All the Way Up
Why the prices of our NFTs continually increase
While the Groups are still on their journey, the first four-hundred Runaways can already be adopted for 0.001 ETH. If you want to invest in the squids to make profit (and of course because they‘re just too cute to be left alone), this may be the best time to adopt, for as soon as the first group has made its way, prices will start to rise. The details on our concept regarding prices can be read in the introductory article. In this reading, we want to explain why prices are increasing and how you can profit from this.
There can be found a variety of NFT collections where price is increasing as newer parts of the project get released. Most of these projects use this strategy in order to reward early inverstors. If the project‘s audience grows over time and demand increases, new investors are willing to pay a higher price. So if price increases with demand, early buyers who already own a collectible can sell it for a price higher than at which they have bought it, for if the price stayed the same, why should anyone want to buy a collectible at a higher price when not all of them have sold out yet (meaning same rarity, of course).
Let‘s explain this further in an example: Say you adopted a Runaway squid right now for 0.001 ETH. As soon as the first group of squids arrives on the blockchain, price will increase to 0.005 ETH. That means that anyone who wants to adopt a squid from the newer release must pay at least 0.005 ETH, and therefore you could make an offer for your squid instead, at say 0.003 ETH. Since most of the squids (except the few special ones) are randomized and won’t be released in any special order, the chances of getting a squid with rare attributes always stays the same, no matter if the squid was part of Group 6, Group 1 or the Runaways. This ensures that the squid you have bought at 0.001 ETH doesn’t have less value just because you paid a lower price.
Now does this mean you can only win? As with every kind of investment, the answer is no. There is no guaranteed winning, and this is really important to be aware of. Simply because prices are increasing over time doesn’t mean that people are actually willing to pay them. There are projects with very agressive price scaling, where price level increases by a factor of ten each time a new batch gets released, and the latest items are priced about 1000 times higher than inital ones. However, most of these collections can be seen to have only sold their cheapest items and as a result their activity level decreases and people start to lose interest in the project. We therefore decided to have a rather restrained scaling, where the highest price (0.04 ETH, Group 6) will be 40 times the initial price (0.001 ETH), with price increasing linearly rather than exponentially. This will keep people interested in the project while still rewarding the ones who support us from early on.
So as you can see, adopting a squid in the early stages of the project might be very profitable and has a lot of potential, although it’s no bullet-proof ticket to the moon (as with every investment). If you have a look at our roadmap, you can see that we will additionally reward those who believe in and support our project from early on by giving them exclusive access to contests, airdrops and new releases. So if you want to join the Squid community and you’re lucky to read this article before newer parts of the collection get released, don’t miss out this high potential chance! Our squids will be grateful too!
Disclaimer: Please note that this article was written only to explain the concept of increasing prices to our community and is no financial advice. NFTs and cryptocurrency markets are very volatile. Always only invest what you can afford to lose!
