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📓 Fat Cat Fund Report: March 2021
A look back at the fund's 1st month
March was quite the eventful month! Neither of us expected the market to move as quickly as it did, which made March an interesting time to finally launch our 100 ETH NFT fund.
Let’s get right into the first report.
Our first investments of the fund were two animated pieces from Juan Ma Orozco, an ambitious young digital artist from Costa Rica. While the pieces are not 1 of 1 uniques, we were impressed by the level of detail, which required 60+ hours to create each piece.
Our first acquisition of an entire collection, aptly titled “Star Falls” by Supafray. Style-wise, it was a good match for Kevin’s trip.
Supafray even went through the trouble to print and ship canvas prints of the pieces. We’re big believers in “NFT to Physical,” so we’re looking forward to working with Supafray on future digital-to-physical experiments.
This next investment technically isn’t an NFT, rather, it’s a fractionalized ERC-20 token of an art piece. Fractionalization is one of the frontiers of NFTs, and this piece by Sven Eberwein was created in collaboration with fraction.art by DAOfi (disclaimer: we hold DAOFI).
What’s interesting about the piece is that it dynamically changes as the $REFRACTION token is bought and sold, such that there is no terminal static state of the piece.
What happens when no single individual can “own” a static art piece but rather, a community of people own fractionalized shares of dynamic art?
Saturday Night Live: what the hell’s an NFT
ICYMI, this SNL skit is worth a watch:
Who woulda thot 3 months ago that SNL would do a skit on NFTs!?! 🤯
If any of y’all know SNL’s social media team, please put in a good word 😽
🧮 Portfolio Strategy:
Months ago, our NFT fund convos focused on project tokens (e.g. AXS, RLY, RARI, MANA, etc). While we’ve set aside an allocation for these tokens (which we’ll explore in future newsletter issues), our focus today has shifted to direct investments into up-and-coming artists.
100 ETH (~$200k at time of writing) is nothing to sneeze at. At the same time, current prices on the popular NFT marketplaces would drain our fund in a heartbeat.
Because our goal is to acquire multiple pieces from every artist we invest into, we by necessity need to focus more on the “rising stars” as opposed to the Beeples and Paks of the NFT world.
It works out as we both get huge satisfaction from unearthing hidden gems. Steven loves trolling fantasy sports waiver wires and Kevin is the Sherlock Holmes of Reddit 🕵️♂️
⏭ What’s Next:
We expect to make more purchases from curated marketplaces and dive deeper into niche areas such as “digital to physical” and interest-bearing NFTs.
Please DM us if you’ve got any requests, feedback, questions, or art recommendations.
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