The world of decentralized social media is indeed humming right now, and Farcaster is definitely part of the cutting edge. Rohan Prasad has been closely following the Farcaster ecosystem, and the recent launch of the Farcaster OG NFT has sparked considerable debate: Is it worth holding, selling, or even buying? Let's break down the potential ROI and help you decide what's best for you.

Understanding the Farcaster OG NFT

The Farcaster OG NFT is a truly scarce, prestigious digital badge of honor. It’s only awarded to the first 10,000 users that register for Farcaster Pro. Treat it as a modest “thank you” for all of you who were early adopters. This exclusivity instantaneously generates scarcity, which is one of the most important drivers of value in the NFT space.

Rarity and Exclusivity

  • Limited Supply: Only 10,000 exist, making it a rare digital asset.
  • Early Adopter Status: It signifies early belief in the Farcaster vision.
  • Community Recognition: It's a visual marker of being a pioneer in the Farcaster ecosystem.

The $PRO Airdrop Effect

Since the launch of Procoin ($PRO) an airdrop for Farcaster Pro subscribers has been distributed among some holders. That airdrop did a ton to inflate the perceived value of the OG NFT. Rohan’s big picture The airdrop itself was massively overvalued, at an average of $120 per user. This value more than pays the annual $120 subscription cost for Farcaster Pro. This short-term gain helped the OG NFT become one of the most sought-after NFTs.

Analyzing the ROI: Is it Worth It?

To determine the true ROI, Rohan suggests looking at several factors:

  • Current Floor Price: The floor price (the lowest price someone is willing to sell it for) of the OG NFT hovers around 0.09 ETH, which is approximately $250.
  • Total Benefits: Early subscribers have gained approximately $370 in total benefits (~3x their initial subscription investment), including the $120 Procoin airdrop and the current value of the OG NFT.
  • Speculative Value: Interest in low FIDs and speculation about future airdrops and rewards have driven up the value of the OG NFT, with some users offering up to $34,000 for account NFTs on FarMarket.
  • Opportunity Cost: Rohan emphasizes that holding the NFT also comes with an opportunity cost. Could the ETH used to purchase the NFT be better utilized elsewhere?
  • Governance Benefits: Although specific governance benefits are not detailed, holding the OG NFT makes users eligible for future airdrops and potentially more rewards, as the team has a track record of rewarding early adopters.

Should You Hold, Buy, or Sell?

The decision depends on your individual risk tolerance and belief in Farcaster's future:

  • Hold: If you believe in Farcaster's long-term potential and anticipate future airdrops or governance benefits, holding might be the best strategy. The NFT could appreciate further in value.
  • Buy: If you missed out on the initial claim and want to become part of the exclusive OG group, buying is an option. However, Rohan advises carefully considering the current floor price and potential downside risk.
  • Sell: If you're looking to realize immediate profits and are less bullish on Farcaster's future, selling at the current floor price could be a reasonable move.

Risks to Consider

Rohan wants to make sure everyone is aware of the risks associated with NFTs:

  • Lack of market regulation: NFTs are an unregulated asset class with little to no investment laws and consumer protections in most jurisdictions.
  • Ownership disputes: Third parties can choose to litigate ownership, duplicate the asset, and sell the replica.
  • Authenticity and provenance: Some goods, like fine art and luxury goods, are already difficult to determine if they're genuine and originated from a compliant source with professional expertise.

Potential Benefits

  • Airdrops and Exclusive Access: As a holder of the Farcaster Pro OG NFT, you may be eligible for airdrops or exclusive access to certain features or events.
  • Early Adopter Benefits: As an early adopter of Farcaster, holding the NFT may provide benefits such as increased influence or reputation within the community.
  • Potential for Future Appreciation: The value of the NFT may appreciate in the future, making it more valuable.

Claiming and Transferring Your OG NFT

If you're among the first 10,000 Pro users, here's how to claim your NFT:

  1. Check Eligibility: Ensure you subscribed to Farcaster Pro during its initial launch phase.
  2. Follow Official Instructions: Keep an eye on Farcaster's official channels (Twitter, Warpcast) for the claiming process.
  3. Claim Your NFT: Follow the provided steps to claim your NFT.

Transferability

  • Initial Restriction: The NFT was initially untransferable until 500 Pro users claimed it. This was designed to encourage active participation.
  • Check Current Status: Verify the current transferability status on Farcaster's official channels.

Rohan is quick to suggest that the Farcaster OG NFT is not merely a digital collectible. It represents the kind of early support we’d expect for a successful new decentralized social network. Deciding whether to hold, buy or sell should be based on your specific situation and market predictions. Conduct your own due diligence, consider your personal risk aversion level, and decide appropriately.