By discovering the broad field of NFTs, you may come across the word “blue chip” reasonably frequently. Moreover, if you are an NFT collector or investor, you should understand what a blue chip NFT is and why they are so valuable. However, this may confuse you if you are a beginner in NFTs. Thus, this article will clarify what a blue chip NFT is and why they are significant. It will be beneficial if you plan to invest in NFTs in the long run.
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Understanding Blue Chip NFT
Genuinely, the word “blue chip NFT” comes from physical finance. The term “blue chip” may be traced back to poker. The chips in three-color poker sets are commonly red, green, and blue. This blue chip has the most value throughout the game compared to other colors.
As for blue chips, stock, bonds, or other assets in the real world it is one in which you can invest for the long run. This is because you will continue receiving consistent investment returns for many years. Similarly, blue chip NFT refers to a non-fungible token in which you may invest with confidence. This is because the attractiveness or value of the NFT will not soon disappear among blockchain users. Instead, it will only get worse with time.
Blue chip NFTs are those that have the potential to provide long-term returns on investment. If someone invests in these NFT projects, they will most likely earn considerably if they sell them in the future.
Is There Anything Special About a Blue Chip NFT Project?
Several characteristics and measures may be used to assess if an NFT project is among the most significant blue-chip NFT projects. The following characteristics are examples.
The Public Image of NFT Creators
Blue Chip NFT could well be identified to a large part by assessing the developer’s reputation. It helps to boost the team’s credibility if the developer has a track record of past job experience or collaboration with prominent corporations such as Microsoft. The improved trustworthiness of the developer team defines the NFT project’s followership to a large extent.
The Blue Chip NFTs’ Identification
The brand’s identity is a significant indicator that may be utilized to identify the blue-chip NFT. Establishing a project early on in every business helps define the brand’s identity before competition becomes fierce. As a result, the early establishment acts as leverage to obtain the necessary exposure that generates vast followership. For example, if an NFT initiative launches early in the NFT area, one characteristic that determines its identity in the developing business is its inventive drive. It contributes to the project’s reputation as a leader.
The NFT Project’s Utility
A well-planned NFT project provides a clear roadmap that defines the stages of the NFT project. As a result, this is one crucial criterion that a project must pass to be recognized as a blue-chip NFT. The projected utility is an essential idea that should be incorporated into the roadmap. It provides investors with a straightforward and valuable reward. If an NFT project is clear about what benefit it intends to offer and how it wants to reward holders, it has passed one of the three conditions that classify it as a blue chip NFT project.
Examples of Blue Chip NFT Projects
Crypto Punk
The NFT project CryptoPunks was among the first to be a success. CryptoPunks was released in 2017 by the two-person development team Larva Labs. Not only does it have one of the largest collections of NFT characters (10,000), but it also happens to be one of the most significant collections of its kind. Christie’s and Sotheby’s have both auctioned off some of these NFTs.
Many of the CryptoPunks in this NFT set can be purchased for six figures, making it another expensive collection. Compared to other blue chips, CryptoPunks NFTs have a more extended history of success. They have been around longer than most collections, and their sales volume consistently places them in the top spots.
Bored Ape Yacht Club
Those who purchase a membership to the Bored Ape Yacht Club, a virtual zoo housing 10,000 anthropomorphic apes, gain access to a private social networking platform. They sold in April 2021 for 0.08 ETH (about $190) each. Over a billion dollars were made in sales within a year, they were a hit with A-listers, and individual pieces routinely fetched hundreds of thousands of dollars.
Though arguably the most popular NFT brand, Bored Ape NFTs are priced out of the reach of most investors. Yuga Labs, the company behind Bored Ape Yacht Club, aims to create a media empire with its NFTs and has raised $450 million in funding at a $4 billion valuation. Other popular NFT collections, such as Mutant Ape Yacht Club, have also been released.
Doodles
Doodle is a Burnt Toast creation that features 10,000 NFTs with various recognizable visual traits. Doodle collects unusual heads, elaborate costumes, and the full range of colors available to an artist. And just like the Space Doodle, Doodle offers its collectors something genuinely unique. Doodle bank is a collection community bank with nearly $5 million in assets.
To conclude, the term “Blue Chip NFTs” is likely to appear more than once when examining the dynamic and multifaceted world of NFTs. That is comprehensible, considering that some development teams are attempting to sell their NFT project as a reliable investment vehicle guaranteed to generate cash after a long-term investment. However, the caution remains that NFT fans and prospective investors should investigate NFT initiatives carefully to ensure they are not a rug-pull fraud.
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Sources: Cyberscrilla