Having spoken to NFT Llama he has kindly agreed to share his background and some of his sharpened trading practices to help you make a profit when purchasing NFTs. Because NFTs have been more prevalent on the Ethereum Blockchain up until now, he has more real-world experience in trading in them than many of us in the Cardano scene. Therefore I believe we can all learn from his proven track record.

Can we convince NFT Llama to investigate ADA?

If you have been on the NFT scene you will no doubt have seen NFT Llama’s tweets and YouTube videos. These social media platforms are how he has managed to become an important player in the NFT marketplace. Currently, he mainly sticks to the Ethereum and Solano Blockchains, but I am going to see if I can get him to maybe dabble a bit in Cardano as well.

He has a large following on all the social media platforms due to the time and effort he puts into finding great projects to invest in. Of the back of this he has a group of followers who listen to his picks and information he provides. They are part of his crew, and he does analysis for them which he provides under his Llama Pass.

What’s Llama Pass?

It is an exclusive community accessible to the people who pay a subscription for his service.

The subscription entitles the holders of the pass to a large prize pool, and more importantly his analysis on the NFTs. After analysis he then recommends the NFTs that have shown potential to rocket.

How does NFT Llama choose a great NFT?

NFT Llama has a very defined process, which he incorporates to sift through the thousands of potential NFTs and to find that elusive Nugget for both him and his followers. He would consider himself a Momentum trader. He has very kindly allowed us to share and spread these successful practices with you.

NFT Llama’s 8 steps to success!

Step 1

Check the Volume Charts of the projects for a percentage increase.

(He looks for the beginning of volume increases and specific patterns he has identified to look to get on board as it pumps). Using a free tool, you can find at https://cryptoslam.io.

He doesn’t usually buy at mint but waits until the original FOMO from the launch has died down and all the people who pump and dump are out. The value of the NFT takes a hit as these flippers leave and then falls into the consolidation phase. NFT Llama tracks the consolidation phase and attempts to buy in when the long period of consolidation ends. This is an accumulation phase which is usually signposted by a big volume increase. Again, at this point some flippers will remove themselves from the market causing a price drop as profits are taken. However, once a further consolidation period completes there is usually a boom period. He has identified the cyclical nature of the market.

Step 2

Check for social volume and wording.

He looks for the volume and type of chat about the project on social media that aren’t bots.

A good social volume would be between 5 to 10 tweets per hour about the project. Anything in that sort of range would keep him progressing to the next step. If there isn’t that amount of social interaction, he would potentially look for another project.

Step 3

Check the Discord.

He goes to the discord of a potential purchase and looks for buzz, the chat type and, he looks to see if there is a lot of talk about the project floor price.

When trying to determine if it’s a strong project he looks for people talking about the art or the community as a positive. This can be talking about the roadmap, the developers crushing it, the great artwork or hype for further developments that are coming soon. If there is a lot of chat about the floor price, he sees this as a negative and potentially a lot of uncertainty or hesitancy about the project.

He also looks in detail of how the developers have reacted to floor price drops and how available and active they remain to the community. If there is little or no new developer plans or interactions, it’s a negative. If the developers are holding fun and exciting community interactions and are showing how they intend to meet the next parts of their roadmap, these would be positive signs.

Step 4

Are there any other similar projects?

He has identified that many projects that have the same base type of art or idea tend to surge at the same time, so he looks to see if any other like-minded projects are starting to pump.

So, if for instance one project with a similar art style and community pumps, then ones that have the same type of community or artwork will usually also pump. This is because most NFT communities with a similar theme also share the same fan bases and in fact duplicate a lot of their buyers.

Step 5

Is there a rarity aspect?

He looks at the project to see if there is an obvious rarity line for a project. If a project’s most rare NFT’s are very similar to their normal or lower ranked NFT’s then the lack of differentiation means that people can’t really enjoy showing of their amazing purchase as it doesn’t stand out. However, on the flip side, if a project’s rarest NFT’s stand out and are easily identifiable then that’s a positive as they can FLEX.

Step 6

Low or High Supply

He looks for NFT’s that are lower in supply due to the laws of supply and demand. He mainly goes for NFT’s with a supply of between 3000 and 5000 but he has a little leeway where he will go to 8000 supply maximum on certain projects. This means than when a pump comes the fear of missing the pump can drive the market more quickly.

Step 7

Upcoming News

He looks for any news that can potential cause an NFT to pump soon, preferably news that hasn’t become common knowledge yet (it’s too late once its blasted-on twitter). This could include a potential airdrop, new investment by the developers or even the announcements of the game release date (if it’s a gaming NFT).

Step 8

Ownership

As his last step before deciding whether to buy, he investigates the number of owners in a project. For example, if on average all the owners own 7 to 10 NFT’s it is more likely that a price can fall sharply than when most people own 1 or 2. This is because when people have large holdings, there is usually a point at which they sell of their lower rarity items and maintain their higher rarity ones. This allows them to move onto other projects to invest in again. However this is far less likely to happen when the average holding is 1 or 2 items.

Why does he trade Ethereum and Solano only?

Having questioned NFT Llama about this he explained to me that he likes to try to master one section of the blockchain and its patterns before looking to move to another.

Ok so can we tempt him to Cardano?

I have tried to get NFT Llama to pay some attention to the Cardano NFT explosion. I explained the fact that it has cheap gas fee’s and that it’s a lot greener in terms of protecting the environment. I have then gone on to explain about some of the success we have had in this quickly evolving space. I explained that Space Budz cost 50 ADA to mint and have a floor of 5000 ADA and single trades of over $1 million dollars.I have told him that I believe that risk versus reward in the Cardano market seems to have more potential.

I also explained about new developers trying to be transparent with great roadmaps, features and community interaction like Equine, Pixel Links Golf and BitFins. I am not sure if I have given him enough reason to move onto Cardano as his next blockchain, but I think I have at least got him to take more notice of what’s happening here.

It would be amazing to see an NFT influencer of his size come into this marketplace with all his followers. I believe that once a few ETH based bigger guys move over, that there will be an exodus to Cardano.

Please support NFT Llama if you have benefited from the knowledge and experience, that he has kindly shared in this article. You can do this by following him on twitter or by going to his website (details below). He is also one of the first people to say “Please, do not invest with money that you cannot afford to lose”. I completely agree with him.

If the article has helped you in anyway, please follow me on twitter and tell your friends.

By Marty

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