing is more capital intensive for even a single card and obviously most players aren’t going to spend several hundred dollars for a card. I think people are assuming I am counting on gold foil tournaments to add value to my collection but really in mind my that’s just a added bonus if those happen and a minor part of the thesis. I am thinking in terms of the serious collector and I have a long term time horizon (years) to see if this actually works. I’m well aware that MTG black lotus alpha cards are 25 years out now ( and really a totally different ball of wax). ... It is interesting how we have a simular idea but are playing it in a different way. I think we will both be happy if the game is a huge success :)
There's also a massive marketing component to this. Every time a streamer opens a flesh golem, and mentions my name (they're always casting about for something to talk about), that's more exposure for my personal brand.
Goodness knows I'm not getting any exposure from the top of the leaderboard any time soon :)
I like your style @mattclarke!
Woah! You have 7 of them johns out of 19!?!?! Woah someone must feel amazing inside. That would be like a huge accomplishment I would think. Grats man!
Thank you! Only 12 more to go :)
thats pretty crazy! I think you have a good business mind there
It helps that they are gold ;)
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thanks!