Pat Doyle explains NFT analytics and spotting trends with Degen Data

0:01i'm ashton addison from block west capital for investmentpitch media in the crypto coin show and today on blockchain interviews with pat doyle the co-founder of d-gen data pat welcome to the show and thank you for taking the time yeah thanks for having me excited to be here yeah i'm excited to dive into the world of nfts and i know you have a lot of information analytics behind nfts i

0:23would love for you to kick it off with a little bit about what you're doing with your firm pink swan trading and dj and data yeah sure so uh me and my business partner run a company called pink swan trading which is kind of like our holding company under which we build crypto analytics products so the two products that we have right now the first is called genesis volatility

0:45which is focused on crypto options uh crypto options analytics and then the second product that we have in market is called dgen data and dgen data is a nft analytics product so basically what we're doing with dgem data is is we saw in early 2021 the nft market kind of growing organically among crypto natives and we started understanding like

1:13this market is different than trading like liquid erc 20 tokens and the difference is that like nfts are really driven by the value the metadata value of like the characteristics of specific collections and that stuff doesn't normally live on a chain so so we basically started thinking like we need to there needs to be tools to support finding you know proper values and trade

1:37analytics around specific metadata features and that was kind of the the the idea that kicked us into gear to start start building products around the nft space specifically focusing on like extracting trades and trends based on metadata characteristics definitely yeah it's very interesting and myself i haven't heard a lot about analytics and nfts at all you know i

1:59hear about bitcoin on chain analytics or looking at blockchains the only analytic i've really heard is like the volume is crazy on nfts on openc you know it's ahead of some of the major e-commerce platforms and that's a good sign but inside nfts you know how do you value them how do you find upcoming trends how do you know when uh if it's a bubble or not uh i'd

2:22love to hear your perspective on why you're so interested in like nft analytics and what kind of information you find valuable yeah i think that's a great question and i i think you're right like identifying the macro trend that like nfts are here to stay open c volume is continuing to grow the number of new users coming into openc every day grows you know month over

2:43month and those are great macro trends to say like nfts aren't going away but if you if you go deep a layer deeper and you're actually trading buying and investing in nfts that's where like the nuances of each project becomes very important to understand and that's kind of we build tools for for ourselves for the most part like we cater to the things that we

3:03like in crypto as we've been you know crypto natives for the past you know five six years and so i think that was our we saw that you know as you're trading these things you really need to understand you know who's doing what how is the project growing what metrics are people finding or what uh you know characteristics are people finding valuable what are some of the major collectors

3:27doing are they selling their entire portfolio are they allocating more heath to you know building their collection and and i think the interesting part on the nft side is that there's like a compo the social component of nfts is a really interesting like value driver so how big is the community of holders or is it isolated to a few single wallets concentrating like

3:50the entire you know collection ultimately would you know can do and influence price more so there's a lot of different ways to look at these projects and i think for us it was really focusing on like the trader community and mindset around people who want to dive deep into like the specifics of each project definitely and i'd love to dive deep into that let's just say that there's

4:13somebody that is been in cryptocurrency maybe they have bitcoin and ethereum they're interested in exploring into nfts buying some maybe flipping them maybe investing for years to come is the platform live right now and is it just available for anybody that wants to buy an nft or just wants to know more information yeah so dgendata.ios is the site and

4:36everything's open and free we support about 15 different nft projects these are are kind of the ones that we see as kind of having the longest lifespan or having you know we see them being a credible project and resource in the nft ecosys system for the foreseeable future so i think for for people getting started you know kind of curating projects that are are worth

5:02investing some time into understanding that we try to kind of take away you having to research which projects do people like what are some of the things that people are interested in so i think from like an investor perspective somebody getting right into nfts there's a lot of good you know if you like it from the collectible standpoint obviously there's

5:22a lot of collectible projects or profile picture projects and then there's also kind of a whole other wave of nfts of art in nft so there's a big generative art movement which is kind of led by art blocks there's new ai art movements happening on chain um so i think it just you know depends on what you're interested in but all that data is there to you know ready to

5:44consume for anybody who's interested in looking at it definitely and with the the name i'm sort of curious about you know dgen data and where how nft started and it's really started as digital art but there's so much functionality that can be put into nfts and we're still so early on you know and i feel like that d gen like the degenerates sort of ape into

6:08things without a lot of information or they're early adopters and innovators because it doesn't mean that it's a bad thing it just means that you know they're ready to jump into something without a lot of information um i'd love to hear your perspective on you know the name behind it and if that relates to where nfts are at yeah so it's funny because

6:28you're right there's like people in cryptos tend to wear like the the degenerate badge of honor like it's a you know i ate into things because that's just what you do in crypto and so there's there's a component to the name of that but we really the reason we named the product degen data is because like when we got into this we saw like this this like overlap between defy and

6:54generative art kind of coming together so we saw the first project that we started researching heavily was hash masks and they had like a yield earning kind of component to it so you're earning tokens for holding the asset over time and so we saw we started to see like nfts and d5 becoming a like a union and so then we were like well if it's kind of defy and there's a big

7:18generative art movement and everybody loves kind of the d gen mindset this is a good name and obviously being a data product we will we want people to ap appropriately that's kind of how we think about it so if we give you the tools and the data at least if you're going to a you know do a little bit of research before but that's that's kind of how we were thinking about it yeah

7:39yeah very cool and i know that uh we are early on and i'd love to sort of hear a glimpse about as you move forward as nfts continue to grow and the functionality continues to grow where do you see deegen data in five years from now or even longer in in the space and how that reflects in where nfts will be at that point yeah i think looking at nft like the nft

8:06macro trend i think what we're seeing now is a lot of big brands getting into the space and i i see that becoming a like a very clear trend for the next i mean for the foreseeable future i think adidas just partnered with board apes and a punk punks comic and a few other projects for influencers in the space so i see that as being kind of the a clear trend that the space is going

8:33directionally from the dj's standpoint actually what what we're kind of gearing up to do is uh we're gonna actually be selling degen data so we can align some of our engineering resources to our other product line genesis volatility so we're gonna be doing some pretty interesting stuff in the crypto options space in the foreseeable future so we're gonna um

8:55kind of realign our engineering team but where we see djing data going actually is the way that we're we're going to be selling it is we're going to be selling our our company's crypto punk with all the ip of our product and assets attached to it and we think that that's like a really um like that's a highlight of what nfts are there they attach like the value of what

9:17you can put behind them it's not necessarily just the value of uh of the asset itself it's like what it represents and what it means and we think that is going to be a a trend that like nfts will embody more than just a profile picture in the future so so as we kind of transition and build that product and get it ready for the sale where we ultimately love to see

9:42djent data going is being acquired by a dao or being a product that that is used to fund dow developments so we think that that's a really interesting kind of web-free native way to to sell an asset do an m a on chain and then you know continue to provide back to to the uh the dow the growing dow ecosystem mm-hmm now that's super interesting pat it's

10:10it sounds like so your uh djinn data has a crypto punk and you're going to be selling that but also you have all of this analytics information in the platform um and not just about the space as a whole but about the analytics of the platform itself and if you're sort of selling that and incorporating it into the nft it's like you're able to tokenize the

10:30whole m a and just and sell it and super easily like using the technology that the platform is actually designed for yeah and that's what we think is like really exciting and we've seen a lot of people are using nfts as as like a a social you know reputation based this is who my digital identity is and we've seen people not

10:56uh we've seen people get like insane offers to buy their their nfts but people are so attached to them or so much conviction in their personal reputation on chain that they turn down you know a 10 million dollar offer on a crypto pump that was like a one example but we think that we took the approach of like building a product and a brand around it not not so much

11:18our personal identity and i think the more that that becomes the norm the more you can integrate the transferability kind of the web3 you know d5 legos like everything becomes a financial product that you can that you can trade to transfer sell over time so i mean we think this is a really interesting way to to push nfts into like a new category of like what they represent hmm

11:48yeah i completely agree and it's crazy to see some of these crypto punks going for so much money and people just not willing to sell them you know but and i don't know if there's a correlation but you know it sort of reminds me of like when domain names were when they first came out and like people wanted to buy domain names for millions of dollars and

12:09people were refusing to sell them but those domain names now are not worth any almost nothing or you know compared to what they were it's more average price now do you see any similarities in the nft craze and how it's growing so quickly and perhaps it could be in a bubble that could come down but then could go back up as well as it sort of normalizes and

12:35st is more centered in society that's a good question i think um like from the domain perspective the ethereum name service ens is a great example of of domain squatting like people would go and scoop up all these domains back in back in the day and sell them and i think if you look at ens volume there's there's more desirable you know low character count brand name e s names

12:58that that actually sell for like a premium and then you have a handful just more generic stuff that maybe sells but it's not a there's like an infinite supply of ens domains there's you know there's only ever going to be 10 000 crypto punks they have a really strong heart you know being an og in a crypto space and i think a lot of that that i think those are kind of the key

13:20differentiators as opposed to like you know you know this this eternal supply of of domain names um but yeah i think that that's just the like the slight difference between between what you know a profile picture nft looks like compared to a domain name so i do think there's a strong um there's going to be continued growth in the nft space i think

13:49the nft projects that have kind of solidified themselves as the leaders in the space board apes crypto punks uh some of the other you know uh art blocks i think those are going to continue to drive value to to their holders to their community i do think you know the 10 000 profile picture wave has come and gone with every animal having its own profile picture so i

14:11think it's really kind of sifting through the noise and finding the things that are really going to last the next five to ten years definitely and i think that using dgn data's analytics would obviously bring more information to make a decision on whether this is something that's i it's going to be hot today and not tomorrow or something that might have long lasting value

14:36exactly and that's it's funny because like even in newer projects like a a good metric to be aware of is if you want to be in a project and have like liquidity and these these assets don't trade like everything else there's there's periods of active trading and then there's walls and so like if you're trading a brand new profile picture project there's

14:58usually like the first three to five days where people are actively trading them after they drop and this is because like people are trying to figure out what they have they don't know what they have they want to like you know speculate on what's the rarities of things like that it usually takes people about a week or so to figure it out and then you start to see

15:16the floor price kind of come down volume drop so again those are all the trends that you can start to kind of like isolate and build into some of the strategies that you might you know if you want to actively flip stuff it's better to do it early on than later if you want to invest for the long term you know find projects where you see high end high net worth

15:34collectors placing their bets and so those are some that just depends on your strategy depends on what you're interested in doing and those are some of the different ways that people are kind of analyzing these markets definitely thank you pat i appreciate all of that information that really does help with people that are just getting into nfts and they have no idea because there's so

15:54many different types and analytics are different from on-chain analytics for the viewers that are looking to continue to learn more use dgen data join in the communities what's the best way for them to stay uh in the communities and active yeah so you can follow us on twitter our twitter handle's at dgen data so we're always providing kind of market commentary

16:18things that we're seeing projects that we find interesting um or if you're just curious to explore the tools um you can go to dgndata.io and if you get if anyone ever has any questions and our twitter dms are open we're always happy to answer questions that people have so those are kind of the two the two main platforms that we can be reached at amazing i will leave those links in the

16:39description box below as well all the best moving forward good luck with the crypto punk and the whole platform all together and let's follow up in the near future pat sounds great thanks ashton