AdaCards

Hello :cardano: community :wave:
Assist me in analyzing “Cardano NFT Stake Pool Trading Cards.”

Disclaimer

AdaCards digital collectables are designed solely for entertainment purposes and have no inherent monetary value. It is important that purchasers of these tokens do not treat them like an investment vehicle and have no expectation that the value of the assets they own to appreciate in value over time.

Each “one-of-a-kind” trading card commemorates a Cardano block and showcases the stake pool that minted it.

At the time of this post, there are 5,609,238 blocks minted. A card can be minted for each of these blocks. Unlike NFT’s with limited supply, AdaCards supply is unlimited.

Stake pools interested in participating in AdaCards NFT’s are charged 500Ada fee, that is “small stake pools.” “Large stake pools” with well established reputations are leveraged as on-boarders. There is very little transparency, about 10 of the 33 stake pools did not pay a fee.

33 stake pools being charged 500Ada fee amounts to 16.5K Ada, this figure is unreliable as we do not know for certain which stake pools payed the fee and which did not.

There are 10k AdaCards for the first release.

They are sold as a pack of 5 cards, which amounts to 2,000 packs.
The rational given to the stake pool operators for charging a 500Ada fee is “to keep the price low,” specifically 50Ada per pack of 5 cards.
The price has been arbitrarily increased to 100Ada per pack of 5 cards, starting from pack 201-2000. There have been issues with transparency throughout this release.
Expected profits from the first release are calculated at 190,000 Ada. Stake pools supply raw files for the artwork, stake pools advertising the release, stake pools back the project with their reputations, and stake pools buy the cards, yet stake pools receive non of the profits. The “incentive“ under which this project is sold to the stake pool operators is “marketing.” It remains to be seen if the project delivers on their promos of “marketing.”

This NFT is sold as a marketing opportunity for small pools. One card is assigned to one block, large pools (some of which operate multiple pools, and are near saturation) do not pay a fee, and receive a higher circulation in AdaCards capes at 500 for this release. Smaller pools that have minted only several blocks get to release several cards into the sea of 10,000. The claim that AdaCards NFT promotes small pools is misleading, 33 pools are featured out of 2500 for a 10k Card release, while generating a profit of around 200,000Ada. Out of the 33 pools featured, only a handful are “small pools,” some of the pools are pool groups that they run multiple pools that are near saturation. Creators of this NFT single out their own pool in promotions.

In this clip you can see AdaCards falling on top of each other, effectively blocking bottom cards from view. The only card that is in gold (legendary rarity card) is the “viper” card, right on top. Most the pools have at least one “legendary reality card,” get viper pool is the only one singled out here. “Viper” pool is given preferential treatment on the website and AdaCards search engine. If you search through AdaCards using their engine, the first several hundred cards are all “viper”.

Here are some of the concerns/comments/questions of the community members:

@secure_staking_rene
Hey folks. Honest question. Why are you asking 500ada from SPO’s on top of support in the form of providing raw materials for your artwork? Feels like you are trying to eat from both sides.

I appreciate your elaborate answer and I’ll give you my perspectve. While I understand you think it’s a marketing opportunity that is worth 500 ADA I’ll give you two counterpoints:

  1. our go to market strategy is not built on marketing so I don’t value it that much

  2. you are similary leveraging on the brands of the pools in your sale. So I would say that there is at least equal value exchange there.

Also, hours of work for $500 doesn’t add up to me. I trust that you spend hours on the artwork. I have similarly spent hours on producing the logo and tagline. But count that back to an hourly wage and compare that to comissioning it on Etsy for example. I can easily issue it as an NFT myself given the skill I have built as an SPO.

Thirdly, don’t forget you get remunerated through the sale. You determine the sales price of the card and (I think) sell the card multiple times. It is doing business like everywhere else, you need to do the investment upfront and take that risk. If you are asking me to cover your risk, then I want to participate in the earnings.

Finally, and hopefully most helpful, I think you are packaging too much into this deal for the SPO. It’s a marketing opportunity, commisioning of artwork and licensign deal all at once. As it stands, it’s not appealing to me, but I would likely say yes to allowing you to use my brand and logo to issue a card and potentially profiting out of that.

Happy to share my opinion. My angle is not to only to challenge you, but also to help you depending on what you want to achieve. If you are looking for exclusivity, then I think you are on the right track. If you want to include as many pools as possible then I think my first three points are context and my final point provide avenues for a solution offering different deals.

In your response I can’t really distill counterarguments to the points I raise. You say that you discussed it within the team and this is what you arrived at. And you want to keep the sales cost low, but why do you expect SPOs to cover the costs then?

The fact that others are doing it has never been nor will be a conclusive argument for me to also do it. Everyone should always make their own decision based on their own analysis.

The fact that you acknowledge that it acts as a buffer is exactly my point. Doing business shouldn’t be risk free. If you need funds to get your business started, then get a loan or be open about that you are asking for help instead of packaging it as a marketing deal.

@Jennyc1ta
If small pools don’t get visibility with trading, what’s the incentive?
You charged the little guys, making big money and then that, sounds tone-deaf to say the least.

Anytime anyone asked a difficult question, the response is a “non answer”

For example;
“Hey buddy. All good questions. I think the best thing is for you to wait for the second release. I think most of your questions will be answered at that time since you will be able to see how it works. Thank you for interest and time!”

This NFT is leveraging well established, reputable stake pools, as well as Cardano ambassadors. This NFT release needs to be looked into.

This thread has a lot of work to do. Once it is polished, it will be used as a blueprint for video content.

Also “sunny” pool is a strong supporter of AdaCards NFT be it a “cash grab scheme” or a legitimate project. Sunny pool has worked tirelessly to silence the critics of this project. If you loose money on this NFT, you know who to un-delegate from.

There should be a space on the forum for denouncing money grabbing schemes. Leave your two cents down below.

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