As I mentioned in my last read that there are going to be opportunities to cook some great gains this week, well the day has come.
Space Robots the second collection under the project name Generous Robots are going for mint today but this is not going to be your usual paste the CMID in your bots mint rather this will be a mixture of a traditional mint method and a dutch auction.
Now if you don't know how a dutch auction works, don’t worry GhosT got you covered!
Under the traditional minting method, there is a fixed price set by the team which you have to pay in order to get your NFT. However, in a dutch auction, there is a ceiling price, a floor price, and a pre-decided price which will get deducted from the mint cost at regular intervals. The team sets a ceiling price above which the mint price won’t go and there is a time interval after which the price of the mint goes down by a certain predecided amount. This process continues till the mint goes to the minimum price the mint can go for decided by the team i.e. the floor price.
For instance, in the case of Space Robots, the ceiling price of the public dutch auction is being set at 12 sol and there is a time interval of 10 mins after the passing of which the price of the mint will come down by 0.5 sol. The floor price in this case is 9 sols. So, the public mint will start at 12 sols and it will come down 0.5 sol every 30 mins until the floor reaches 9 or the project gets sold out whichever comes first.
Now, before we move further let me provide you with the mint details:
Time: will start from 4 pm UTC
Cost: WL1 (9 Sol Traditional Minting Method)/ WL2 (10 Sol Traditional Minting Method)/ Public (12 Sol Dutch Auction Method)
Let’s jump on why you would pay that much money for a stupid robot jpeg:
- Concept: Passive income is one of the best catalysts that a project can have to actually make the floor of their nft strong in the secondary marketplace. The team of Generous Robots actually came up with a sound method of providing that passive income to their holders. The main idea behind the project is that they will invest the money from the mint fund to get guaranteed allocations in several IDOs (decided by the community on the basis of voting), from the profits of those IDOs allocations they will then provide liquidity in the pool of their token $GEAR and also will buyback $GEAR and burn it to make its value stable in the market. Now we, as a retailer know how difficult it can be to get an allocation in an IDO that we know, is going to perform well, but when a project with that much capital acts like a whale things get much easier.
- Staking: Yeah the most common word in the space right now. But, trust me this is something you would love to hear about. The first collection of the project is sitting at a floor price of 12 sols right now as I am writing this piece, what made them so strong? their “STAKING”. Staking the generous robots will yield you $GEAR which is their token. Now there are different categories of rewards for different time intervals for which you are ready to stake your NFT. These are 12 days — 4 $GEAR per day 20 days — 5 $GEAR per day 30 days — 6 $GEAR per day 60 days — 7 $GEAR per day. So basically at the current prices if you stake your NFT for a period of 30 days you will make $360. In the second collection, they are coming with a 50% less supply which technically means more rewards at the end.
- Tokenomics: They have managed to create a sustainable framework to make the value of their token $GEAR stable on the secondary marketplace. The supply of the token is deflationary in nature and there are several methods with the help of which this burning process will take place. First comes the buyback from their IDO profits. Apart from that, they have a breeding mechanism in place as well which requires 500 $GEAR and 2 NFTs to start the process and each reuse will increase the price by 33%.
- Engagement: With the success of their first project they have managed to build one of the strongest communities in the space. These are not just words but facts- as of now only 0.1% of the supply of the first collection is listed on the secondary marketplace. They are also getting on average 500 reactions per post in their discord announcements. Not gonna lie I would be surprised if this comes for public sale. Also right now they are sitting on top of the list of the Solana NFT Passive Income Rankings
So, those were things I am bullish on but there is always a second side to the coin.
Yesterday, the discord of the project got hacked and some members got scammed by the fake links posted on the server. The total amount that was lost was around 300 SOLS. The team, however, took the accountability and provided every detail there was regarding the scam and accepted their mistake. The details of refund to those who got scammed were also posted within 2 hours of the scam.
Apart from this one of the reasons why the no. of listed is so low is because the holders of the first collection are provided with guaranteed whitelist spots for the second collection and we may see some profit-taking after the mint.
To conclude I see their first collection as undervalued based on the concept by which they are providing passive income to the holders. I do like the fact that only 2750 NFTs are going for mint today with that great of an engagement which will possibly create a supply shock in the secondary market.
If you got enough liquidity to go for this mint, I would recommend going through their tokenomics first and understanding the concept behind the project because that will help you make a better decision instead of just chasing the hype. I would never recommend going all-in with all your liquidity in search of that moon shot because I believe risk management always comes first.
As always DYOR.