Most people dream about finding an NFT gem very early (at mint or at 0.2 ETH), which will turn into the next Bored Ape Yacht Club or Cool Cats. This has been difficult in the NFT summer of 2021 and has since become even more difficult since the number of projects launching daily is rising on Ethereum, Solana and more – there is a lot of competiton, and somewhere inthe ocean of cash grabbers and mediocre projects, there are some pearls to be found that have blue chip potential.
Recently, a project took off that had been absolutely mispriced before: Capsule House. It rose from a floor of 0.1 ETH to 2.2 ETH at peak, before it has consolidated now at a 1.3ish ETH floor. The rise can be explained by a general NFT market revival, combined with many great updates for the Capsuleverse in January. I believe this was just an initial sign of strength, but that the actual Capsule House run will take place sometime in the future. This does not mean that you need to fomo in right now (although the healthy retracement to 1.3 ETH floor could actually be a good entry point to average in if you are interested). I just want to share how I managed to find this project early on and to buy into it when the floor was around 0.16 ETH. The goal is that I provide you with my reasoning to find similar gems in the future. So here comes the case study.
The Collectors Behind Capsule House
How did I find out about Capsule House in the first place? The key for me was to follow NFT collectors I had researched for a while – collectors who have a proven track record, who are here for both the art and the money, and who have a taste I can identify with. That does not mean that you have to do everything someone else does (particularly not pump & dump influencers who get their money for pumping NFTs!). But if I know a collector has a good track record with art I probably will like throughout a possible bear market, I pay attention to their choices and dive into their projects to decide if I should join in. It is an amazing shortcut instead of researching everything because with dozens and hundreds of collections launching daily, you can easily get caught up in the ocean.
In September 2021, I was specifically going through the Cryptoadz holders, a collection that I had found through my favorite NFT content creator Giancarlo Chaux. I thought that it might be good to check out and regularly revisit the Twitter and Opensea profiles of Cryptoadz whales who bought large amounts early on. This way, I found TappySF and Anonymoux2311. These two seem to have a very similar taste, since they often buy similar collections and 1:1 artists, and have a proven track record with many great trades. When checking out their profiles on Twitter and Opensea, I saw that they were excited about an NFT artist named Seerlight, who had very high and rising sales on Superrare. When I checked out Seerlight, I immediately understood the excitement – Seerlight has a very destinctive art style, and the artwork is simply mezmerizing! I fell in love, but the artwork was out of my price range.
Here, Capsule House came in. When checking out their Opensea profiles, I noticed that TappySF and Anonymoux2311 were both buying up large quantities of a collection called Capsule House. I also saw TappySF posting about it. At that time, Capsule House was little known, with 2000 followers on Twitter, pre-mint. Yet some of my favorite collectors were investing heavily into this collection and buying it up from presale investors, around 30-60 capsules each, above mint price, apparently to make sure that regardless of how minting goes, they are early before a major hype starts.
Capsule House essentially is the Avatar collection of Seerlight and Kaejunni, who are the artists behind it, together with their top notch developer itsoksami, who is the tech lead.
I looked into the project and it ticked the right boxes, so I dedided to buy several capsules at the price of 0.17-0.27 ETH (and once 0.7 ETH for a rarer one in the top 10% of the 10.000 pieces) in the week before and after the public mint. Of course I tried to mint them for 0.08 ETH, but it was sold out in 8 minutes and my transaction didn’t go through. There was an initial hype up to 0.8 ETH floor, but then for 2-3 months the price dropped to floor lows of 0.1-0.25 ETH. This was due to the market shifting its focus from NFTs to Crypto in expectation of a big end of year rally. Surely it would have been a great time to buy up some more Capsules, but I have to admit that so much was happening everywhere that it is easy to get distracted by all the noise. Actually I even sold 3 of my 6 capsules (floor ones) with a very small profit, because it was by far my largest holding (usually I only buy 1-2 pieces from the same collection, and back then when the NFT market dipped, I wanted to diversify and add one piece from another collection). But I was not selling my three rarest capsules (two Yokais among them), even though many early buyers sold at losses at that time because they were tired of waiting for a pump / losing trust because of the lack of price action. Now that I explained how I found out about Capsule House in the first place, let us focus on what other reasons I had to invest apart from some of my favorite collectors buying large quantities. Also, why I kept holding my three capsules through the tough months that followed.
The Worldclass Team Behind Capsule House
As mentioned above, the team behind Capsule House is not some anonymous developers who decided to go with the trend and put out some low quality NFT for a quick cash grab. They are well known artists in the space, established among important NFT art collectors. When you check out the discord, you realize they have a strong vision for building the Capsuleverse. Thereby, it fit my approach to almost exclusively invest in experienced teams of builders. By the way, don’t get me wrong, of course an anonymous team can succeed big time, like the Bored Ape Yacht Club. But chances are simply better if you invest in someone you have conviction in who is not anon.
A Collection Where Art AND Utility Match
Over the last months, there was a lot of discussion in the NFT space about what is more important for the success of a collection – the art or the utility. The art supporters often asked questions like „Picasso, when roadmap?“ to show that great art is appreciating in value because it is great art and not because of utility or roadmaps, allowing for greater creativity. Yet while some art collections flourished, the current consensus is that you rather buy into NFT collections for the utility (e.g. tokens, gamification, breeding, membership passes, launchpads, etc.), even if the art is not outstanding or even meh.
To me, Capsule House is one of the few collections that unites both worlds perfectly. The art is simply beautiful, incredibly high quality, full of incredible love for detail, complexity and creativity, similar to Seerlights paintings. Just with the amazing extra utility that its holders can not only display their artwork online & in the metaverse, but that we can use unique 1:1 Seerlight & Kaejunni avatars soon. Imagine you could not only display your Monet or Picasso, but actually become an avatar painted by Monet or Picasso – wow.
Other forms of utility are the monthly raffles. If you hold your capsule at least 30 days, you are eligible to win an original Seerlight 1:1 vintage painting. Of course only few holders will be that fortunate, but still, it is a beautiful way to encourage long term holders and to reward a few of them with incredible artwork. There was also a zodiac drop recently, meaning that every holder got to mint a second capsule for free, which will get burned so that capsule holders receive a swappable background for their twitter profiles. Capsule holders also receive whitelist spots for some upcoming collections of other creators. Of course many collections do this nowadays, but overall, there is quite some utility already (and probably more to come in the following months and years) that is strong combined with the super strong artwork.
Final Remarks
I hope this post showed you the beauty of Capsuleverse, but moreover I hope that the approach I illustrated here will help you to discover your own gems in the future.
My personal situation with Capsule House is that I sold one of my three capsules when the floor was flying for around 2 ETH a few days ago. I did not sell because I did not believe in it anymore, right the contrary, I am more passionate than ever. But I learned over the last months that it really is good to sell into the FOMO when your asset makes an 8-15x to just be on the safe side. You should at least get out your initial investment and preferably lock in a bit of profit to either buy back later again, or to buy something else you have been eyeing, or maybe just let your money chill in your pocket to make sure your gains stay with you. My other capsules (both beautiful Yokais) I hold longterm, as I am very much looking forward to the future of the Capsuleverse.
What do you think about Capsule House? And what are your avatar NFT gems and why? Let me know in the comments or on Twitter 🙂 Looking forward to reading your thoughts.
Capsule House Website: https://capsulehouse.io/
Capsule House Twitter: https://twitter.com/capsule_house?lang=de
The Queen of Fomo’s Twitter: https://twitter.com/TheQueenOfFomo