The Compass: How to Get Insights on NFT Holders' Reactions to Events

The Compass: How to Get Insights on NFT Holders' Reactions to Events

Nansen shares how you can use our dashboards to figure out how NFT holders are reacting to an announcement or event, surfacing potential buy/sell opportunities.

Table of Contents

Text Link

GM Nansen explorers!

During our recent surveys and check-ins with you guys, two things became apparent; you love our product and see value in using Nansen, but are sometimes overwhelmed by the sheer number of dashboards that we offer. We’ve heard your feedback and will be ramping up efforts to help you extract more value from the platform. In this new newsletter series, The Compass, we’ll be doing dashboard deep dives and surfacing great workflows and use cases from you guys. 

We certainly do not have a monopoly over the best ways to use our dashboards and many of you have found your own unique ways to utilize our data to surface the signal. In the spirit of open sourcing ideas, after each issue launches, we’ll be creating posts on Twitter, Discord and Reddit to facilitate discussions from our community on ways to use the dashboard as well as answer any questions that you may have. 

Explorer’s Threads

In this section, we’ll be sharing some of the best tweets and threads from you guys each week. We’ve mostly featured threads from Nansen employees this week but are constantly on the lookout for interesting threads from our community. Be sure to tag us!

  • Is STG a buy or sell by 0xkyle_: Link
  • On-chain look into y00ts holders reaction to art reveal delay by themlpx: Link
  • What Smart Money has been up to by nellimkopi: Link
  • How to Nansen by brainyield_: Link
  • How sonnyf.eth made 1164 ETH from BAYC by crypto_kat_: Link

Dashboard Deep Dive

Overview

This week we’ll be covering the Owners’ Activity tab on NFT God Mode which offers an overview of the activity of wallets that hold an NFT from a specific collection. 

The tab consists of 4 tables:

  • Transactions by Top 10% Collection Owners
  • 24H Latest Buy Activity
  • 24H Latest Mint Activity
  • 24H Latest Sell Activity

We typically target to do at least one of three things with our dashboards - Discovery, Due diligence and Defense. The Owners’ Activity tab can be used in all 3 ways and we’ll be covering how in the segments below.

Dashboard in Action

PROOF, the NFT collective behind Moonbirds, announced a $50M fundraise for their series A. This is a major announcement and checking out the Owners’ Activity tab allows you to track the reaction of owners of Moonbirds. If you’re a holder, this can act as a defense mechanism - allowing you to make an informed decision on how you should react to any announcement. If you’re an outsider, this tab leans more towards a discovery/due diligence.

Source: NFT God Mode as of 31 Aug 2022

In order to get an accurate view of how the holders are reacting, you’ll need to look at both the buying and selling activity. There’s been a net selling of Moonbirds & Moonbirds Oddities following the announcement. On a whole, there’s a net number of wallets selling Moonbirds & Oddities (46 & 27 respectively). 12 diamond hands wallets (wallets that have never sold a single Moonbird), have used the announcement to reduce their holdings. 

An announcement that, on the surface, would appear to be 100% bullish for the connection and a clear ape-ing signal turns out to have triggered the opposite reaction amongst holders of the collection. One thing to note is that this is still just a singular data point and it’ll be wise to check out other dashboards and metrics that Nansen has before making any investment decisions. 

Other Use Cases & Workflows

Other than checking the dashboards after an announcement, checking it periodically allows you to peer into the minds of holders and surface alpha. 

  • Due diligence for newer collections - Is there net dumping or accumulating by the holders?
  • Surface potential collections to do deep dives on by checking established collections- What else are these holders interested in?

That’s it for our first issue! We highly encourage all of you reading to log-in, check out the Owners’ Activity tab for your favorite collections on NFT God Mode and let us know what you find on Twitter/Discord/Reddit. 

If you’re not a Standard tier subscriber but want to check out this particular dashboard, we’re currently offering up to 40% off if you sign up for an annual subscription. What are you waiting for, sign up today

Join 100,000+ Investors Getting Their Trading Edge From Nansen