In a recent episode of Unlayered, hosts sat down with Michael, known as @fxnction on Twitter, to discuss the current state of the cryptocurrency market, the evolving landscape of NFTs, and the importance of community in the crypto space. As a prominent figure in the crypto world with over 125,000 followers, Michael shared valuable insights on trading, market trends, and the future of digital assets.

The Current State of Crypto Markets

The conversation kicked off with a discussion about the current state of the crypto markets. Michael expressed optimism about recent developments, particularly the positive news surrounding XRP and the overall market bounce. He noted that the tide seems to be shifting not only for Solana but for the broader crypto ecosystem as well.

"I feel good overall. I'm excited, you know, I've been participating in ordinals and a whole bunch of different new ecosystems that have been growing. And seeing the market bounce and seeing the XRP news is just bullish," Michael shared.

This positive sentiment reflects the growing confidence in the crypto space, especially after a prolonged bear market. The mention of ordinals, a new development in the Bitcoin ecosystem, also highlights the continuous innovation happening in the industry.

Michael's Crypto Journey

Michael's journey in the crypto world began in late 2017 when he started working full-time in the industry. He gained popularity on Twitter under the pseudonym "Shell Nye," a play on the name Bill Nye, with a Bitcoin-themed profile picture. This early foray into crypto allowed him to travel the world, attend conferences, and meet key players in the industry.

"I started crypto full time at the end of 2017 and started to be public in 2018. If you're around back then, most people know me as Shell Nye," Michael reminisced.

During the bear market of 2018-2020, Michael experienced the darker side of the industry, witnessing the negative sentiment and anger that often accompanies market downturns. This experience led him to take a brief hiatus from crypto to pursue his passion for music.

The Rise of NFTs and @fxnction

Michael's return to crypto coincided with the NFT boom. He created the @fxnction account on Twitter, which quickly gained traction due to his humorous content and successful trades. The account's popularity soared, reaching over 125,000 followers.

"I made this function account just for fun, didn't expect for it to pop off, but made a lot of dick jokes, made a couple of good trades. And all of a sudden I have 125,000 followers," Michael explained.

This rapid growth in followers demonstrates the power of combining humor with valuable trading insights in the crypto space. It also highlights the increasing interest in NFTs and the communities forming around them.

The Intersection of Crypto and Music

Given Michael's background in music, the conversation naturally turned to the potential for crypto to revolutionize the music industry. He sees significant potential in areas such as ownership of music, royalty distributions, and innovative ways to experience music.

One exciting development Michael mentioned was an interactive music video tool created by his friend, Samuel Del Rio. This tool allows viewers to experience a music video as the main character, collecting tickets (potentially NFTs or tokens) along the way.

"Instead of just watching a music video, you can actually go through it as the main character of the music video, collect these little tickets that could actually be NFTs or they could be tokens and experience the music video from the perspective of the viewer, of the consumer," Michael explained.

This innovation demonstrates the potential for NFTs and crypto to create more immersive and interactive experiences in the music industry, potentially revolutionizing how fans engage with their favorite artists.

The Evolution of Artist-Fan Relationships

Michael emphasized the potential for NFTs to transform the relationship between artists and their fans. He believes that NFTs can break down the barriers traditionally created by record labels and production companies, allowing for a more direct and equal connection.

"There's a whole new realm to explore and a whole new perspective to explore where the fan is actually more equal with the artists themselves and has the ability to connect with them and experience what they experience and experience their creations to a whole new degree," Michael stated.

This shift in dynamics could lead to a more democratized music industry, where artists have greater control over their work and fans have more meaningful ways to support and interact with their favorite creators.

The Middle Ground for Artists

The conversation also touched on the potential for crypto to create a "middle ground" for artists who may not achieve mainstream success but can cultivate a dedicated following. This model could allow artists to make a healthy income without having to "sell out" or create generic music for mass appeal.

"Maybe you know, you and I as regular participants in this journey for the artists can benefit from but also the artists can support their lives as a creator without having to you know, sell out and just make the most generic pop song that has the broadest appeal, right?" one of the hosts suggested.

This perspective highlights the potential for crypto and NFTs to create new economic models that support a diverse range of artists and creative expressions.

AI and Crypto: A Powerful Combination

The discussion then turned to the intersection of AI and crypto, a topic that Michael finds particularly interesting. He sees significant potential in how these two technologies can interface and collaborate.

Michael shared an example of this convergence: "I don't know if you guys have been on Twitter and watching like Jim, Rose Tim Jim, you know, it's like this AI bot that you can tag and it's pretty much the most viral sensation on Twitter right now and it's paired with a crypto token."

This AI-powered Twitter bot, which can create roasts or praises based on user requests, demonstrates a unique way of integrating AI with crypto. It's gaining massive traction, with 20 million impressions daily, showcasing how AI and crypto can come together to create engaging social experiences.

The Social Nature of Crypto

Michael emphasized that crypto is fundamentally a social game and a social experiment. He argued that the success of any crypto project, whether it's a coin or an NFT, is largely driven by social awareness and community engagement.

"I think what people fail to realize a lot of the times is that crypto is a social game and it's a social experiment mostly, you know, like the only way something ever becomes popular and whether it's about awareness or really whether it's about floor price going up for an NFT or price going up for a coin, it's through social awareness," Michael explained.

This perspective highlights the importance of community building and social engagement in the crypto space. It suggests that successful projects need to focus not just on technology, but also on creating and nurturing active, engaged communities.

The Role of Memes in Crypto

While some may dismiss meme coins and projects as frivolous, Michael sees them as an important part of the crypto ecosystem. He argues that memes and humor are what make crypto interesting and accessible to newcomers.

"I think that that's what makes it interesting to the normies and to the people who haven't interface with the technology before. Like those guys, like people who are coming into crypto don't give a fuck about transactions per second. They don't care if your blockchain is interoperable or if it's a new goal. They don't even know what those words mean," Michael stated.

This insight suggests that while technical aspects are important, the cultural and social elements of crypto projects play a crucial role in adoption and engagement, especially for newcomers to the space.

The Value of Speculation in Crypto

Contrary to some opinions that crypto needs to find non-speculative use cases to thrive, Michael believes that speculation is a key driver of interest and innovation in the space. He argues that the speculative nature of crypto is what makes it unique and exciting.

"The speculation is what brings people here. You know what I mean? And I think that's, I think that's what like kind of gets demonized in a bear market because people lose money off of the speculation so much. But in a bear market, it's, or in a bull market, it's praised, you know, people love the speculation in a bull market," Michael explained.

This perspective challenges the notion that speculation is inherently negative. Instead, it suggests that speculation plays a crucial role in driving interest, innovation, and adoption in the crypto space.

Learning from Market Cycles

Michael shared his personal experiences navigating the ups and downs of crypto market cycles. He emphasized the importance of learning from both successes and failures, and how these experiences can make one a stronger and more resilient trader.

"I lost a good portion of my money, like a large, large portion of my money in the bear market. But what's different for me now from the last bear market is now I know that there's a potential to do it. I've done it before. I could make a lot of money from almost nothing before. And so now I know that I have the capacity to do it 10 times the next bull market or 20 times the next bull market," Michael shared.

This honest reflection on the volatility of crypto markets provides valuable insights for both newcomers and experienced traders. It underscores the importance of perseverance and continuous learning in the face of market fluctuations.

The Evolving NFT Landscape

The conversation then shifted to the current state of the NFT market. Michael noted that while the market is not as active as it was during the last bull run, there's still significant activity and innovation happening in the space.

"It's in a very deep, low-level period, and I think that's mostly because they were over hyper-inflated attention-wise and financially in the last bull run, and you could sell a monkey picture for 300k. I think the market's just recalibrating in general, trying to figure out what the actual value of these things are and how do you actually define the value of them," Michael explained.

This period of recalibration, according to Michael, is leading to a redefinition of value in the NFT space. Projects are now focusing more on building real products and utility, rather than relying solely on speculation.

The Importance of Community in NFTs

Michael emphasized that community remains the core value proposition of NFTs. He argues that the true benefit of owning an NFT is being integrated into a group of like-minded individuals.

"The benefit that comes from buying an NFT is being integrated with a group of people that have a similar mindset to you. It's much more abstract than saying, oh, I'm going to get a game out of this, or I'm going to be able to participate in this or participate in that," Michael stated.

This perspective highlights the social and community-building aspects of NFTs, suggesting that their value extends beyond just the digital asset itself.

Evaluating NFT Projects

When it comes to evaluating NFT projects, Michael looks for strong communities and capable founders. He values founders who can pivot and adapt when their initial ideas don't work out.

"I look for founders that are like constantly building because a founder that realizes that his first iteration isn't going to be perfect and is willing to pivot is one of the strongest, strongest qualities that you can ever have, especially in a market that's constantly pivoting," Michael explained.

This approach to project evaluation emphasizes the importance of adaptability and resilience in the fast-paced world of crypto and NFTs.

The Role of Emotions in Trading

Contrary to the common advice to "turn off emotions" when trading, Michael believes in being hypersensitive to emotions. He argues that this sensitivity allows traders to intuitively sense market movements and make better decisions.

"I actually think you have to be hypersensitive to your emotions. It doesn't mean that you allow your emotions to fluctuate your decision making to a great degree, but it means that you have the ability to feel into the ecosystem that you're around that's around you and you have the ability to like kind of like intuitively sense what's happening and what's moving," Michael explained.

This unique perspective on emotional intelligence in trading provides a fresh take on decision-making in the volatile crypto markets.

The Spiritual Side of Crypto Trading

Michael also touched on the spiritual aspects of crypto trading. He emphasized the importance of being in touch with one's emotions and intuitions when making trading decisions.

"If you can start to kind of feel into the actual things that are happening, you can almost, it's very spiritual, but fuck it, like you can feel into the group mentality you can feel into when there's excitement, when there's fear, you can feel into these things and if you can stay stable enough in it, which is still a practice for me, then you can make very, very, very good decisions and feel very good about those decisions," Michael shared.

This approach to trading, which combines analytical thinking with intuition and emotional awareness, offers a holistic perspective on navigating the crypto markets.

The Future of Crypto and NFTs

While the conversation didn't explicitly predict the future of crypto and NFTs, Michael's insights suggest a future where these technologies continue to evolve and integrate more deeply with various aspects of our lives. From revolutionizing the music industry to creating new forms of community and social interaction, crypto and NFTs seem poised to play an increasingly important role in shaping our digital experiences.

The emphasis on community, adaptability, and emotional intelligence in navigating these spaces suggests that successful participation in the crypto and NFT ecosystems will require more than just technical knowledge. It will also demand social skills, intuition, and the ability to ride the waves of rapid change and innovation.

Conclusion

This wide-ranging conversation with Michael (@fxnction) provided valuable insights into the current state and future potential of the crypto and NFT spaces. From the importance of community and social dynamics to the role of emotions and intuition in trading, the discussion highlighted the multifaceted nature of these emerging technologies.

As the crypto and NFT landscapes continue to evolve, Michael's perspectives offer a roadmap for navigating these complex and exciting spaces. Whether you're a seasoned trader or a curious newcomer, there's much to learn from his experiences and insights.

The future of crypto and NFTs remains uncertain, but one thing is clear: these technologies are not just about digital assets or speculative investments. They're about creating new forms of community, revolutionizing industries, and potentially changing the way we interact with digital content and with each other. As we move forward, keeping an open mind and staying attuned to both the technical and social aspects of these spaces will be crucial for success.

Facts + Figures

• Michael, known as @fxnction on Twitter, has over 125,000 followers
• Michael started working full-time in crypto at the end of 2017
• Michael's first crypto persona was "Shell Nye" with a Bill Nye-inspired Bitcoin profile picture
• Michael took a break from crypto at the end of 2020 to focus on music
• The AI bot "Jim, Rose Tim Jim" gets 20 million impressions daily on Twitter
• Michael bought about 55 D gods NFTs between 3 and 10 sol
• Harry Potter Sonic Obama 10 he new coin went from a $5-10 million market cap to $50 million
• Michael lost over $500,000 in two hacks during the bear market
• The US dollar has been in existence for about 101 years, longer than most currencies in history
• Michael turned a couple thousand dollars into a couple million during the last bull run
• D gods NFTs went from being worth 50-100 dollars six months after mint to 10-15 thousand dollars currently

Questions Answered

What is Michael's background in crypto?

Michael started working full-time in crypto at the end of 2017. He initially gained popularity on Twitter under the pseudonym "Shell Nye," with a Bitcoin-themed profile picture. After taking a break in 2020 to focus on music, he returned during the NFT boom and created the @fxnction account, which quickly gained over 125,000 followers due to his humorous content and successful trades.

How does Michael view the current state of the crypto market?

Michael feels optimistic about the current state of the crypto market. He cites the recent positive news surrounding XRP and the overall market bounce as bullish indicators. He's excited about participating in new ecosystems like ordinals and sees the market shifting in a positive direction not only for Solana but for the broader crypto ecosystem as well.

What potential does Michael see for crypto in the music industry?

Michael sees significant potential for crypto to revolutionize the music industry. He believes crypto can transform ownership of music, royalty distributions, and create innovative ways to experience music. He mentioned an interactive music video tool that allows viewers to collect NFTs or tokens while experiencing the video, demonstrating how crypto can create more immersive and interactive experiences in the music industry.

How does Michael view the role of memes and speculation in crypto?

Michael believes that memes and speculation play crucial roles in the crypto ecosystem. He argues that memes and humor make crypto interesting and accessible to newcomers, who may not understand or care about technical aspects like transactions per second or blockchain interoperability. Regarding speculation, Michael sees it as a key driver of interest and innovation in the space, arguing that it's what brings many people to crypto in the first place.

What does Michael look for when evaluating NFT projects?

When evaluating NFT projects, Michael primarily looks for strong communities and capable founders. He values communities that are passionate and engaged, whether they're already established or have the potential to form. For founders, he looks for those who can pivot and adapt when their initial ideas don't work out. He believes that the ability to constantly build and adjust strategies is crucial in the ever-changing crypto market.

How does Michael approach emotions in crypto trading?

Contrary to common advice, Michael believes in being hypersensitive to emotions when trading. He argues that this sensitivity allows traders to intuitively sense market movements and make better decisions. He emphasizes the importance of feeling into the ecosystem, sensing excitement or fear, and staying stable enough to make good decisions based on these intuitions. This approach combines analytical thinking with emotional awareness for a more holistic trading strategy.

What lessons has Michael learned from his experiences in the crypto market?

Michael has learned valuable lessons about personal responsibility and resilience from his experiences in the crypto market. He lost a significant amount of money during the bear market, including over $500,000 in two hacks. However, these experiences taught him to be more diligent, aware, and strategic with his funds. He now sees these challenges as part of the learning process in crypto, teaching participants how to become more financially responsible and aware of the realities of money management.

How does Michael view the current state of the NFT market?

Michael sees the current NFT market as being in a period of recalibration. After the hype and inflated prices of the last bull run, he believes the market is now trying to figure out the actual value of NFTs and how to define that value. This period is leading to a redefinition of value in the NFT space, with projects focusing more on building real products and utility rather than relying solely on speculation. Despite the lower activity compared to the peak, Michael still sees significant innovation happening in the space.

What role does community play in NFTs according to Michael?

Michael emphasizes that community is the core value proposition of NFTs. He argues that the true benefit of owning an NFT is being integrated into a group of like-minded individuals. This perspective highlights the social and community-building aspects of NFTs, suggesting that their value extends beyond just the digital asset itself. Michael believes that this community aspect is what makes NFTs unique and valuable, providing a sense of belonging and shared experience that goes beyond financial speculation.