As Atogail Forests aims to continually mint NFTs as we work with more landowners to plant more Forests (approx. 1 hectare each), we anticipate future sales of each set of NFTs to have the same tranche and price increase structuring as the Genesis sale.
This creates a new type of price anchoring in NFT secondary markets.
Let's take the following scenario
The first tranche of 200 NFTs at $300 USDe has sold out, however is trading on secondary markets at a $200 floor price. The second tranche of 200 mints at $350 USDe opens.
Acme Coffee co, a corporate looking to spend their environmental strategy budget on carbon reduction would like to purchase 100 NFTs at the cheapest price.
As all NFTs per Set offset the same amount of carbon, to Acme Coffee Co, it does not matter whether the NFT is bought from secondary markets or freshly minted. Acme will buy from the secondary markets until the floor price is the same as the mint price at $350 USDe, then will continue their purchases via new mints.
From the perspective of an early purchaser of Atogail Forests NFT, it creates an interesting direct dynamic between corporate/public interest and secondary market floor price.
Corporate ESG Demand
Growth of ESG policies, including green strategies, social impact, cultural protection and carbon reduction, all of which are part of Atogail Forests NFTs, has been explosive and is projected to continue as there is increased pressure on corporates to implement these initiatives. According to S&P Global: "Following the unprecedented market and policy momentum behind ESG in 2021, investors, corporate boards, and government leaders have raised expectations for progress on climate pledges in 2022." Read more here.
The demand for carbon offsets is projected to go one way... up. And fast.
"More and more companies are pledging to help stop climate change by reducing their own greenhouse-gas emissions as much as they can. Yet many businesses find they cannot fully eliminate their emissions, or even lessen them as quickly as they might like. The challenge is especially tough for organizations that aim to achieve net-zero emissions, which means removing as much greenhouse gas from the air as they put into it. For many, it will be necessary to use carbon credits to offset emissions they can’t get rid of by other means. The Taskforce on Scaling Voluntary Carbon Markets (TSVCM), sponsored by the Institute of International Finance (IIF) with knowledge support from McKinsey, estimates that demand for carbon credits could increase by a factor of 15 or more by 2030 and by a factor of up to 100 by 2050. Overall, the market for carbon credits could be worth upward of $50 billion in 2030."