A Blue Chip NFT: What Is It?
Fundamentals of NFTs
Before discussing blue-chip NFTs, we need to define and value NFTs.
Non-fungible tokens, also known as NFTs, are digital or physical tokens that are cryptographically unique. They are associated with digital and physical content that serves as proof of ownership, legitimacy, or group membership. In games, NFTs let users own unique digital assets, such as pet monsters or starships, and trade or sell them.
CryptoSlam reported $333 million in global NFT sales in October 2022. DappRadar, like CoinMarketCap, is a prominent platform for monitoring the NFT and decentralized application economies generally, including Blue Chip NFTs.
What Is a Blue Chip NFT?
Blue chip NFTs are initiatives that are successful and have the potential to retain their value over time.
Blue chips are well-known, financially stable companies in traditional finance. Blue-chip enterprises are capable of maintaining profitability even during economic downturns.
Blue-chip stocks have a history of success and steady growth. Blue chips are safe, but they usually yield low profits.
Why Is It Important To Invest In Blue Chip NFTs?
The significance of blue chip NFTs is that they offer the opportunity to invest in something outstanding and get a positive return. If supported, the blue-chip brand will keep providing quality goods and services worldwide.
Most NFTs will never become blue chips, but the companies that continue to execute, offer value to their consumers, and build their strong reputation will be established for a long time as the blue-chip brand.
In general, a community would be more receptive to a non-fungible token (NFT) with greater utility for its owner than just offering a product with no value.
Several high-profile NFT projects provide real-world value. Some NFT investors receive goods, events, one-on-one sessions, and other resources to help users.
Larva Labs, a software development company, developed CryptoPunks, one of the best-known NFT collections. On the Ethereum blockchain, CryptoPunks are tokenized versions of 10,000 digital images. If you have a CryptoPunks NFT, your pixel avatar is unique. CryptoPunks are the first Ethereum non-fungible tokens (NFTs). They were created in 2017, long before anyone but crypto enthusiasts knew about or cared about rare digital collectibles. CryptoPunks was made available for free in 2017. The two-person crew at Larva Labs launched them as an experiment. At the time, Ethereum’s ERC-721 standard for non-fungible tokens did not exist. The 9,000 CryptoPunks available to the public were quickly purchased by those with Ethereum wallets, while Larva Labs kept the rest for them.
The volume of NFT transactions steadily increased over the subsequent three years. Nevertheless, the demand for these verifiably rare digital collectibles exploded around the end of 2020, especially at the beginning of 2021. CryptoPunks’ secondary market value skyrocketed, resulting in multi-million-dollar NFT sales, Christie’s and Sotheby’s auctions, and many Twitter profile pictures.
Bored Ape Yacht Club is the largest NFT collection, but CryptoPunks was the first.
2. Bored Ape Yacht Club
Yuga Labs’ Bored Ape Yacht Club features 10,000 Ethereum NFT profile images. Bored Ape collectors have an illustration of an ape with randomly generated features and accessories. No two pictures are identical.
Purchasing a Bored Ape Yacht Club Non-Fungible Token grants membership to the same “club” and its rewards. According to CryptoSlam, Bored Ape NFTs traded over $750 million in January 2022, including variant sets. Bored Apes became the preferred Twitter NFT avatar of athletes, musicians, and others.
Burnt Toast’s Doodles NFTs debuted in October 2021. The 10,000-piece collection of doodles features various colors, characteristics, and sizes. Doodle users can vote on Community Treasury-funded experiences and activations.
In September, Doodles announced that Pharrell Williams had joined as Chief Brand Officer and would executive produce a project-inspired record. Doodles NFT sales increased by 1,200% in the same month, increasing their worth to $704 million.
Azuki, which debuted in January, has reached a new trading volume milestone, making it one of the most popular NFT projects produced in 2022. The Ethereum-based profile picture initiative launched in January and earned $1 million in secondary sales by March 2022.
Azuki #9605 decided to sell for 420.69 ETH, or $1.42 million, more than double the project’s previous record selling of Azuki #4666 on February 13 for 204 ETH, or $586,000.
In 2022, the Ethereum collection inspired by anime became one of the leading NFT projects.
5. Twin Flames
Twin Flames, released in February 2021, was developed as a tribute to the unborn twin brother of artist Justin Aversano. Twin Flames features 100 photographs of various twins. The photos were taken all over the world between 2017 and 2018. They show a variety of individuals in the locations and clothes of their choice, but they all have one thing in simillar: they are twins.
Twin Flames, issued in February as Ethereum-based NFTs, are highly wanted by collectors. According to OpenSea, by October 2021, trade volume for Twin Flames NFTs, whose owners include Snoop Dogg & Gary Vaynerchuk, will have reached approximately $13 million. During that year, one of the NFTs in the collection was sold for a total of 506 ETH, equivalent to over $1.9 million.
CryptoKitties, introduced by Dapper Labs, are non-fungible ERC721 tokens on the Ethereum network. Before the creation of ERC721, tokens using blockchains were fungible; each Bitcoin or Ethereum token is equivalent to any other. ERC721 allows the introduction of non-fungible, non-unique tokens.
Each CryptoKitty has a distinct smart contract-stored digital genome. The smart contract’s genotype defines its phenotype. Using a genetic algorithm, CryptoKitties of any two different types can be bred to create a new type of CryptoKitties with the characteristics of both parents (or “cattributes”).
The sudden surge in interest in CryptoKitties overwhelmed the Ethereum network, which has a limited capacity to handle the influx of new transactions in real-time. Breeding CryptoKitties grew so popular that it hampered the ability of other businesses on the site to quickly validate their transactions.
In May 2020, CryptoKitties announced their migration to the Flow blockchain.
Similar to equities, Blue Chip ETFs come and go. This year, a crypto bear market wiped out many people’s savings, including those who belonged to the once-unstoppable Bored Ape Yacht club. The famous artist Justin Bieber spent $1.3 million buying an ape in January; the JPEG of that purchase is now only worth $69,000 as of November 2022.
People want to make investments, but they want to know that those investments will bring them a return on their money. Before dealing in an NFT, ensure that the project possesses all of the features of a Blue Chip venture, and if it does not, do not invest.
It takes work to find Blue Chip NFTs. Famous blue chips are too expensive for some. Therefore, if you are looking for a Blue Chip project to invest in, you should look for a business with the potential to reach Blue Chip status.