Since the market boom in 2021, hundreds of NFT projects have been mined and new projects have been added every day. Only a few of these kits – often known as Blue Chip NFTs – have managed to prove themselves over a long period of time. Excellent argument illustration using Project Moonbirds.
The Moon birds The number one topic of conversation has been in the NFT space for the past week. In the 10 days since it was minted, the pool has seen a total trading volume of over 150,000 ETH, equivalent to about $475 million, surpassing any other NFT project. Aside from the reasons for the massive interest, Moonbirds’ success has sparked a new debate about the state of blue-chip NFTs.
What are the leading stocks in traditional finance?
Blue-chip stocks are investments that are considered to be safe and long-term investments that generate steady returns on the invested capital. Usually, excellent companies have been around for many years to decades, are well-capitalized and have a proven track record; Even in difficult times for the markets. For example, companies such as Coca-Cola, IBM, Disney, and General Motors are seen as “leaders” in traditional finance.
Investing in blue chips is less risky than speculative bets such as penny stocks or early stage companies. The original term has its origin in the classic 3 suit poker chip deck, where blue chips have the highest value. In the 1920s, when the term was first used, stocks over $200 were the blue-chip stocks of the day.
Blue chip NFTs
In terms of NFTs, blue chips denote groups that have skyrocketed in value — market observers believe these digital assets will maintain their high value for a long time to come. Aspects like return on equity (ROA), debt ratio (equity-to-debt ratio) or other metrics are not really relevant to NFT projects. Factors that determine blue chip status include overall brand awareness and community engagement. In addition, it is the use cases, benefits, as well as prominent advocates that determine the minimum price (minimum) and sales volume.
In traditional finance, blue chips are all about longevity, something NFT can’t do yet. cryptopunks It is one of the first NFT pools and has only been around since 2017. The most successful NFT project so far, Monkey Yacht Club Boredom (BAYC), has been around since April 2021. With hundreds of projects hitting the market since the NFT explosion in spring 2021 and counting, it’s impossible to keep track of them all.
In general, the term blue chip NFT means that the project will hold a high value in the future. In other words, the group can behave like a traditional preferred stock in the future and persist through multiple market cycles. There is no “objective” definition of the term and in many cases market participants simply describe their pet projects as excellent.
Moonbirds: The next blue chip?
Similar to the Bored Ape Yacht Club, Moonbirds are said to bring other benefits in addition to the classic “profile photo” on social media. Holding an NFT unlocks membership in a private club that expands over time. For example, users get access to an NFT-protected Discord server where information is shared about upcoming NFT events and other events and developments in the field.
The pool is minted at 2.5 ETH apiece, and the smart contract includes 5% royalties on any secondary sale credited to the creators. According to the Official site Owners of NFTs also have full intellectual property rights over them. The minimum price (floor) for Moonbird is currently 32 Ether, which is roughly equivalent to $100,000 USD. Some users are convinced that the large volumes and prices already speak for the classification as a blue-chip NFT. However, the kit is less than two weeks old and the hype surrounding the cute birds can disappear as quickly as they appear.