The record for the highest price for a top shot dunking was set in February of 2021. It was the most expensive sale in the platform's short history and the average price was $181. To invest and set that record with the $208,000 purchase on King was an awesome moment as a fan but also as an investor.
“The purchase I made about a year ago, that was kind of the peak.”
Top Shot had a real-world version of trading cards. It wasn't necessary for users to know anything about cryptocurrencies. Paying with a credit card is possible. The onboarding materials did not use words like "blockchain" on purpose.
The number of unique buyers on Top Shot fell by more than half as June 2022, when the NFT is still held, approaches. The average price of an NFT on the platform in May was $17. 71. The purchase I made a year ago was the peak. Bored Ape Yacht Club is a NFT project. As of June 6th, the cheapest Bored ape was $163,000.67.
Why did it happen?
Michael Levy, a Top Shot collector, said that the first question is how did prices get so high in the first place. Is that something that Top Shot or the Dapper team did to cause prices to go that high? Is it something that they have to keep up with?
The number of users increased about a hundredfold because of the hype around Top Shot. There was a time when the company didn't release new packs. More media coverage and new users pushed the prices up further. The prices were up 50 to 100 times over the course of a four week period, according to Levy.
The average price for a Moment was $27.11. The average price for a Moment was $80,000 in January. There were more than 80,000 unique buyers and the average Moment price was $181.
According to the host of The First Mint, Top Shot was a huge boom. Hundreds of thousands of people got their first NFT because of it. The platform was often down and overload with users. Top Shot made a lot of new moments to make up for the onrush of new users.
The market just flooded with more and more moments. My moment is not over. They make new ones every month. New people were not being brought in.
There is a speculative side to NFTs. An NFT is a tangible asset. She has less value when a stock goes down, but she still has the NFT. It's the same thing for a physical card. The majority of trading cards are worthless.
Many people in the Top Shot community identified two different camps. One group was devoted to the NBA. Other people were speculators. The speculators left when there was a rush. They were told that more supply was on the way. I'm familiar with the way this works. I'm just going to take off.
Rewards for holding NFTs April 2021 -> April 2022— JESSE ( , ) (@YoDough) April 13, 2022
1 funny looking cartoon ape
$200 -> $598,620
1 officially licensed NBA highlight
$200 -> $9.91
There was an issue with getting their money out. Withdrawal speeds slowed to a crawl as Top Shot saw an explosion of user growth. The withdrawals took six to eight weeks after Schwarz bought the dunk. Top Shot doubled its team for processing withdrawals and juggled a large amount of paperwork. Steve is a Top Shot user. Some people were annoyed because they didn't get their money quickly.
The issue of withdrawals is no longer a problem. She calls the service an industry standard. She compared Top Shot's troubles to the early days of Facebook and Myspace, when those websites were struggling with scale.
Top Shot is seen as a long game. She says that the market is still maturing and that customers don't ask about the price.
The possibility of third-party developers building on top of Top Shot is being explored. There are games and challenges where users have to burn their NFTs to participate. It would theoretically lift prices if supply problems are solved.
The NFT project that wasn't on the radar during the Top Shot craze was worse than Top Shot. People who held Bored Apes were able to use a serum to create Mutant Apes, or they could simply sell their stock in the game. The profile photo was one of the changes. Doucet says that before them, making an NFT your profile picture on social networks wasn't a thing. It became a marker ofFkaFkaFkaFkaFkaFkaFka after it became a marker ofFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFkaFka
The difference in interaction, visibility, and supply hasn't gone unrecognized. NFTs and collecting are about trusting the company to keep scarcity. The appeal of Top Shot is what makes it appealing, according to Schwarz. BayC has a very calculated approach to building a community.
“So right now, the Top Shot market has been going down, while everyone with Bored Apes and other collections are celebrating.”
Levy was a bit more generous. Levy says that they have been trying to find a balance between fantasy sports and collecting. They pulled levers to find the right mix.
Sentiment and something as intangible as user frustration can cause prices to go up or down. Levy says that the Top Shot market has been going down while everyone is celebrating. Further pushing price down leads to people wanting to sell.
Doucet says that some people left Top Shot and bought animals and became millionaires. People who stayed at Top Shot lost money. It's not easy to say that.
These users are involved in Top Shot and have positive things to say about it.
“I don’t see these prices as a negative at all.”
When navigating between its original business plan and its disgruntled community members, Levy sympathizes with Dapper. Some people don't like decisions and others want them to take more responsibility for the prices in the secondary market It takes a little time to respond. He doesn't think that Dapper was obviously wrong at the time, even though he thinks that some of his decisions didn't look good in hindsight.
Levy said that people who were attracted to free money have moved on to other projects. Top Shot will do well when they appeal to core NBA fans.
Top Shot exceeded the NBA's expectations in the last year, according to an NBA leader. She says that it was even more new when Top Shot was launched. We are all learning this together.
I heard people talking about how optimistic they were. Steve doesn't think the prices are a negative. The next wave of users will be interested in basketball and will be able to get in for $5 or $4 per game. He says that it's more accessible than having to pay $200 for a single Moment.
There were plans for a mobile game that was supposed to be released in 2021. That didn't come to pass. Top Shot is a souped-up version of a fan club, which might mean real perks in real games, according to the man. The part has gotten closer to reality.
The NBA is trying to drive fan engagement, give our fans a way to display their ownership, and connect with the league, according to the NBA's O'Keeffe. We want to create a product that engages our fans, keeps them excited, gives them access, and keeps them coming back, regardless of the secondary value.
“These are all strangers who I only know through Top Shot.”
Top Shot gave away tickets to every playoff game and the NBA draft last year. It is based on how active users are on the platform.
One way to create value is through flash challenges, which reward users for interacting with Top Shot during a specific game night or a weekend, with random requirements for unlocking rewards. The goal was to make the platform more rewarding for hardcore fans.
The fan club aspect of Top Shot isn't limited to the internet. A team captain for a group of fans is given a budget of $5,000 to $10,000 to put together local events Steve wanted to be a team captain. He gave away 16 game tickets to other people so they could all go together. pper gave in for food and drinks
Steve only knows these people through Top Shot. Everyone who went had amazing things to say, which made me feel good because I am definitely an insturmented person.
“I bought a LeBron James Moment for $30 and the rest is history.”
Chris Mullin, who played for the Golden State Warriors in the 1980s, was one of the 15 Golden State Warriors fans that Peressini hosted. You can't get these things from an upgrade to a suite. The league has connections with us. You can't get these perks through our products.
If you hold a specific set of moments, you could get all of the team's merchandise, or you could get tickets to certain games. It was one of 49 moments made of that dunk, so maybe all of those 49 people could meet a player.
Doucet told me that game tickets might make the community happy but don't forget that a lot of people lost money. The business model for sports is different from the one for NFTs, according to Doucet. Professional sports have never been about giving something to a consumer and making sure it holds value for them. He says that it will be an interesting few years for Top Shot as they figure out how to do that.
Getting him into full-time NFT trading was one of the more enduring legacies of Top Shot. He is in Indonesia when I speak to him. He had left his job. He wants to move to Portugal. He mostly mints NFTs to flip them. It all began with Top Shot.
He tells me that he bought the moment for $30.
He liked that moments were more portable than his physical card collection and he liked that moments were easier to display. In October 2020, he posted about his enthusiasm in a sports card forum, where someone replied by posting a picture of a child throwing money from a window.
That thread is pulled back up when we talk again. He thinks the person was misguided when they posted it. At a time before NFTs were mainstream, they should have looked into it a bit more. A hundred dollars in Top Shot would have given them a lot of money.
He knows that timing is important. It was one of the reasons that Libruary quit his day job. If the early users are the ones who get the rewards, why bother coming inlate?