The Doodles 2 Collection
Breaking down the potential impact(s) of Doodles 2...
In today's edition of The Ground Floor, we will be focusing on Doodles 2, and the potential impact of Doodles increasing its supply by 4x in the coming months.
The Doodles 2 Collection
Is this the most important week in Doodles history?
Earlier this week, Doodles announced the acquisition of the award-winning animation studio, Golden Wolf — widely regarded as a top animation studio that has created content for Rick & Morty, Nike, Disney & many others.
On top of this acquisition Doodles will be kicking off Doodles 2 this week, with Dooplicator token holders being the first to receive the opportunity to participate in Doodles 2.
What Are Doodles?
Founded in September 2021, Doodles is a collection of 10,000 generative NFTs created by Evan Keast (Tulip), Scott Martin (Burnt Toast), and Jordan Castro (Poopie).
Having already experienced the trials and tribulations of building an NFT project during Tulip's & Poopie's time at Dapper Labs, combined with Scott Martin’s extremely unique artistic style, the team was perfectly poised to launch Doodles in October 2021.
The team raised 420 eth from the release of their collection, charging 0.123 / Doodle.
The artwork immediately resonated with NFT collectors, and the high demand for Doodles resulted in the average sale price increasing 10x in the 48 hours post mint.
Today, the floor price of a Doodle is 7.75 ETH ~ $12,000 USD, up 35x from the mint.
📈 The Expansion
To date, the Doodles team has been very diligent in increasing the supply of Doodles.
Instead of introducing new characters as many companies such as Yuga Labs have, Doodles instead opted to allow collectors to augment their Doodles with Space Doodles.
Nonetheless, when Doodles released their Dooplicators in May 2021 ~ the company confirmed their ambitions to create millions of Doodles such that everyone can create a Doodles profile picture that's personalized to their preferences.
"It all starts by personalizing your look with attributes like body, hair style and emotion.
From there you will be able to customize your Doodles with wearables (apparel, accessories, gadgets + more)."
In May & July of 2022, Doodles released the Doodles Dooplicators & the Doodles Genesis boxes — the NFTs that allow collectors to participate in Doodles 2.
This approach is designed to slowly open up the supply of Doodles 2 collection by introducing 33,000 Doodles 2, however, questions remain regarding the long term impact this new supply will have on the value of Doodles 10,000 genesis collection.
The Good News
Profile picture NFT projects have an extreme advantage when it comes to building brand awareness on the internet in 2023.
With thousands of collectors adopting a Doodles NFT as their profile picture, collections like Doodles are capable of having their artwork viewed millions of times each month with collectors building brand awareness on the brands behalf.
As such, if Doodles are successful in onboarding hundreds of thousands of collectors to their collection ~ and in time, millions of collectors that adopt Doodles as their profile picture, then undoubtedly Doodles brand awareness will skyrocket.
Doodles also confirmed that they will be working with social media platforms on native integrations for Doodles, and it looks likely that Doodles will be working with Instagram on a native integration ~ an industry first for a profile picture NFT collection.
The (Possible) Bad News
It's certainly plausible that as Doodles brand awareness increases — so will the demand for Genesis Doodles as they become much more recognizable status symbols.
On the other hand, the value of any good is determined by supply vs demand.
Today, 10,000 Doodles exist, however, in a world whereby this supply increases by 4x to 43,000 in the coming months, and in the coming years 200x — it's certainty possible that the demand for the original Doodles collection declines as the existing collectors sell their current Doodles, in favor of adopting a lower priced Doodles 2.
Such a decline in the prices of Doodles could very conceivably further drive down the prices as these "Veblen goods" where the assets price is extremely correlated to the assets value.
Why would this happen?
Very similar to a Rolex watch, the value of a Doodles today is best explained by how expensive these assets are to purchase, and how effective they are as status symbols.
This works great when the price of these assets increase, however, when the price declines — so does the value of a Doodle as a status symbol.
📷 More Profile Pictures?
Doodles acquisition of Golden Wolf is the best evidence of the companies ambitions to create a successful Web3 brand that focuses on multiple channels.
As such, when painting any picture of Doodles future, it's important to highlight the company's ambitions beyond creating NFT profile pictures.
The company has confirmed that gaming, animated content & NFTs are 3 of the channels they will be focusing on in the immediate future.
📡 Looking Forward
To onboard millions of consumers, the Web3 World needs to move from a pricing model where we seek to sell a small number of expensive assets to a limited number of people, to selling a large number of lower priced assets to a large number of people.
Doodles 2 appears to be an exact embodiment of this approach being put into practice, which is why I am beyond bullish on the brand Doodles are building & I have the utmost confidence that Doodles has put itself on a path to become a household name.
Nonetheless, as companies such as Doodles introduce new lower priced NFT, it remains unclear at a macro level if the prices we currently pay for the "top NFT collections" will be upheld as millions of new consumers are onboarded to NFTs.
💡 Web3 Roundup
P.S. What did you think of today's newsletter?
See you next time! — OB1👋
This newsletter is for informational purposes only and does not constitute financial or business advice to any person or entity.