The $40m Portfolio of NFT Venture Fund 121G Is Worth Under $2 Million Today

There is tremendous excitement regarding non-fungible tokens and the monetary opportunities they represent. However, not all investments will go well, not even when a big fund is involved. The 121G fund, which invested $40 million into NFTs, has seen a rather bleak performance. 

Where Did 121G Go Wrong?

The purpose of the 121G fund is straightforward. It is an NFT venture fund investing in “high-quality projects with long-term potential”. That may seem simple, but there aren’t many long-term viable projects in the non-fungible token industry. Even if collections reach a high floor price, they will often face setbacks eventually. That can spell disaster for funds and its investors, and 121G users won’t be too happy with the current performance. 

It is rough to gauge the value of the 121G portfolio. Adding up floor prices based on the number of NFTs held in that collection isn’t necessarily the best approach. However, it indicates whether the collection the fund invested in has long-term potential. Most non-fungible token collections aren’t high-quality, especially as time progresses. Considering the team bought Moonbirds and Pudgy Penguins, one would expect a strong performance from its other holdings. 

Unfortunately, the “long-term potential” of the other holdings has seemingly been overstated a bit. The fund has a strong value in The Potatoz, The Captainz, and OnChainMonkey. However, some of its other choices, including MPL Official, Tableland Rigs, OCN Karma, and Art Gobblers, have seemingly not paid off. One user points out how the $40 million fund now has under $1 million in NFT holdings, although some details may be missing. Some funds are also kept in ETH.

Looks like @ryancarson's $40m NFT fund is down to ~$921k. Or am I missing something? pic.twitter.com/hQzQGdkWxE

— Aaru.eth (@AaruCrypto) February 28, 2023

All of these collections may rebound. There is certainly more value to unlock for Moonbirds and Pugy Penguins. In addition, the Creepz and PROOF collective collections aren’t performing too terribly either. However, investors may not be too amused with the current status. Even if the 121G fund still holds $5 million in non-fungible tokens, that would result in a loss of over 85%. Some of that can be blamed on weak market conditions, but NFTs aren’t all they are made out to be either. 

Will Things Improve?

People who trust others to make investments on their behalf will likely encounter issues sooner or later. That doesn’t mean investing directly would have been a better option. Like cryptocurrencies, NFTs have been very volatile and continue to experience ups and downs. Moreover, only select projects have long-term appeal, either through utility or speculation. Unfortunately, most investments by 121G fund do not fall into that category.

It is worth noting Ryan Carson seemingly leads the fund. Those who had hopes for seeing him share information on the portfolio and future plans shouldn’t look at his Twitter feed too much. However, Carson became interested in Bitcoin Punks thanks to Ordinals building momentum. Whether that gamble will pay off is tough to determine. There is temporary excitement surrounding Bitcoin on-chain NFTs, but its long-term appeal remains undetermined.

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