What are Blue Chip NFT's?
The NFT world moves extremely quick thanks to new releases, airdrops, or new partnerships.
Today we will talk about the similarities of NFT's to blue chip stocks that are still leading today.
Investing in NFTs are a new concept, it really shows when projects floor price goes to the moon or it drops like a rock.
Sales volumes on opening day NFT's can range significantly. It really depends on the hype surrounding the project.
Although projects come and go, few will last. These are called Blue Chip NFTs!
CryptoPunks
This was one of the OG NFTs on the Ethereum blockchain. It became so popular that Jay-Z purchased one and made it his profile picture on Twitter!
The reason I have put it in the NFT Blue Chip list is due to the transfer of ownership to Yuga Labs. Recently Yuga Labs purchased the rights to this NFT project from Larva Labs the original creators of Cryptopunks.
When they purchased the rights to this project the gave the owners of the NFTs 100% IP ownership & included a 0% royalty!
This is BIG NEWS!
The reason? Almost all projects include a royalty fee ranging from 2.5% to 10%, this is NOT including the fees from NFT marketplaces.
These fee's are somewhat necessary, however, you could argue that to truly decentralize a project, you need to remove the royalty.
Related: NFT's on Reddit!
In my eyes, Cryptopunks is a clear example of the term blue chip. It may be expensive to join the community, but you are joining a group of people who've been in Crypto since the beginning.
Bored Ape Yacht Club
This NFT project was the first blue chip NFT and most successful NFT mint ever.
Yuga Labs, the creator of Bored Ape Yacht Club and co-creator of Ape coin, have provided continuous value for their NFT holders that have provided financial freedom to many people!
Here's a picture of a user explaining all the gifts received from holding their ape.
As you can see in the tweet, the original mint was for .08 Ethereum, although at the time of minting Ethereum was valued as high as it is now.
Aside from the numerous gift's they gave to holder's, the best gift BAYC holders received was the MAYC serum (Mutant Ape Yacht Club).
A serum is a potion you can use on an existing Bored Ape Yacht Club NFT to create an additional NFT called Mutant Ape Yacht Club. These serums very in quality with some going for more than $1 Million dollars+ to create an extremely rare NFT!
Mutant Ape Yacht Club
Do they look weird? Yes, but they are now apart of the NFT blue chips due to the overwhelming success of this additional collection.
When it originally became available for mint, I personally minted one for 2.7 Ethereum, but immediately after the minting process ended, it had a floor price went to 8 ETH+!
Depending on rarity they were going for 12+ ETH! This truly opened many peoples eyes including mine to the opportunity NFTs have offered.
As of the this article is written the floor price for this collection, the floor price is currently going for 25 ETH.
These collections will hold value as long as Yuga continues to build their own version of the metaverse.
Azuki
This 10,000 item collection project became very popular thanks to their fantastic art. Many people that are heavily involved in Crypto purchased these NFTs and have used them as their PFP (Profile Picture) on Twitter and elsewhere.
This team is filled with talented individuals who are also trying to attain permanent blue chip status by becoming a decentralized brand of the future.
For a project to go from 2.5 ETH floor to a floor of 25 ETH, while also keeping holders happy, made it worthy of blue chip status.
The team has also released an additional collection to allow people help join the Azuki brand, similar to how Bored Ape Yacht Club created their Mutant collection.
One thing's for sure, I am very excited to see what this team will produce in the future!
Considerations for Future Blue Chips
The NFT collections mentioned above are the one's that have proved value and have holders that are dedicated to continue holding. It's very difficult to become a blue chip company if a project has yet to develop some real utility or provide no roadmap.
The profile picture hype may have ended, but the NFT space will continue to mature and build real utility similar to what Bored Ape Yacht club is building.
Here are some project's you may want to look at and do your own research on:
Moonbirds: This project was developed by Kevin Rose a well known investor in NFTs and crypto. Sure, it's a popular NFT because many people got in at mint which was 2.5 ETH, but the problem is the team knew about the rarity before the public did, and were able to scoop up the rare NFTs.
The project claims they will have IRL ( In Real Life) meetups, a membership to their metaverse, and other benefits. Once again, this is up for consideration. No real utility has been developed due to the project only being a month old.
Doodles:
Another profile picture collection, that gained the likes of celebrities like Steve Aoki. Doodles have some great art and have a great community.
They claim to be building their brand by creating products, experiences, and merchandise.
I haven't put it in list of blue chip NFT projects because it's still yet to be seen whether they can continue to retain the likes of NFT investors. In NFT markets its difficult to retain attention especially when new collections are released almost everyday!
Cool Cats:
This cat project really boomed in the beginning of NFT summer last year. The community grew quickly and the hype spread quickly which made the floor price of the NFT's to really moon! However, they've had a lot of negativity growing around the project which makes it unappealing to new entrants in the NFT space.
You can still see many profile pictures of Cool Cats on Twitter, but with the NFT space moving quickly and new projects being released, it will be hard to keep the floor price up.
They've been building new products and introducing staking, but NFT participants are moving elsewhere.
Final thoughts
As someone who's been in the NFT space for a while it's important to notice what moves markets and I can tell you people are moving from project to project. It's extremely difficult to recreate what Bored Ape Yacht Club created, but don't let that discourage you from being in NFTs.
The NFT world is really only 1 or 2 years old. We need to allow these projects to build and show why NFTs are here to stay.
Stay safe and WAGMI.
-M
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