Visa (V) jumps into the NFT (non-fungible token) deep end with a purchase of a CryptoPunk. CryptoPunk is considered the O.G. of the NFT space, especially in the avatar/profile picture category. It has a floor price (minimum entry) that exceeds every other avatar project by a long shot, although Bored Ape Yacht Club is trying to gain ground.
Does this mean NFTs will be a moonshot? No.
Does it make Visa an NFT play now? Also, no.
For Visa, spending less than $175,000 on a marketing campaign, which is what this is, amounts to a Monday morning coffee break. It's the equivalent of you or I leaving a penny at the cash register when we check out.
That being said, there is a takeaway from this. Corporations are getting involved in the NFT market. Arizona Iced Tea teamed up with the aforementioned Bored Ape Yacht Club recently. We could see more corporations turn to NFT for marketing and brand awareness. Essentially, trying to fit in with the "cool" kids.
The bigger question is where does the money go when corporations start buying? I'm not talking about the corporate money. That's all going to go to the "blue chip" NFTs. I'm talking about the sellers. The folks bringing in $10K, $25K, or maybe even $150K.
We may see some of it move into the traditional economy, but we're more likely to see it flow back into the NFT market. Why? Because that's where the big gains started. I base that on past experience. When I meet someone who made their money developing properties, the first thing they talk about after selling a development is what are they going to develop next. A house flipper looks for more houses to flip. A landlord looks for more properties they can rent out.
If you made your first big killing trading stocks, you're probably going to stay with trading stocks. We know how hard it is to drag the early winner of crypto away from crypto. Why would NFTs be any different? If you make your first million trading NFTs, you're probably going to stay with that same model as long as possible.
In the end, the Visa news really doesn't change all that much because it won't move the needle for Visa. Stock traders trying to capture exposure to NFTs without really buying NFTs, won't look at Visa. It won't move stock traditionalists into NFTs because they identify this is a small dollar marketing move for a company of Visa's size. And it won't deter existing NFT buyers and traders from staying in the sector.
In short, the biggest takeaway the Visa news offers is we should expect to see some big corporations attempt to make headline splashes by using big NFT projects as a marketing avenue. That's it.
Doesn't make me any more or less bullish on the NFT space or Visa than I currently sit.
