One‐Pager for PAK A Cubes (@muratpak) – Disrupting Digital Art by Creating Scarcity
May 23, 2021
Summary
- Leading anonymous figure in the NFT art space, often employing algorithmically driven geometric shapes and sharp contrasts in black and white.
- A developer skilled at coding and digitally native designs (separate from 99% of artists) o Active in the world of digital art for over two decades
- Social impact: while seemingly simple, PAK works tend to create controversy and discussion o Challenges status quo: for example, The Title collection are identical NFT images leading to the same file, but with different titles and vastly different prices
- Top creator: Two of the top 5 NFT art sales are PAKs (Metarift, The Pixel). 3rd most popularly traded NFT creator on Nifty Gateway
- First Sotheby’s NFT sale (~3,100 buyers and ~$17 million in total proceeds) ▪ The Fungible Collection – “A novel collection of digital art redefining our understanding of value”
- Open Edition consisted of different denominations of Cubes
- ~6.3k NFTs minted, by far the most offered by PAK
- Collector focused: Engages/rewards collectors big and small
- Free giveaways to people who predicted correctly / significantly impacted NFT art space
- o Whale rewards: (“Complexity”) for the top 100 buyers of Fungible Open
- Extremely generous: supports community development
- Supremely clear communicator and wordsmith: keeps market engaged
- NFT Cubenomics – both NFT art and a token
- The crucial innovation from PAK is the announcement of Burn.art and PAK’s token ASH (ERC20)
- PAK’s NFTs (excluding collaborations) can be burned for 1000 ASH at the start
- Amount declines continuously according to a curve, halving first at 5 million ASH supply
- High‐tier burns (PAK NFTs with other artists/collections added in time) yield 1000 ASH and low tier burns (all other NFTs on Rarible, SuperRare, etc.) yield 2 ASH at burn launch
- Built in utility: PAK will accept ASH on certain future ASH‐exclusive drops
- PAK starts with 0 ASH and likely can destroy the ASH received ‐> strong tokenomics
- o Ready to scale: ASH accepted by Opensea.io (and other marketplaces+artists in time)
- Problems solved: creation through destruction. Reduces PAK NFTs, especially the cheaper ones
- Quantitative
- 5,148 A Cube NFTs minted, cheapest PAK NFT and ~2,200 A Cube NFTs burned (43% of total) ∙ Currently 1 PAK NFT yields 760 ASH; current ASH supply of 2 million = mkt cap of $6 million
- ASH/PAK NFT floor will be ~600 ASH (if all PAK NFTs burned)
- ~25 5 Cubes and higher NFTs burned: multicubes could have utility
- PAK 1/1s have gone for $1.3‐$1.4 million (The Pixel, The Switch) in H1 2021
- Comparable mkt cap: Beeple has ~5100 Everydays. Conservative total sales for NFTs of $1 million / Everyday ‐> Beeple mkt cap of $5 billion as of May 2021
- Mechanism for Burning PAK NFTs: you cannot burn PAK NFTs via Nifty Gateway. Deposit NFTs into your crypto wallet and connect it to burn.art when ready (same as connecting a wallet to any site). Ensure it is the RIGHT site and avoid imposter sites