Another week, and another view of the latest regarding NBA Top Shot. As we talked about in the previous two articles, Top Shot is booming, and booming big time. However, the last couple of weeks have turned the market nearly upside down rather quickly.
NBA Top Shot Part 3: More Issues
As discussed previously, NBA Top Shot has sold and grossed millions and millions of dollars in a short amount of time. Also, the latest drop was designed as a pre-order to ensure more packs for more users.
So far, the new drop worked with a smashing success. Top Shot announced that they sold over 325,000 packs via pre-order, with packs rolling out starting on April 14. Yeah, that’s a lot of packs.
At $9 a pack, and over 325,000 orders, that makes the total at approximately $3 million from one, single drop. That’s a ridiculous amount, and Top Shot has revolutionized the world of collectibles in a short period of time.
In fact, the latest fad is ‘blossoming’.
“This space is blossoming. It combines an NBA fanbase that is worldwide. It combines an already established community of collectors. All of these different things combined together met the moment for NBA Top Shot.” (via @SportTechie's State of the Industry) pic.twitter.com/kIozrqvfc8
— NBA Top Shot (@nbatopshot) April 8, 2021
While they have received some heat as of late- we’ll get into that next- collectors are still swarming and buzzing with excitement.
NBA Top Shot has hit some snags
With something of this magnitude, there are always going to be hiccups. For Top Shot, the turn of the calendar year has been full of such hiccups. From the queue issues to the marketplace crashing right before drops, many issues have been frustrating for many collectors.
However, this latest issue was a bit interesting. As Top Shot mentioned before, they wanted to eliminate bots and multiple accounts from the same user. In doing so, they spent a lot of time figuring out how to reduce such activity.
Previously, the issue of withdrawals was a huge concern, and frankly, it still is. They have ensured that the work is being done behind the scenes so collectors can withdraw Dapper funds into their account soon, although there’s no concrete timetable.
The latest issue was gifting. Why gift a moment, you ask? It’s quite simple. Instead of placing a moment on the marketplace and paying a fee, you can negotiate with friends or fellow users on social media and gift a moment. They pay you cash or transfer, and you save money that Dapper would normally take out.
As it turns out, Top Shot shut down gifting for quite some time and suddenly brought it back on April 8. With these updates come more strict policies to gift. These policies include owning 20 or more moments and having a moment for at least seven days. Another qualification to gift is to have an account and make your first purchase at least 30 days prior.
While this may seem confusing to some Top Shot is simply trying to prevent multiple accounts from being run by the same user. Doing so would create that user to monopolize the market if they worked it the right way.
It seems like more of a headache, but they are doing this to eliminate bots and users controlling much of the market.
Market is Crashing
This was one of the fears everybody had: market crashing. Much like stocks, the market is rather unpredictable. Everything could be going right, then suddenly the market drops nearly overnight.
As for Top Shot, this has been the case in recent weeks. For example, Top Shot eliminated new users from making accounts, which was always a bit strange. Max Minsker dove in and did a terrific thread on reasons why the market has gone down, and why not to worry in the end.
It’s not going to last, but if you’re smart, buy some moments while they are cheap and hope they turn around. One example is a LeBron James assist. That specific moment started just a couple of weeks ago around $120 and has dipped all the way down to a low price of $88.
While that’s not a significant drop, that’s just one example. All in all, don’t worry, the market should sort itself out, especially with the new packs everybody will get.
It’s not too late to get in. Unfortunately, the pre-order is over. The good news is because the market has dipped so much, you can buy moments for as low as $4. That’s certainly worth an investment, especially with the expectation of the market increasing at some point.
If you buy 10 $4 moments for $40, it’s very possible you could sell those for at least double that when the market booms again. Worst case scenario you lose a little money. That’s half the fun, and similar to stocks, who knows what’s going to happen.
Take a shot, why not? Plus, it’s pretty cool collecting moments of your favorite player or team. Stay tuned for more NBA Top Shot articles, with one coming next week after the massive pre-order release.
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