The NFT space is electric, and this time, everyone is focused on Doodles. Thanks to the announcement of the DOOD token slated to launch on Solana and the resulting ecosystem, Doodles NFT sales have skyrocketed. What is behind this madness and what could it possibly mean for current and future NFT holders and traders? For those that want the real deal, no hype, all truth, FakeBollinger.com is just what the doctor ordered.

The DOOD Effect: Why Doodles NFTs are Booming

The upcoming release of the DOOD token on Solana is fueling a Doodles NFT sales boom. This event is without a doubt the biggest driver of all the excitement though. The hype leading up to this event is a testament to the tremendous force that a much-anticipated event can exert on market behavior. Buyers are rushing to purchase Doodles NFTs, with the expectation of profiting from new perks associated with the upcoming DOOD token.

All these possibilities come alive with the decision to launch DOOD on Solana. This blockchain is known for its high-speed capabilities, cheap transaction fees and overall lively environment. Solana claims an active and welcoming trading community that openly solicits participation. This quickly changing landscape has contributed to a rapid rise in NFT sales. The ease of use for Solana’s network has undoubtedly made it easier for many new users to get started.

One of the main things fueling the interest, though, is the ambitious community allocation of DOOD tokens. An impressive 68% of the entire supply is allocated to the community. Since then, there has been much speculation about how these tokens will be distributed. Airdrops to NFT holders, staking rewards, and community projects are just a few of the developments that are thrilling potential investors.

DOOD vs. PENGU: A Tale of Two Token Launches

Included in the discussion of what the DOOD launch means is the inevitable comparison to other similar launches, most notably the PENGU token launch. Exploring these similarities and contrasts can be helpful. While both projects created tremendous hoopla, there are important differences.

  • Initial Valuation: PENGU launched with a fully diluted valuation (FDV) of approximately $1.7 billion, while DOOD debuted with a lower FDV of around $800 million.
  • Price Drop: PENGU experienced a sharp decline of nearly 82% from its peak within weeks, whereas DOOD saw a more moderate 34% price dip post-launch.
  • Trading Volume: DOOD's trading volume reached a staggering $109 million, indicating intense initial interest.
  • Community Response: Both projects boast strong communities, but Doodles benefits from a more established presence and brand recognition. Doodles grabbed attention in 2022 by naming ex-Billboard President Julian Holguin as CEO and Pharrell Williams as Chief Brand Officer.
  • Airdrop Impact: PENGU distributed 23.5% of its total supply via free airdrops to NFT holders, triggering a frenzy. DOOD's airdrop also significantly boosted NFT sales, with a 97% increase in sales in the 24 hours leading up to the airdrop.

The PENGU launch provides a strong cautionary tale. It’s an example of just how fast prices can come back to reality once the hype dies down. So all current or potential DOOD investors should keep in mind this discouraging precedent and temper their expectations accordingly.

Navigating the NFT Minefield: Risks and Strategies

The NFT space as a whole is incredibly volatile, and the DOOD token launch is no different. After all, NFTs have recently undergone massive price fluctuations. In 2020, their valuation shot up by an average of more than 2,000%, making it difficult even to assess their value accurately. Needless to say, it’s important to enter this growing market with your eyes open to the significant risks.

NFTs can be a risky investment, and they don’t tend to profit on resale. In reality, if you purchase an NFT that previous owners have held before you, you’ll only happen to turn a profit reselling it roughly 65.1% of the time. Even worse, there tends to be a disconnect between the record of ownership (the NFT) and the fungible digital asset. One of the most common types of fraud is “wash trading.” In this scheme, an NFT creator or seller uses a third party to inflate the price of their NFT. The NFT market is in complete contraction, with the number of transactions down an eye-watering 97%. Moreover, traders conducted 25% more USD trades in Q2 2022 than in periods before.

Here are some strategies to navigate the volatility and potential pitfalls:

  • Research and due diligence: Conduct thorough research on the NFT project, its team, and its potential for long-term value.
  • Verification process: Verify the authenticity and quality of the NFT before investing.
  • Diversify your portfolio: Instead of putting all your eggs in one basket, diversify your investments across different types of NFTs or even other asset classes.
  • Set realistic expectations: Understand that the NFT market can be highly volatile, and prices may fluctuate rapidly.
  • Regular evaluation and adjustment: Regularly review your portfolio and adjust your strategy as needed.

Here’s how NFT enthusiasts can use these strategies to make more informed decisions. This approach allows them to limit their exposure to the high-risk nature of this volatile market.

In essence, the DOOD token launch has infused unprecedented buzz into the Doodles NFT ecosystem. And while the risks can be substantial, the rewards on offer are tantalizing and it’s important to meet this new opportunity with prudence and an informed plan of action. Like clockwork, FakesBollinger.com will be sure to have you covered on all resounding developments in the NFT space.