In scene language, a “drop” refers to the first sale of NFTs.
(Photo: Bloomberg)
His story, his success and his knowledge are rousing, as is the relaxed tone of the report he has just published. Radio journalist Mike Hager had already bought bitcoins in 2013. At that time they were available for 30 euros each. After a while he was able to sell them for a decent profit. And later had to re-enter at a much higher rate. Then, in early 2021, the Techi read about Non-Fungible Tokens (NFTs), digital ownership certificates that also secure crypto art and collectibles.
That was before the art market disrupted, when Christie’s raked in $69.4 million on March 11 last year for Beeple’s diary collage, Everydays: the first 5000 days. Singapore-based entrepreneur Vignesh Sudaresan paid for it. A turning point, because all of a sudden, crypto art had opened up art dealers and auctioneers to a young and solvent audience that had previously been unaffected by art.
As a result, Mike Hager invested thousands of hours of teaching time and life. First he bought a “CryptoPunk” for almost 5000 Ether, then two more of these popular characters. “In total, I invested around 300,000 euros in crypto art in six months. I currently own a collection that is worth over four million euros.”
His 190-page book “Rich with NFTs” passes on this wealth of experience. It scores with a good subdivision, step-by-step instructions and lots of tips. Hager explains which settings the investor can use to find out how much or how little a specific work is valued on OpenSea, the largest trading platform to date. Which critical questions the newcomer should ask before buying, who are the important influencers and that the scene does not meet on Twitter but on the Discord platform.
Top jobs of the day
Find the best jobs now and
be notified by email.
The beginner should register on Discord with the exact name and email address that he uses on all NFT-relevant channels. “This is how you make sure that people recognize you,” he writes. “This makes it easier for artists to find you, to air drop you when they’re giving out gifts to loyal followers.”
Mike Hager: Rich with NFTs. Investing in non-fungible tokens.
Financial Book Publisher
Munich 2022
192 pages
15 euro
A list of blunders makes it easier for novices to find their way around, as do several glossaries. A single one would probably have been more practical for the seeker. A “drop”, for example, describes the first sale of NFTs in the scene language. “Rekt” stands for “wrecked”. One is devastated, right, “when one has bought something, the price of which then plummets”.
NFTs are highly speculative. Hager clearly states who this form of investment is not suitable for: for those who would have to borrow money for it or for whom a loss would ruin them. Hager does not skimp on warnings. Using very specific examples, he shows when a young collector has to be careful. For example, when an NFT spills into the wallet for free. The collector should delete this immediately, because it is “Scram”, an attempt at fraud.
The beauty of NFT-based crypto art is that the collector can also purchase parts of an artwork. With this fractionalization, the purchase of shares in unique NFTs through tradable coins, the sale is possible – but only on the condition of the liquidity pool. “Only if there is just enough ether in this pool do you get your money back when you sell it. Otherwise you have to expect waiting times until (hopefully) there is enough liquidity again at some point.”
Unlike Kolja Reichert’s factually distanced explanation of the opportunities and risks of crypto art secured with NFTs, published by Wagenbach Verlag at the end of 2021, Hager aims at the emotions of the reader.
He makes it clear how lucky he is to be in “one of the nicest, friendliest and most helpful online communities”. Where there are crashes, but also rapid increases in the value of certain motifs, such as the bored monkeys or the CryptoPunks mentioned at the beginning. Mike Hager is enthusiastic – and inspires others, after all he made a business model out of it. In addition to his YouTube channel at the end of the book, he offers readers mentoring for a fee.
More: Billion market or billion grave? What the Metaverse is really capable of.