How will the next million-dollar NFT be born?

When Tom Williamson and Rob Mehew first tried to create an NFT project, they chose a “unicorn”, specifically a fat unicorn. As shown in the picture below, these unicorns are chubby, unable to stand up on their four hooves, and are painted in a 16-bit chunky style. They named the project Faticors , created 10,000 unicorn NFTs, and sold them all. However, only one was sold in the end.

How will the next million-dollar NFT be born?

Above: Some of the unicorn NFT images in Faticors

So, they abandoned this project, and then collaborated with Evan Luza and artist Colin Egan to develop a different project: Cool Cats , which is a generative NFT project, and there are only 9,999 such cartoon cat NFTs in total. They have a cute appearance with blue skin and are decorated with accessories such as hats, turbans and sweaters (see the picture below). This time, when these cartoon cats went on sale, all 9,999 Cool Cats were sold out within 8 hours, allowing them to make a net profit of approximately US$200,000 in ETH .

How will the next million-dollar NFT be born?

Above: NFT images of some cartoon cats in Cool Cats

How are these cats different? Luza stated that they are “cute and cool” and that “the way we package our products makes buying them like opening a box of Pokémon cards.”

In the past few months, Cool Cats and other items popular in the field of NFT up, mainly by the CryptoPunks ( encryption punk successfully promoted) and other value NFT amazing collections, some of which CryptoPunks price of millions of dollars.

These newly launched NFT projects usually follow the model that CryptoPunks has used as early as 2017: there are only 10,000 CryptoPunks avatars in total , and all CryptoPunks are ” programmatically generated “, that is, based on a set of pre-defined components (Such as hats, beards, T-shirts, etc.) are randomly generated and the format is a portrait photo , which can be perfectly used as a personal avatar for Twitter or Discord .

How will the next million-dollar NFT be born?

Above: some of the CryptoPunks avatars

You can think of these NFT series as Pokémon’s large-scale games, but each NFT can only be captured once. This means that if you want more NFTs, or have not obtained any NFTs from the beginning, then you have to buy from people who started playing the game earlier (that is, participated in the casting of these NFTs earlier).

In the Pokémon game, the most popular pets such as Pikachu and Charizard are naturally more valuable than the seventh-generation Pokémon, such as Cutiefly. This is why in NFT series like Cool Cats, you will see that some cartoon cats are worth 3 ETH (approximately USD 10,000), while other more popular cats are as high as 15 ETH (approximately USD 49,000), but The price of all these cats is higher than the price of 0.02 ETH (approximately US$42 at the time) at the time of the initial release.

In recent months, dozens of such NFT projects have appeared, usually with a single creature theme : such as penguins, aliens and robots; lions, tigers and bears; there are also many cat-themed NFT projects. Such as Gutter Cats, MoonCats, Mad cats, Punk cats, Stoner Cats and BlazedCats.

Among them is the Bored Ape Yacht Club  (BAYC, Bored Ape Club) launched in April this year , which includes 10,000 punk-style apes NFT avatars . Some of these apes wear hats and ear studs, and some have mischievous smiles (see picture below). When the project was launched, the price of each ape was equivalent to US$186, and today the cheapest apes are selling for more than US$80,000, and several of them have sold for more than US$300,000.

How will the next million-dollar NFT be born?

Above: Several Bored Apes avatars in the BAYC project

These newly launched NFT projects are inspired by CryptoPunks and imitate its model, which makes it easy for people to have the impression that these NFT projects are an act of making money for project creators and NFT holders. , People will rush to buy these cookie-cutter JPGs, and hope to resell them in a few months or years, and get a windfall. If you go to the Discord chat group for any of these NFT projects, you may soon see a conversation about the “reserve price” of these NFTs (that is, the price of a cheap NFT in a certain NFT series).

“We are working hard to build for the long-term future”

However, almost everyone who talked about starting or buying NFTs in an interview with The Verge said that the monetary factor is only part of it, and often not even their main interest . Spencer Gordon-Sand, who works in the venture capital industry, said: “When I have a Bored Ape as an avatar, I can chat privately with any other Ape and get in touch with them. This is an easy way to enter a community . “

The real selling point of these projects should be to connect excellent works of art with the community . Bored Ape Yacht Club (BAYC) was the first project to understand this. The founders of BAYC tried to make it as easy as possible for the original buyer to obtain an ape. They designed the NFT series to provide a veritable “club” membership. Their website is built around an illustration of a diving bar and has a doodle board for members only, as long as you own an ape.

Some NFT founders believe that if the NFT project puts money first and leaves the community behind, there will be endless troubles . Gargamel, co-founder of BAYC, believes: “This will bring unsustainable growth, and temporary price spikes will eventually collapse. We are working hard to build for the long-term future.”

So far, creating a community of NFT projects has mainly meant starting a Discord group, launching a donation campaign, and announcing new features. For example, the BAYC project will launch “mutant apes”; Cool Cats is studying a model that will bring its cartoon cats into the meta universe. Carrying out gifting means that existing NFT holders can get more NFTs, thus giving them more NFTs available for sale, which will push up their reserve price, because more people will see holding these cartoon cats, The added value of apes or any other NFT !

For example, BYAC is particularly interested in what it means to become a member of the club. Gargamel said: “Your ape is like your black card. It allows you to gain NFT credibility online, and it also allows you to participate in internal pre-sales and activities, such as a party we held recently in Los Angeles.”

“Do your best to get a good return for everyone who invests money. This is very important.”

Nonetheless, the potentially lucrative return is still a big motivation for NFT buyers and project founders , and some projects are particularly aware of this. For example, Bones & Bananas is a banana-themed NFT series (see picture below) designed to support the price of Bored Apes . The project is operated by enthusiasts and holders of Bored Apes, using part of the funds raised from the 10,000 Bones & Bananas series to purchase and push up the reserve price of Bored Apes, driving market demand for Bored Apes.

How will the next million-dollar NFT be born?

Above: Several images of NFT bananas in the Bones & Bananas series

The Doge Pound  is a dog -themed NFT series with a total of 10,000 Doge Pounds. John Lemon, the co-founder of the project, said: “I treat every (Doge Pound) holder as an investor… I think you have to do your best to make everyone who invests money have a good return. This is very important .”

How will the next million-dollar NFT be born?

Above: Several NFT dog heads from The Doge Pound series

Basically, a successful NFT project turned into a thriving small business overnight . After the first sale, the person in charge of some NFT projects may have hundreds of thousands of dollars in capital (for example, The Doge Pound co-founder John Lemon said he made a net profit of 1.2 million US dollars), and every time their NFT is resold , They usually get a small share (usually around 2.5%). Therefore, next time when a rare Bored Ape is sold for 100 ETH, the person in charge of the project will get 2.5 ETH from it, which is equivalent to more than $8,000 at the current price. This is a huge incentive to continue to maintain the community and further stimulate market interest .

Gordon, co-founder of BAYC, said: “This is crazy. We are now running a multi-million dollar hedge fund with approximately 13,000 active users on Discord.”

After NFT, products, events and games followed one after another

However, the ultimate goal of many NFT project is not necessarily only be from which to make money . The creators of Bored Ape stated that they envisioned turning BAYC into a streetwear brand (they had already provided limited-release hats, T-shirts and hoodies, which were subsequently sold on eBay), and that Bored Ape might just be them The first product; the Cool Cats team envisions their cartoon cat to be the next Hello Kitty.

Luza, the co-founder of Cool Cats, envisioned this scenario: “You walk into a department store and see the Cool Cats plush toys on the shelves… When you walk to the checkout counter, you buy a Cool Cats Snickers. “

Up to now, this generative NFT model has worked, and many NFT projects have established community and monetary value within a few months of their launch. But no one knows what will happen next. CryptoPunks only began to soar in value after several years of launch. Although free gifts and second-generation NFT roles may temporarily promote these NFT projects, the new generations who create these NFTs may also dilute the exclusivity of joining these clubs.

Venture capitalist Kevin Rose recently changed his profile picture to a Cool Cat. He wrote on Twitter: “Too many new NFT projects currently use outdated scripts. I will avoid buying more than the total amount. 10,000 new NFT projects.”

However, as long as cats, robots, aliens or apes are cute enough, people may still be willing to spend a fortune to buy one.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-will-the-next-million-dollar-nft-be-born/
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