Introduction

Welcome to the ReidarDAO newsletter! ReidarDAO is a curated investment group with 75+ members focused on allocating capital to web3 assets with the goal of achieving attractive returns and developing a brand as a model investment DAO.

Since this is our genesis newsletter, here’s an illustration of how the newsletter will unfold:

To begin, our newsletter will be sent out biweekly and will have four sections of exclusive content, each written by different members of our newsletter team. At the bottom, readers can also find links to other content produced by ReidarDAO.

The first section, Where We’re At, provides a snapshot of the DAO’s current portfolio and the portfolio’s gain or loss since the release of the last newsletter. If there were any notable events or announcements affecting our portfolio, we will also note such.

The second section, What We’ve Been Up To, highlights the key themes, projects, and questions the DAO has discussed over the last two weeks.

The third section, What We’re Looking Forward To, pinpoints upcoming events and announcements that the DAO will be paying close attention to.

The fourth section, Member Spotlight, will highlight a specific DAO member and what they’ve been up to in the previous two weeks.

Thank you for being one of our first readers. We hope you enjoy!

– Abraham

Where We’re At

Our portfolio has grown 5.33% over the past two weeks, a welcome sight after the recent market bloodbath. No particular holding saw a significant increase, but rather a modest gain nearly across the board. Below is a detailed breakdown of the positions we currently hold.

– Vulkan

What We’ve Been Up To

Yuga Labs: OG Assets vs New School Exposure

Would you prefer the “Old School” MAYC or the shiny, new and highly-coveted Koda?

That is the question ReidarDAO has been considering over the last two weeks. In terms of Yuga Labs exposure, currently we hold one BAYC, one MAYC, two parcels of Otherside land, and a sizable amount of $APE. We don’t have a Koda. While we’ve debated extensively, we have yet to settle on whether a Koda will outperform a mutant and is a necessary acquisition.

Questions the DAO has considered in relation to this include: Is staking going to lead to a rebound of mutant prices? Will Kodas react positively when news is finally announced about the Otherside? Yuga has shown us, time and time again, why they are the leaders in the NFT space - consistently driving value back to their holders. It’s easy to see how their lack of communication feeds the speculation; which in turn earns themselves royalties off of secondary sales, but how much longer will this lack of information be acceptable to the community? Only time will tell, and speculation is as rampant as ever with the Otherside looming.

These considerations culminated in a DAO proposal to sell our MAYC and purchase a Koda. While it was a tight vote, we did not come to a majority agreement and the proposal ultimately failed.

–NobelZobel.eth

Getting GRT-ty

The DAO is no stranger to The Graph Protocol, as ReidarDAO took its first position in GRT (the native token of The Graph) in November 2021. However, the DAO has recently decided to take advantage of the current market conditions and purchase an additional 2 ETH worth of GRT to add to our position.

The Graph project is considered one of the DAO’s high conviction plays as members view GRT as the Google of web3. Viewing the project as an indexing protocol that supports web3 applications, our thesis persists that as the web3 ecosystem grows so does the need for indexing (i.e. GRT). The DAO views this as an opportunity to invest in the underlying technology of web3 which we are extremely excited about.

As volatility continues in the cryptomarkets, look for the DAO to continue dollar-cost-averaging into GRT.

– DigitalTom

To Buy or Not To Buy…a CryptoPunk

For the past month, we have stood at an impasse trying to acquire a CryptoPunk with a sound enough strategy to justify the ~50 ETH purchase. The biggest factor, front and center, is the fact that our treasury has pretty much exactly 50 ETH in liquidity. One potential move would be to use our remaining liquidity and settle for a floor Punk to get exposure before we get priced out. Fortunately, the floor hasn’t moved much, otherwise this conversation would’ve ended rather quickly. An alternative play would be to buy a slightly more ‘desirable’ Punk just above floor prices. However, for that to happen, we would require a proposal to free up liquidity by selling other assets in the treasury. Which particular assets would get the boot has been an interesting conversation, but nothing has warranted a proposal quite yet.

Deciding what to liquidate has not been easy, especially given the LUNA/UST implosion, the Azuki fall out, and a bearish market still flush with enticing-enough projects to mint like an Otherdeed, Chimpers, or Okay Bears. Another thing to consider were the prediction that @CozomoMedici blessed the 1/1 and generative art world with, which he is calling the “The Great Divide”. It proposes a divergence of 1/1 and gen art from other NFTs, particularly pfp projects. As a result, Art Blocks’ younger, cooler, and more affordable cousin, FxHash (on the Tezos network), saw 300%+ increase in sales over the last seven days of trading following Cozomo’s tweet.

While FxHash collectors continue to discover, or rediscover, initially overlooked works of generative artists, it feels like yet another wave of NFT archaeological ‘rediscoveries’ is on the horizon. While CryptoPunks have certainly passed that stage of discovery, it does feel like they’re undervalued for reasons that may not matter long-term. We can’t ignore the fact that the IP rights narrative played a role in BAYC flipping CryptoPunks, and subsequently buying out Larva Labs. Impressive to say the least, but it’s hard to see a situation where CryptoPunks indefinitely remain in the shadows of the Yuga ecosystem.

Even though Yuga controls its own ecosystem, it doesn’t control the overall NFT market sentiment. The historical narrative of CryptoPunks in the NFT space makes it a highly distinguishable project, regardless of who owns it. Just as the 1/1 and gen art market is seeing a resurgence, it’s possible the community revisits CryptoPunks in a similar fashion. 10 years out, will the original 10k project be able to reclaim its throne as the elite OG pfp membership club? Reidar DAO speculates that CryptoPunks will age well long term and it’s an asset we’d love to add to our treasury one day.  However, should we miss our chance this time around, we’re sure to investigate the growing buzz around the 1/1 and gen art market.

– BPoster

What We’re Looking Forward To

Over the past few weeks, we have had great discussions and built excitement towards a few upcoming events in the space. Here are some we’re setting our eyes on in the horizon:

Being fully immersed in the Yuga Labs BAYC ecosystem has sparked lots of discussion and excitement leading up to the Otherside July 16th announcement which will hopefully grant a playable demo to holders. This additional utility to the BAYC ecosystem could be the pivotal final piece to truly dominate the space. The news should allow all BAYC ecosystem adopters and Otherdeed holders to get a clearer picture of how fast this project can really grow.

We have also kept a close eye on Osf’s, Rektguy pfp collection. Currently, the mint is active and will end on the 27th of May. We will be watching the projects volume and price action leading up to reveal.

– Cenzse

Member Spotlight

With the leaders of the NFT market congregating in Minneapolis for Gary Vaynerchuk’s inaugural VeeCon last week, ReidarDAO had to be there. We were very pleased to be represented by three of our members: Abraham, Fitz, and Stehl. They learnt a lot, had a great time, and most importantly were able to share the vision of ReidarDAO with many people who weren’t familiar with us before.

You can hear more about VeeCon and our perspective on it from Abraham on this week’s episode of Reidar Radio.

– Mr. Fox

Conclusion

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