Market Psychology Is Weird

Last night at around 3am, I found myself still awake. I found out around 2 that the two legendary cards Baakjira and Uriel The Purifier were released as an airdrop to people who had purchased packs during phase 2 of Splinterlands' presale.

Here are the two cards:

Unfortunately, I did not get either of these cards in the airdrop (so it goes when you are a low roller I guess), but I was determined to pick up Baakjira on the market because it looks like a card that will be important in strategy going forward.

What I witnessed in the market in the immediate aftermath of the drop was a massive dump full of people undercutting prices. I know that many airdrops get dumped, but I got to watch it play out in real time as each time I hit refresh on the Baakrija card in the market, it basically halved in value.

The first listing I saw was for around $800. One refresh later, I saw it for $300, then $200, then $100, then $50, then all the way down to $25 (I think I saw it hit $22.5) where I purchased one.

This may not seem impressive or important to someone who studies airdrops and their effect on the market, but for me it was very educational. It showed that the real winners in an airdrop (that eventually recovers) are the ones that set their own price and just wait. I placed a buy order on PeakMonsters for $25 and watched as rapidly the value approached that price mark and I eventually filled my order.

That is where the need for research comes in. When people get free stuff, a lot of them decide that they would rather convert it to cash (or cash equivalent in the form of DEC), so if you have a rough idea of where you believe the asset should be valued and you are patient enough, there is a good chance that your orders will get filled at the level you believe to be fair value. Of course, the price could have just skyrocketed to thousands of dollars for this card, but I made a prediction based on the value of the other legendary cards available on the market at the time.

Did you get involved with the airdrop via the market? Let me know what your experience was with all of this. I think markets are just the weirdest things to exist.

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Who I am: My name is Rob and I am a prospective law student with interests in cryptocurrency and blockchain. I have enjoyed my time thus far engaging with Web 3.0 and am looking to continue learning more and sharing what I learn through my experience

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