In this post, I will argue that holding VIP status is the single most important asset you can own on ThetaDrop — how VIP Bronze+ will soon become necessary to trade effectively on the platform — and what this means for the bottom-up growth of the Theta Ecosystem.
Until recently, Bronze VIP status offered little upside for ThetaDrop users.
While Gold and Silver tiers allowed users to jump the queue on waitlists — Bronze status was lacking the juice to inspire traders to stack TDROP token.
This all changed on April 19th, when ThetaDrop announced that VIP members would be allowed to price their NFT’s in TFUEL only.
A very powerful weapon, let’s talk about why.
Crypto markets are volatile (obviously). As such, there are specific times in which selling your NFT’s in TFUEL is a distinct advantage.
If TFUEL is priced low, a trader might want to sell in TFUEL to stack and wait for the token to appreciate — increasing buying power.
Alternatively, if TFUEL is rising — a trader doesn’t want to receive payment in USD, because it offers no yield. A trader’s buying power would then be diminishing in comparison to holding TFUEL.
More specifically, ‘TFUEL only’ gives VIP traders the ability to have more control on their ROI.
For example, the purchase price for the Pineapple below was 4,016 TFUEL.
With today’s Pineapple floor price at 5650 TFUEL, the trader has the ability to undercut the market, selling at a more attractive price while making a solid gain.
On the other hand, in a crypto bull market — where TFUEL is rising — if your NFT sells for USD; you are now in a zero yield asset.
A trader then has to quickly decide how to put that money to work — finding a different NFT to purchase or worst-case scenario begin the process of withdrawing the USD.
Given these distinct advantages for VIP’s during times of market volatility, it isn’t difficult to foresee a pattern inevitably emerge…
Because VIP’s can undercut the market in pursuit of TFUEL — floor prices will increasingly be in TFUEL only.
As the number of VIP members rises, this will become even more common — until it becomes the rule.
This will invariably force the hand of regular traders to either a) take losses by pricing their NFT’s lower than VIP’s or b) become VIP members themselves so that they can play in TFUEL only land.
We think it’s the latter option.
If you can’t beat ’em, join ’em.
At a current market price of ~2ยข — 50,000 TDROP for Bronze will run you about $1,000. Depending on how much you trade, that could be a very good deal.
Given the advantages laid out, our speculation is that VIP memberships will rise significantly — increasing demand for TDROP tokens.
Moreover, all of this is decisively bullish for TFUEL as well.
As more NFT’s are priced in TFUEL only, traders will be foolish not to purchase TFUEL to have access to more inventory and take advantage of the potentially lower prices.
This will begin a feedback loop with more and more transactions occurring in TFUEL, increasing demand and increasing TFUEL’s market price.
Long-term this is exceptionally good for the Theta ecosystem.
Bullish VIP’s = Bullish TDROP = Bullish TFUEL
Ultimately, the price gains in these gateway tokens will be bullish THETA token — which by the way — got it’s own new utility recently…
Trade well, everyone.