Airdrops, DAOs, token issuance, and public domains are the next frontier for NFTs

Volatility is still the name of the game in the non-fungible token (NFT) sector in the face of rising and falling prices and increases in volume, but a new trend seems to be emerging in the ecosystem.

Aesthetics aside, for many investors, cBuying an NFT is like throwing a baited hook into an opaque body of water and waiting for a fish to take a bite. Sure, when Bored Ape Yacht Club came on the market, some buyers thought: You look great “ and “The community is really strong and committed”, However, these are not really robust valuation metrics that can be tested and applied to most of the assets in the NFT market.

Community activism and headline stats are important traits to consider when buying an NFT, but beyond that, making the initial purchase and hoping that it will pay off in the end is nothing more than speculation.

Airdrops, DAOs, token issuance, and public domains are the next frontier for NFTs
Airdrops, DAOs, token issuance, and public domains are the next frontier for NFTs

In the past few months or so, a handful of projects have realized the need to provide “more” to incumbents, or to “agree” through the roadmap or an autonomous decentralized organization (DAO) to help tie the ranks diversify the incumbents (and not just whales who own the majority of the project) and provide incentives for future buyers. Therefore, various projects have implemented airdrops, metaverse utilities, DAOs and token issuance functions to meet these requirements.

The Kongz Council. Source: CyberKongz

An example of a utility-grade NFT is CyberKongz, a big monkey project where NFTs broadcast BANANA tokens, that currently costs $ 63.70 on SushiSwap and OpenOcean. Each Genesis CyberKong spends 10 BANANAS per day for a 10 year period, and at the current valuation, that means first-time owners are generating $ 637 per day.

In addition to selling the token in the available markets, Owners of two Genesis CyberKongz can also breed them to create a Baby CyberKongz NFT that can be minted by issuing the BANANA token.

Other NFT “blue chip” projects adopting the “added utility” model include Cool cats, planning to spend a Token “MILK”, and Winter bears, which offers staking in an NFTX safe and has a partnership with PieDAO. The Bored Ape Yacht Club also has real perks like exclusive clothing from streetwear brand The Hundreds, airdrops for token holders, and a scheduled utility within the metaverse.

The most lucrative NFTs for investors. Source: BrokerChooser

As shown in the graphic above, Data from BrokerChooser shows that six of the 10 most lucrative NFT projects for investors are currently offering a token, airdrops or a forecast profit in the Metaverse.

Historical maximum of the NFTs from the Cool Cats collection. Source: OpenSea

About a month ago, Cool Cats cost between 1.5 and 3 ethers (ETH), but after the project announced its plans for airdrops, issuing a token, and developing a utility in the Metaverse, NFTs hit a new all-time average of 25.75 ether. According to OpenSea data, the minimum price for Cool Cats is currently 9.6 ethers.

Current prices for NFTs from the Bored Ape Yacht Club collection. Source: OpenSea

Similar results are observed with the Bored Ape Yacht Club project. where Sotheby’s auctions, project-related airdrops and the publication of the roadmap were brought into line with price spikes at NFTs.

There are no tokens, but authorized DAOs, CCOs and airdrops

There are some concerns about issuing tokens that look very similar to unregistered issuance of securities. And with the U.S. Securities and Exchange Commission, Senate and White House constantly threatening to regulate the cryptocurrency sector, not all projects are rushing to add utility tokens to their NFTs.

In fact, over the past week, some projects have come to clarify their position that these tokens are intended to facilitate the “utility” of the project and are not assets that reflect value and are intended to be traded in the open market.

In addition to being used in the metaverse and token issuance, some of the newer projects, such as CrypToadz, founded their DAO to enable the community to interact more closely with the project management team, or they named the project. presented Creative Commons “CCO 1.0 Universal”, That is, it exists in the public domain and the creator has waived “all copyrights and related or associated rights” to the project.

This allows CrypToadz owners and fans to create, mint and sell derivatives of the original project that can be sold in the open market or assigned for sale to owners of an NFT CrypToadz.

Last week, two CrypToadz sold for more than a million dollars, and the project quickly hit a floor price of 21 ethers, which many collectors hoping to acquire one of the NFTs would have left out. The project’s CCO status allows users to take advantage of exclusive derivative offers while adding more publicity to the original project. After the success of CrypToadz, other projects like CryptoZilla and Pixelglyphs have adopted the DAO / CCO model.

Like cryptocurrencies, NFT prices are incredibly volatile and are driven by various trends, sentiments, paid and unpaid influencers, and a host of other intangibles. The very experimental nature of the sector means that projects are constantly testing new methods to attract investors, build a community and stay relevant.

Tokenized NFTs could be a fad that loses its charm once all projects in the ecosystem adopt the model. The same could happen with the tactic of airdrops to the holders, and there is also no way of knowing whether the current approach of “create a DAO and buy all rare ones” it will work.

The important thing is that the space continues to innovate, and the most successful investors and collectors are the ones who keep up with new trends.

Disclaimer: Unscrupulous “pump and dump” is abundant in the NFT space. For the sake of transparency, you should know that the author of this review has positions with CrypToadz, Winter Bears, and Mutant Ape Yacht Club, and that he previously held a position with Cool Cats.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Every investment and trading move involves risks, you will need to do your own research when making a decision.

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