What are Blue Chip NFTs?
Blue chip NFTs are long-term investments that are anticipated to be stable in terms of value and profitablity. Blue chip NFTs share a number of traits in common. These include a relatively high floor price, brand power, celebrity sponsorships, team dedication, and practical applicability. Blue-chip NFTs include ENS: Ethereum Name Service, Crypto Punks, Mutant Ape Yacht Club, and Bored Ape Yacht Club.
What are Blue Chip NFTs?
In conventional finance, a blue chip company is one that is well-known, firmly established, and financially stable. According to Investopedia, blue-chip businesses are renowned for withstanding downturns and continuing to make a profit despite unfavorable economic conditions.
Blue-chip stocks are regarded as reasonably secure investments with a track record of accomplishment and steady growth. Blue chips are consistently reliable, although they don’t typically produce as high of returns as possibly riskier assets. This also applies to blue chip NFTs, which are typical to ordinary NFTs.
Larva Labs, a development company, produced CryptoPunks, one of the earliest NFT collections. 10,000 photos have been tokenized as NFTs for CryptoPunks on the Ethereum blockchain. If you possess a CryptoPunks NFT, you are the only owner of a unique pixel avatar. The original Ethereum NFTs, or CryptoPunks, were developed in 2017, long before the general public was aware of or interested in rare digital collectibles. Unbelievably, CryptoPunks was made available for free back in 2017. The two-person Larva Labs team launched them as an experiment at a time when the ERC-721 non-fungible token standard for Ethereum wasn’t even a thing. The 9,000 CryptoPunks made available to the general public were quickly snapped up by Ethereum wallet users, while Larva Labs kept the rest.
The value of CryptoPunks on the secondary market skyrocketed NFT. This resulted in sales worth millions of dollars, auctions at Christie’s and Sotheby’s, and an abundance of CryptoPunks being used as Twitter profile images.
Although one of the first NFT collections was CryptoPunks, Bored Ape Yacht Club is the largest.
Bored Ape Yacht Club
The Bored Ape Yacht Club, created by Yuga Labs, is a collection of 10,000 profile photographs that were created as NFTs and placed on the Ethereum blockchain. Collectors of the Bored Ape have a drawing of an uninterested-appearing gorilla with arbitrary characteristics and accessories. There are variations among each image.
Purchasing a Bored Ape Yacht Club NFT gives you entry to the fictitious “club,” and membership has advantages. According to data from CryptoSlam, Bored Ape NFTs generated more over $750 million in trade volume by January 2022, including the following variant sets. Athletes, musicians, and other people started choosing Bored Apes as their Twitter NFT avatar.
Doodles is a collection of NFTs that was released in October 2021 and features artwork by Burnt Toast. They come in a bright variety of hues, characteristics, and sizes, and there are 10,000 of them in the collection. Voting for experiences and activations funded by the Doodles Community Treasury is possible for each Doodle.
Pharrell Williams, joined Doodles as Chief Brand Officer in September. The company announced that he would be serving as executive producer for a music album that would be inspired by the project. Doodles NFT sales increased by 1,200% in the same month and were worth $704 million at the time.
Azuki, which was introduced in January and just reached a new milestone, quickly rose to become one of the most popular NFT initiatives introduced in 2022 in terms of overall trading volume. The January launch of the Ethereum-based profile image project resulted in its first secondary sale reaching $1 million by March 2022.
Azuki #9605 broke the project’s previous record sale, which was Azuki #4666 on February 13 for 204 ETH, or about $586,000 at the time, selling for 420.69 ETH, or $1.42 million at the time.
In 2022, the Ethereum collection with an anime theme rose to the top of the NFT initiatives.
Twin Flames, which debuted in February 2021, was created as an homage to Justin Aversano’s twin sibling, who died while still in utero. The 100-photo collection Twin Flames features distinct sets of twins in each image. The images, which were captured all around the world between 2017 and 2018, reveal a diverse range of subjects in the settings and attire of their choice. Yet, they are all bound together by the shared characteristic of being twins.
Twin Flames are sought-after by collectors and were first minted as Ethereum-based NFTs in February. These NFTs are also owned by Snoop Dogg and Gary Vaynerchuk. By October 2021, according to OpenSea, the photo collection had generated approximately $13 million in trade volume. One NFT from the collection was also sold for 506 ETH ($1.9 million) in that year.
CryptoKitties are non-fungible tokens developed by Dapper Labs that were initially constructed on the Ethereum network using the ERC721 token standard. Tokens on blockchains were formerly fungible or interchangeable; every Bitcoin or Ethereum token is the same as any other. This changed with the introduction of ERC721. ERC721 made it possible to create one-of-a-kind, non-fungible tokens.
The digital genome of each CryptoKitty is kept in a smart contract, thus making each one unique. Its physical characteristics, or phenotype, are determined by the immutable genotype that is contained in the smart contract. Thus, using a genetic algorithm, any two CryptoKitties can mate, and the resultant child will have the parents’ distinctive characteristics (or “cattributes”).
The Ethereum network struggled as a result of CryptoKitties’ fast rise in popularity. It could only handle a certain number of transactions at once. As a result, a queue formed. Breeding CryptoKitties became so well-liked that it made it difficult for other companies using the platform to quickly validate their transactions.
CryptoKitties declared in May 2020 that it was switching to the specialized blockchain Flow.
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