Just recently, CyberKongz holders were earning
$800 a day by holding a single NFT.
Now, of course, these NFTs are now very expensive.
However, they were originally priced at 0.1 ETH
or a few hundred dollars each.
That's the price point that you would want to get in at.
So here's how this is going to work.
I am going to share with you
And then I'm going to give an example of a project
that uses each of those methods
to earn passive income.
The first type is what I'm calling NFT dollar drops.
Now I came up with this term because
I haven't come across a better
name for this method yet.
So if this term picks up steam,
you know where you heard it first.
Basically how this works is
an NFT project will launch
alongside a native token.
NFT holders are then rewarded a
certain number of tokens on a regular basis
simply for holding that NFT.
Usually it's done daily.
This can be very profitable
if the NFT token takes off in price.
An example of this, and by no means
is this a recommendation to buy, is BearX,
a collection of 3,700 genesis bears.
By owning a BearX NFT,
holders get ten $ROOT tokens a day
which, at current prices, is about $10.
This means by holding five BearX NFTs
that's about $50 a day,
If you could manage to purchase five BearX NFTs
on the low end, you'd be paying anywhere
between $10,000 and $12,000
and this would generate about $1,500 a month,
which is a pretty insane ROI.
Now again, income on BearX
is subject to the price of the $ROOT token,
which could be a little bit concerning.
The volume of the chart looks very poor and the
price is continuing to decrease.
So just be careful before
aping yourself into any new project
because there are plenty of cool projects
like this one, that you can earn money off of.
One thing you'll notice about this collection
is, they say on their home page
$ROOT is made as an extension to the BearX ecosystem
and is a utility token but predominantly built for fun.
It is not an investment and has no economic value.
This shows me that the BearX creators
are well aware of OpenSea's terms of service
regarding passive income with NFTs.
And it's really important that you understand
what I mean here.
Regulators may begin to consider
income earning NTFs as investment securities.
In the US, according to the Supreme Court,
anything that meets these four criteria
under the Howey rule, are considered
an investment security.
First, the existence of an investment contract.
Second, the formation of a common enterprise.
Third, a promise of profits by the issuer,
and finally, use of a third party
to promote an offering.
This means NFTs could be considered securities,
especially if they offer passive income.
And because of this, OpenSea forbids
any NFT project that advertises
paying out real passive income to its holders.
Now this isn't a legal issue.
OpenSea simply just doesn't want to deal with
the bureaucracy of the SEC
in case there is an official decision
made down the road against
passive income with NFTs.
So for now, it's a bit of a gray area
and you need to proceed with caution
and none of this is financial advice.
This is all for entertainment purposes only.
All right, now that it's only degenerates
watching past this point, let's just go ahead
and continue, shall we?
Because the second type of passive income
through NFTs is Profit sharing.
This is really interesting.
NFT projects make money through direct sales
and through royalties on future trades,
and certain NFT projects will share this
income with NFT holders as a kind of
thanks for being a member and an incentive
to stay a holder because you keep making money.
Now what's really interesting is
Now what I mean is if you earn enough passive yield
holding your NFT, you may be able to
collect enough rewards and sell them off
to cover the original cost of your NFT.
That's kind of the big brain method because
then you're not worried about the immediate price
because you already recouped your entire investment.
Now, one project that does profit sharing
is called NoiaDucks.
They're a collection of 1000 NFTs, which
to me kind of looks like CryptoPunks with ducks.
Honestly, it's a little bit unoriginal,
but either way, they caught my eye
when I saw a tweet about the project's
generous 100% royalty and 51% profit sharing
from the marketplace.
Because they have such a low supply
of only 1000 ducks,
But of course this depends on volume traded.
The average NFT here is selling for around
$3,000, so it doesn't take much
for the community to earn some pretty good income.
Now another thing that I want to point out is
So here's a few questions that you should ask yourself.
NFTs can be really volatile
if something goes wrong in project,
and this can just crash the value.
If you're going to invest in
passive income earning NFT projects,
because this will help you ensure
you don't miss anything important
if you have to sell.
Like I said earlier, there's a lot of opportunities,
so there's no point in investing in
a stinker that is stressing you out.
I'll have my free NFT checklist
linked in the description for a good starting point.
Something else you may be interested in
is a better place to buy and sell NFTs.
This is because I have partnered with FTX who just
expanded their NFT platform in a big way.
And the reason I happily partnered with them
is not only because I'm a huge SBF fanboy,
but because they're making huge improvements
within this space.
The reason this is special is because of gas fees.
I've bought NFTs in the past and it
always kills me to pay $50+
just to make the transaction.
FTX allows you to buy Ethereum NFTs
with no gas fees on bidding,
buying, selling or listing NFTs
and platform fees are 20% lower than OpenSea.
They're able to do this by offering
in-house custody of assets, which
also offers great security.
FTX is actually the only
platform that allows you to purchase both
Ethereum and Solana NFTs in one
single place, and they're also the first
open NFT marketplace to allow mobile trading
on their FTX app.
I'll have them linked in the description below.
The next form of passive income is through NFT staking.
This is very similar to the
dollar drop method that we mentioned earlier
with an additional step of staking.
Again, this is smart because it incentivizes people
to buy and hold longer term
instead of continually flipping their NFTs.
One project that does this is Wulfz NFT.
Well, currently they don't have a website.
They do have a strong community
and high engagement on their Twitter.
Owners of Wulfz will be able to
stake their NFTs in order to earn
$AWOO tokens every day.
Sometimes I wonder what I'm doing with my life
reporting on $AWOO token.
The next form of passive income
through NFTs is through mining.
This is a really interesting one.
So essentially how it works is you would buy an NFT,
stake that NFT and then
So it's kind of like buying a share
in a crypto mining company through an NFT,
except I'm sure that they have to legally say
they do not offer an expected return on investment,
otherwise they would fall into that
investment security territory.
Now, one project that's doing this
is called Enigma Economy NFT.
They're a mining collection that will mine
Bitcoin and Ethereum according to their roadmap.
This means instead of being paid in an NFT's
native token, like $AWOO,
you'll be paid in Ethereum or Bitcoin
or whatever a project is mining.
For Enigma, the amount of Ethereum mined
per NFT depends on the rarity traits
of the NFT that you purchased
and also the earnings that you're making
are going to change, of course, depending on the
price of Ethereum or whatever you're mining.
So let's say the price of Ethereum stays at $4,000
and you're earning at the low end of
half an ETH per year
with your Enigma Economy NFT,
which is $2,000 per year.
To earn $57 a day with NFTs,
you need to be making about $1,700 a month.
To make close to this amount with these
NFTs, you would need to own ten of them.
Ten of these at the cheapest price,
which is 0.25 ETH would cost around $11,750
for something that makes you $20,000
per year doing nothing.
That's not a bad potential investment.
However, again, this space is very new
and very volatile, so don't ever
expect best case scenarios.
Now the last type of passive income I want to discuss
is renting your NFTs,
specifically through play-to-earn games.
With many play-to-earn games,
you have to buy an expensive NFT upfront
in order to then play the game and start
actually making money with that game.
Once a game becomes popular,
these NFTs can get really expensive
and because of this, a new market has
cropped up and this actually might be my
favorite version of passive income on this entire list.
NFT Renting.
You see what I'm getting at here.
So you can own an NFT
that others want to use in a game,
and you can start earning money by renting it out.
Vulcan Forged is a game that will allow
allow exactly this to be possible.
Land in the VulcanVerse is an NFT.
This land is needed for players
to unlock new assets.
Those who can't afford to buy NFT land
within the VulcanVerse will need to rent it.
Those people who rent the land can then
play the game and actually start making money
from the game.
And this is important because
on the Vulcan Forged marketplace,
some of the land is insanely expensive,
selling for 845 PYR tokens
or about $32,000.
So as crazy as it is to buy
or rent digital land that costs $32,000,
like as much as some real land,
this is one of my favorite methods for
NFT passive income because it's so easy to grasp.
You know, renting assets is already a thing.
If I want to go drive a tank down my street,
I'm going to rent a tank
because I definitely don't want to keep up with
tank maintenance myself.
So the key to earning passive income with NFTs
will be doing a massive amount of research
upfront to ensure all the boxes are checked.
You want to ensure there's a solid team,
a solid idea, and a solid community
behind the project to help hedge
your downside risk.
And if all of that work sounds like
too much work, you can always just stick to
good old yield farming altcoins
or lending out your crypto.
In fact, I just did a video on
how to get the best possible rates
when lending out your crypto, that you definitely
need to check out next.
I'll have this clickable on the end screen.
So we sure live in the best time ever to make money.
This is pretty darn exciting.
And if you want more money making content and
access to my portfolios, check out my Patreon
community, linked in the description, for as little as
$10 a month.
Now I would just like to thank you so much for watching,
and I hope you have a profitable day!