LUNA Burns, Upcoming Mints, & The Aku Story

APR 07, 2022 • 9 Min Read

Joo Kian + 2 others

DISCLOSURE: DELPHI VENTURES HAS INVESTED IN AKU AND LUNA. THESE STATEMENTS ARE INTENDED TO DISCLOSE ANY CONFLICT OF INTEREST AND SHOULD NOT BE MISCONSTRUED AS A RECOMMENDATION TO PURCHASE ANY TOKEN. THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND YOU SHOULD NOT MAKE DECISIONS BASED SOLELY ON IT. THIS IS NOT INVESTMENT ADVICE.

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Chart of The Day: LUNA Burns in 2022

  • For those unfamiliar with the relationship between LUNA and UST, UST is an algorithmic stablecoin. Each UST minted requires an equivalent dollar amount of LUNA to be burned, with the redemption function of each UST being able to mint $1 worth of LUNA.
  • UST’s impressive growth of $6.5B in supply YTD has resulted in a continuous burn of LUNA supply, with only six net positive days of supply change in 2022.
  • With the LFG’s bitcoin reserve now collateralizing UST, it gives higher security to defend UST’s peg to the dollar. It does not only rely on the seigniorage function to arbitrage, likely reducing the risk of it heading into a death spiral. To learn more about how it works, see this thread.
  • For more detail, Delphi Pro members can read our Terra report here.

Seeking The “Next BAYC,” Akutars Airdrop & Upcoming Mints

[Excerpt from our Apr. 6 NFT Insights]

Notable Upcoming Mints

Please note that this is purely for informational purposes only. This is not investment advice and does not represent an endorsement of any particular project. Minting of new projects is high-risk. The projects chosen below are subjective and determined by the author based on the ones they find most interesting and/or have sparked early interest from other NFT participants. We do stress to DYOR given the risk associated with any new NFT drop.

  • Akutars is a collection that we mentioned in last week’s NFT insights, but we are dropping a reminder here because the snapshot for the Akutars airdrop closes on 7 Apr at 10 am ET. If you own an Aku Chapter or certain other Aku NFTs at the snapshot time, you will receive airdrop passes based on the number of Aku related NFTs held in your wallet. At Delphi, we love Aku because it shows what is possible when visionaries and communities unite. The founder, Micah Johnson, is building one of the first web3-native media companies centered around community, inclusion and empowerment. In the future, this can serve as a web3 gateway for many non-crypto natives.

Akutars

  • MOAR by Joan Cornellà is a collection by the popular Spanish cartoonist who is known for using powerful black humor and satire in his artwork and comics. Holders get access to Joan’s exhibitions, exclusive purchasing rights to future digital and physical artworks, and can enter a raffle to win a 3D avatar. The drop is managed by FWENCLUB. 40% of the public distribution will be sold at 0.5E each and locked up until reveal. The remaining will be sold via a Dutch Auction. You need to register your wallet on the website to participate in the sale.
  • froyoverse is a collection of generative chonky froyo cats by Jessie Morii, artist and creative lead for Crabada (a P2E game on Avalanche). This collection of big-eyed kittens in a yogurt bowl will appeal to people who love cuteness. They are doubling down on the cuteness factor by collaborating with other animal PFP projects including Cupcats, Tubby cats and Sappy seals. There will be 10 unique 1/1s for lucky minters.

froyoverse

  • Moonbirds is the official PFP collection by PROOF Collective, a private membership of NFT collectors and artists helmed by prolific investor & collector Kevin Rose. PROOF is one of the most coveted memberships in the NFT space, with the floor price for entry at 60E+ (>$200,000) now. There will be a nesting mechanic where the longer you hold the NFT, the higher the status you accrue which will have future benefits. Holders will also have access to PROOF discord’s Moonbirds channel. The Dutch Auction starts at 2.5E and there is a good chance this will sell out extremely quickly, given the interest we have been seeing. A raffle for 3 free Moonbirds is currently happening on the website.
  • Drift’s First Day Out is the first open edition drop by Drift, an NFT urban photographer famous for his breathtaking photography from very high places in cities. The drop date has special meaning – it was the same day he was released from prison a year ago. His collection “Where My Vans Go” has a floor price of 50E so this drop will provide an opportunity for many more people to own a Drift. The sale will be conducted on his custom contract and 15% of the proceeds will be donated to the bail project in Cincinnati.
  • Everseed is a Farm-to-Tabletop MMO game that is in development by Amihan Entertainment, a game studio formed by a group of former Riot Games developers. The genesis NFT will be reproduced as 3D avatars that holders will be able to use in the game once the open beta is live. Players will be able to customize the personal details of their avatar, like facial features, hair and skin tone. The mint will be happening on Solana (Magic Eden) via an allowlist, which you can apply for on the discord (#apply-to-chat).
  • For more, Delphi members can see our latest NFT Insights here.

Aku, The Moon God & The New Age of Web3 Media

[Excerpt from Delphi Pro Report]

The Aku Story

  • “Mom, can astronauts be black?” Those five fleeting words from his 4-year old nephew sparked a new chapter in Micah Johnson’s life, a former professional baseball player who left the majors four years ago to pursue his passion for art and creative expression.
  • Like many artists, Micah’s work is a reflection of his own experiences and views. He’s an avid advocate for social equality and is well known for depicting historic moments in black history in his work. When the pandemic hit, Micah picked up a brush and started on a new artistic inspiration, painting dozens of portraits featuring young black kids as cosmonauts. In an interview with USA Today, he noted how his nephew was his inspiration to start painting astronauts because “an astronaut is a universal statement and can stand the test of time.”
  • After much anticipation and mystique, Micah brought his latest creation to life last February when he introduced the world to Aku, The Moon God. Who is Aku, you ask? He’s one of the world’s first-ever digital explorers “whose confidence and ingenuity have him on a mission to prove that no dream is too big and no obstacle is too large.”
  • The first Aku chapter drop sold 1,400 editions in a matter of minutes. The success of the sale convinced Micah there was something special about his new NFT-based character, and with ~$2 million in proceeds, he set out on a journey to prove it.
  • Initially, Micah thought he’d spread out the 10 chapter drops over the course of a couple years, slowly building momentum and excitement for Aku. But that plan was short-lived after interest in subsequent chapter drops surged. Fast forward to today and we’ve already witnessed the successful completion of all 10 Aku chapter drops, the last of which – aptly titled, “The Finale” – dropped in late February.

  • Aku is arguably the most powerful NFT-based character today. His likeness and storyline have resonated with thousands of people, many of which had little to no interaction with NFTs previously.
  • Micah Johnson, the creator of Aku, is leading one of the first web3-native media companies centered around community, inclusion, and empowerment. Aku isn’t just another NFT “project”. It’s the foundation of a bigger vision to flip the traditional media playbook on its head. And it’s starting to get some serious attention.
  • Aku was recently named one of Fast Company’s Top 10 Most Innovative Media Companies of 2022. Aku was also the world’s first NFT-based character to be optioned for TV and film by a major production company, stirring quite a buzz among Hollywood studios and influential icons alike.

Chapter II has the second-highest scarcity with 706 total editions, and its floor price is also the second-highest (~4 ETH). Interestingly, the two chapters that were airdropped to existing chapter holders (IV & VIII) have maintained a floor price well above the initial sales price for new paid chapter drops ($999).

  • For context, Bored Ape Yacht Club (BAYC), which boasts one of the strongest NFT brands, has ~8% of its total ape supply listed for sale. Azuki, another extremely popular NFT collection, has ~11% of its total supply available for sale currently. Some of the individual NFTs in these collections are listed at astronomical prices, so it’s not a perfect parallel, but this just goes to show how strong the community of Aku chapter holders really is.
  • The floor prices for nearly every chapter have also risen since their initial mint dates. When measured in USD terms (as opposed to ETH), most chapters are trading at least 2x higher than their original mint price. Prices across all chapter NFTs seem to be trending higher recently, in part driven by the upcoming Akutar launch. Note: Chapters III & IV were minted on the same contract so historical floor prices on the chart below reflect the lowest priced NFT of both collections (i.e. Chapter IV’s historical floor price).
  • For more, you can see our latest Delphi Report on Aku here.
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Joo Kian + 2 others