Selecting an NFT using OnChained — a practical example

This article gives a concrete example explaining why we bought a Cyberkongz VX that showed up in our screener.

Checklist Overview

Is mispriced

According to our machine learning model the item was mispriced by 49% which is significant.

Floor Curve

The floor curve of the rarest trait (Apprentice Hardhat) of the item is quite steep.

Uptrend

The price is in an uptrend if considering the weekly trend but in a downtrend on the daily timescale. However the resistance / support flip at 2 ETH is encouraging.

Collection metrics

The metrics for the collection as a whole are all green except for Fear and greed which is neutral.

Risk management

We deployed 50% of our liquid assets for this trade. This is quite a lot and should be the upper bound.

Liquidity

Liquidity meets our criteria of at least 10 sales per day over the last 2 weeks.

Sale Price

We chose a price of 3ETH and will gradually reduce it in small steps. This has the benefit that the item will show in the “Recently listed” view on OpenSea.

Rarity

The rarity rank is 3142 / 14793. This means the item is in the top 25% in terms of rarity. In general: The rarer an item the less liquid it is or the longer it takes to sell.

Fundamentals

The team of Cyberkongz is famous for being very innovative. They will be launching their new gamified minting program called Play & Kollect in the coming days which might spark additional interest.

Fees

From the actual sale price 5% in fees will be deducted (2.5% creator fee and 2.5% OpenSea fee). This is very low compared to other collections which can have up to 10% in creator fee.

Conclusion

This article gave a concrete example of how an NFT can be selected in a systematic way that will increase the probability for a successful trade.