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What is Blue Chip NFT? – decrypt

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Short:

  • Blue chip NFTs are projects that are expected to be stable in terms of value and profitable over the long term.
  • Blue chip NFTs have many characteristics in common: a relatively high reserve price, brand strength, celebrity endorsement, project team involvement, and practical utility.
  • Blue chip NFTs are Bored Ape Yacht Club, Mutant Ape Yacht Club, Crypto Punk and ENS: Ethereum Name Service.

Before looking at what a blue chip NFT is, we need to look at what NFTs are and how they are valued.

Non-fungible tokens, NFTs, are cryptographically unique tokens linked to digital and physical assets that prove ownership, authenticity, or membership in a group. In games, NFTs allow players to actually purchase unique digital assets they own, such as pet monsters or starships, and they are free to trade or sell those NFTs as they see fit.

In October 2022, the global NFT market saw more than $333 million in sales, according to data from NFT tracking site CryptoSlam. Another popular site for tracking data on NFTs, DapRadar tracks blue chip NFTs and the wider NFT and decentralized application economy.

What is Blue Chip NFT?

In traditional finance, a blue chip is a nationally recognized, reputable and financially sound company. According to Investopedia, blue-chip companies are known for weathering downturns and operating profitably in the face of adverse economic conditions.

Blue-chip stocks are considered relatively safe investments with a proven track record of success and steady growth. While blue chips are reliably stable, they are unlikely to generate the same high returns as potentially riskier investments. This also applies to blue chip NFTs, normal to medium NFTs.

cryptopunks

Considered one of the first NFT collectibles, Cryptopunks was created by development studio Larva Labs. Cryptopunks has flagged 10,000 images as NFTs on the Ethereum blockchain. If you own a Cryptopunks NFT, you are the sole owner of a unique pixel avatar. Cryptopunks are the OG Ethereum NFTs, created in 2017 – before anyone outside of crypto die-hards knew or cared about rare digital collectibles. Believe it or not, Cryptopunks was released for free in 2017. Ethereum’s ERC-721 non-fungible token standard wasn’t even a thing back then, and the two-man team at Laravel Labs released them as an experiment. Ethereum wallet owners stole 9,000 cryptocurrencies released to the public, while Larva Labs took the rest.

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NFT volumes grew slowly over the next three years, but in late 2020 and especially early 2021, demand for these seemingly rare digital collectibles skyrocketed. Secondary market value for Cryptopunks shot through the roof, leading to multi-million dollar NFT sales, auctions at Christie’s and Sotheby’s, and the use of Cryptopunks’ assets as Twitter profile pictures.

But while CryptoPunks was one of the first NFT collectibles, none is bigger than the bored app Yacht Club.

did you know

The most expensive crypto to date sold at a Sotheby’s auction in June 2021 went to DraftKings’ largest shareholder Shalom Mackenzie for $11.8 million ETH.

Bor Ap yacht club

Developed by Yuga Labs, Bored App Yacht Club is a collection of 10,000 profile pictures formed as NFTs on the Ethereum blockchain. Bored Ape Collector’s illustration of a nostalgic-looking monkey with randomly generated traits and accessories. No two photos are exactly the same.

Purchasing the Bored Ape Yacht Club NFT grants access to the Titanic “Club” and membership benefits. In January 2022, Bored Ape NFTs generated more than $750 million in trading volume, including a later edition of data per CryptoSlam. Bored Apps became the Twitter NFT avatar of choice for athletes, musicians and others.

did you know

As of publication, record sales for a single Bored App NFT in September 2021 are 740 ETH, or just over $2.9 million. It was bought by the developer of the upcoming Ethereum game, The Sandbox.

drawing

Launching in October 2021, Doodle is a series of NFTs featuring the art of Burnt Toast. Doodles come in a wonderful array of colors, features and sizes, with a collection size of 10,000. Each Doodle allows the owner to vote on experiences and activities paid for by the Doodles Community Treasury.

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In September, Doodles revealed that musician and producer Pharrell Williams had joined Doodles as Chief Brand Officer and planned to serve as executive producer for an album of music inspired by the project. In the same month, Doodles NFT sales increased 1,200% and were valued at $704 million at the time.

azuki

Launched in January, Azuki became one of the most popular NFT projects to be released in 2022 in terms of total trading volume and has just reached another milestone. The Ethereum-based profile picture project launched in January and will cross $1 million in initial secondary sales in March 2022.

Azuki #9605 sold for 420.69 ETH or $1.42 million at the time, more than double the previous record sale for the project by Azuki #4666 on February 13 for 204 ETH, about $586,000 at the time.

Anime-inspired Ethereum collectibles will be one of the top NFT projects in 2022.

twin flames

Launched in February 2021, Twin Flames was intended to pay tribute to artist Justin Aversano’s twin brother, who died in utero. Twin Flames is a collection of 100 photos, each of a different twin. The photos, taken around the world between 2017 and 2018, show a wide variety of subjects in choice of location and clothing, all united by the shared characteristic of being twins.

Minted in February as an Ethereum-based NFT, Twin Flames is coveted by collectors. According to OpenSea, Snoop Dogg and Gary Vaynerchuk own Twin Flames NFTs, and the Portrait collection has generated trading volume worth approximately $13 million by October 2021. That year, one NFT in the collection sold for 506 ETH, or about $1.9 million.

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cryptocurrencies

Created by Dapper Labs, CryptoKitties are non-fungible tokens, originally built on the Ethereum blockchain using the ERC721 token standard. Before the existence of ERC721, tokens were fungible or interchangeable on the blockchain; Any bitcoin or ethereum token is the same as any other. ERC721 allowed for the creation of unique, non-fungible tokens.

Each cryptocurrency is unique and its digital genome is stored in a smart contract. The immutable genotype stored in the smart contract determines the visual appearance or phenotype. Any two cryptic characters can be bred using a genetic algorithm, and an offspring with its unique traits (or “catatraits”) is produced.

The popularity of the cryptocurrency quickly became a problem for the Ethereum network, which could only process a limited number of transactions at a time, leading to queues. Cryptocurrency breeding became so popular that other companies operating on the platform were unable to quickly verify their transactions.

In May 2020, CryptoKitties announced that it was switching to a dedicated blockchain, Flow.

did you know

The most expensive cryptocurrency, Genesis, was once valued at $114,481.59. That’s more than the most expensive “real” cat on record, which cost just $41,435.

Like stocks, blue-chip NFTs come and go. The once-invincible Bore Ape Yacht Club saw its value plummet when the crypto bear market kicked off earlier this year. In January, popular singer Justin Bieber bought a monkey for $1.3 million; As of November 2022, the value of JPEG is $69,000.

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Source: news.google.com

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