This voice AMA with Tribe3 team was on Discord on 17 August 2022.
This a transcript recap of all the questions and answers from this AMA. There will be 3 separate recap for these 3 sessions.
AMA Sessions:
Speaker:
- Leo - Founder
- Jeff - Product Lead
- Jo - Growth Lead
- DavN - Moderator
Session 3 - Live Q&A Session
Q1: Will Tribe3 have its own NFT collection?
Leo: Great question. If you think about our NFT Avatar feature, all the in-game items that users are going to win are actually NFT items themselves. So it is very much like game-fi concept. The way that we think about it is almost like an RPG game, so each and every single in-game items that traders can win will be NFT items themselves. And ultimately after they will have fully customized their NFT Avatar using those in-game items, that NFT avatar can also be minted as a standalone and unique NFT that is fully customized by each trader. On top of the utility that you can get from some of the in-game items like saving transaction fees or battle fees etc. You can also mint this personal NFT Avatar, which finally represents you as an NFT trader, but not just a generative art that is generated from a bunch of codes from different collections.
Q2: There are several problems we often encounter in the current way of trading NFTs: inefficiency, expensive, inflexibility and illiquidity. What will tribe3 offer to eliminate these problems?
Leo: We have gone through the reasons why we should trade NFT Futures early in this AMA but here’s a recap:
- A minimum ticket size of as low as 0.01 ETH. In the spot market, if you want to get exposure in the BAYC, you actually have to put in 60ETH+. Not many retail NFT traders actually have that amount of ETH and many ended up being priced out and forced to put ETH into low quality collections. With NFT Futures, you can actually speculate on BAYC floor price going up or down, just with a small amount. This obviously unlocks a lot of liquidity and help a lot of retail traders who finally can get exposure into iconic collections such as CryptoPunks, Doodles or BAYC etc.
- Illiquidity wise just because we're not trading underlying NFTs. Everything is on a futures contract basis with much lower entry amounts, the availability of leverage and shorting also would appeal to crypto traders on the sidelines who have been waiting for an capitally efficient vehicle to trade the NFT market as well - so this unlocks a lot of liquidity and improves price discovery.
- In terms of expensive, open platforms cost 2%-2.5% fees plus royalties to do a flip. On our Tribe3 platform because you're not actually trading NFT underlying spot and not owning any NFTs, there is no royalties. On top of that, our platform actually only charges 0.5% on each notional trade. So that should be much less than the 2%-15% in terms of transaction cost.
- Inefficiency as well. In this case, because it is futures and you can have leverage. So even if you only have one ETH, you can leverage up to get a 5ETH worth of BAYC position that allows you to basically have huge potential gain with a very small amount of capital. That's obviously something that the communities have told us they're very excited about.
To sum up, futures really unlock a lot of liquidity because operationally and capitally it's much more efficient than buying and holding NFTs on a single NFT basis. That would be Tribe3 angle into solving a lot of the trading pain points that NFT communities have.
Q3: Who are the target users for tribe3? How does tribe3 plan to expand to different groups of users?
Leo: Excellent question. I guess some of you already get the sense that the first group that we target is definitely the native NFT community. So people who already have been trading NFTs or in possession of a couple of NFTs. I think a lot of them have been hoping to get exposure to top NFT collections but they have been priced out at the moment. Plus, from our observation, many NFT collectors actually have a diamond hand portfolio and would like to hedge their positions from time to time. Currently, there's no way for you to do that. So that's only the first layer of users will be from the native NFT community.
The extension of that would be what I call the NFT curious crypto traders. If you guys remember in the NFT community, when APE coin first came out, the market cap of APE coin itself was over 30 billion dollars which at that point entire NFT spot market was only 10 billion, which means one APE coin market cap on the FTV basis which is fully diluted value basis is three times the size of the whole NFT market. Now that's suggesting to the Tribe3 team that there were a lot of crypto traders and institutional traders that came in and speculated on APE coin prices at that moment. Even until today, the daily trading volume is around 200 to 300 million dollars which is more than spot NFT trading volume in a week. So we think that there's a lot of potential and liquidity that's locked up right now in the crypto trader space and these are active traders that would love to trade against the NFT community. Currently they just don't have the right tools to do it.
NFT in itself is not a vehicle or not an instrument that they're used to trading given that it is not a operationally / capitally efficient trading vehicle. By introducing futures into the equation, they are able to finally have something that is native to the crypto traders themselves. I think many of them won't hesitate to jump in right away.
Q4: What is the use of the offered NFT badge after we are actively trading? After a lot of buying and selling activities we will also get a commission or gift? Or is it just a useless badge?
Leo: There are different things on that Avatar system that a user can win on. Badges and achievement is no different from any game for a project or a lot of the Web2 games.
On the in-game item itself, they actually are like NFT items that you can trade on the secondary basis with other traders. We think about it on top of providing utility and as a form of aesthetic skins as well. It's also a secondary degree of monetization for traders. You're not only making gains in the trading system by making trades, but also winning items, which eventually you can offload and sell for Tribe3 tokens in our native platform or in the Opensea or other NFT platforms as well.
Q5: What kind of plan or security protocol did you have in place to tackle system hacking. If you're aware, Solana network was recently hacked and people lose their funds, so what kind of security protocol did guys have in place to tackle such a problem? Also, how can we be so sure there won't be a rugpull in your project. Because, honestly, this is what I fear the most.
Leo: In terms of security risks, just like any other projects, we go have smart contracts audit done by a reputable third party auditing firm and be fully transparent with the findings / audit report so that will be completed before mainnet.
On rugpull side, we're not an NFT collection where we are asking for minting fees or collecting funds in advance from users so theres no “rugpull”. Traders only deposit funds into collateral vault governed by smart contracts.