By discovering the wide field of NFTs, you may come across the word “blue chip” fairly 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, if you are a beginner in NFTs, this may confuse you. Thus, this article will clarify what a blue chip NFT is and why they are significant. It will be very useful if you plan to invest in NFTs for the long run.
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Understanding Blue Chip NFT
Genuinely, the word “blue chip NFT” comes from physical finance. The origin of the term “blue chip” may be traced back to poker. The chips in three-color poker sets are commonly red, green, and blue. When compared to other colors, this blue chip has the most worth throughout a game.
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 to receive consistent returns on your investment 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 disappear anytime soon 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 greatly if they sell them in the future.
What Makes An NFT A Blue Chip NFT Project?
Several characteristics and measures may be used to assess if an NFT project is among the greatest blue-chip NFT projects. The following characteristics are examples.
NFT Developer’s Reputation
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 identity of the brand releasing it is a major indicator that may be utilized to identify the blue chip NFT. In every business, establishing a project early on 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 broad followership. For example, if an NFT initiative launches early in the NFT area, one characteristic that determines its identity in the nascent 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 criteria that a project must pass in order to be recognized as a blue chip NFT. The project utility is an essential idea that should be incorporated in the roadmap. It provides investors with a straightforward and useful reward. If an NFT project is clear about what benefit it intends to provide 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
Crypto Punk is an NFT on the Ethereum blockchain. The majority of digital artworks and collectibles are hosted under the ERC-721 standard. Importantly, Crypto Punk is made up of up to 10,000 2424 pixels produced algorithmically. These pixels include photos of random people smoking pipes or wearing hats. It is worth remembering for investors who are interested in NFTs since an average crypto punk may be worth a lot of money. Crypto Punks are the top blue chip NFT project in terms of market value. Furthermore, there will only be 10,000 crypto punks, creating scarcity among holders and driving up selling prices.
Bored Ape Yacht Club
The unique collection of 10,000 Bored Ape and digital collectibles maintained on the Ethereum blockchain is what puts the Bored Ape Yacht Club on the list of blue chip NFT projects. A Bored Ape token costs 0.08 ETH and there are only 10,000 available. This generates market scarcity for demand, which is the primary element driving up market prices. Therefore, owners of Bored Ape tokens have complete ownership to their NFT.
Doodles
Doodles is a collection of 10,000 NFTs known for their distinct aesthetic characteristics developed by Burnt Toast. Essentially, rare heads, costumes, and hues of an artist’s palette are among Doodle’s collections. Similarly, Doodle provides collectors with one-of-a-kind experiences, such as the Space Doodle. Moreover, Doodle bank, with a total asset worth of nearly $5 million, functions as the community treasury for collectors.
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, Infostor