NOTE: This story first appeared in my Ministry of Alpha NFT newsletter on Substack. I have reprinted it here with minor modifications.
This is the second in an occasional series of dispatches on what I see as undervalued NFT projects that exist here at what I would argue is the bottom of the bear cycle.
These are projects that have survived Solana winter, that have continued to build and grow both their business and their user base, and which are putting in place expansion plans as 2023 begins to unfold.
And most important: They are cheap relative to their own history, relative to their prospects, and, in this case, relative to the income the project generates.
Today’s value NFT…
Oak Paradise — a collection of 5,555 NFTs tied to a successful, online gambling site offering a sports book, a poker room, and a vast assortment of casino games.
Oak’s history began inauspiciously as a pre-mint rug back in the spring of 2022. Ultimately, the current team leader, a former investment bank known on Discord as Polyphemus, took control of the project last August and turned it into the successful, Switzerland-based gaming project that it is today — a project with more than 30,000 registered players who have wagered more than $11.2 million cumulatively on the various games of chance.
From a mint price of 0.66 SOL in August, the Oak Paradise floor price today is north of 8.4 SOL. Moreover, profits that amounted to 409 SOL in Week 1 are regularly 2,000 SOL or more here in Week 21.
From those profits, Oak Paradise has distributed to NFT holders more than 12,000 SOL combined, which amounts to about 2.66 SOL per NFT, meaning those who minted have recouped in distributions alone nearly 4x their original cost … while the floor price is up nearly 13x.
Not a bad showing at all, especially in the market Solana has suffered through since the Oak Paradise mint back in August. (Note: To qualify for rev-share, you must own at least three Oak Paradise NFTs, or if you hold less, then you need to sport an Oak Paradise NFT as your pfp on blue-verified Twitter.)
It’s Oak’s consistent income stream that has attracted me to this project, and which…