NFTs come and go so quickly that it’s not easy for people to keep up with the trends. But there are some NFTs called Blue-Chips and that’s for a reason. Today, we are going to explore the most valuable NFTs and why they are so expensive (and attractive.)
NFTs 101
NFTs (Non-Fungible Tokens) are somewhat related to cryptocurrencies. Still, they bring a whole new different world of possibilities if we look closely.
Why is an NFT Non-fungible? To answer this question, let’s take a look at Bitcoin. Cryptocurrencies, such as Bitcoin, Ethereum, etc., are fungible. You can trade them and still have the same thing.
NFTs, on the other hand, are non-fungible because each one has its own uniqueness attached to it. For example, when you trade an NFT for something else, you’ll have a completely different thing in your hand now, unlike cryptocurrencies.
You trade 1 BTC with your friend’s BTC; you basically end up with the same thing, 1 BTC. You trade an NFT with ID 765 for an NFT with ID 9747; you end up with NFT 9747.
An NFT’s uniqueness is verified by the serial number attached to it. Each serial number is associated with a unique art form, and we call it NFTs.
Most people assume NFTs to be just some Art Images on the internet, which they are, but what they don’t know is that each “art image” is unique and comes with countless other benefits.
The Benefits of Owning NFTs
If you own certain NFTs, you may be given entries to exclusive events, invitations to participate in tournaments, a right to play a specific character in a metaverse game, etc.
You can also stake NFTs to generate some passive income for yourself.
Investing in NFTs
Some people like to play safe and put a little of their investments into NFTs. Finding low risk, low investment, and high returns NFTs is not easy.
As Gary V said, 98-99% of NFTs are NOT Good investments. He thinks that if you’re investing in something you don’t understand, you’re basically gambling.
So, what do we do? You try to find Blue Chip NFTs. But what are those? That’s what this article is about. Let’s hop right in to understand the world of Blue Chip NFTs.
Blue Chip NFTs
To understand Blue Chip NFTs, let’s first understand the term Blue Chip refers to. In investing, a Blue Chip is seen as a stable, safe, and well-organized corporation.
In the world of art, Blue Chip is referred to as the highest quality art.
When it comes to cryptocurrencies, Bitcoin and Ethereum are undoubtedly the market’s Blue Chips. They have a good track record, and they’re not going anywhere.
Blue Chip NFTs are:
- Expensive
- Considered a good, safer investment
Investing into Blue Chips NFTs is not for everyone. Why? Because they’re SO EXPENSIVE. However, once you invest in a Blue Chip NFT, be ready for a huge ROI and countless exclusive benefits.
Although there’s no official list of Blue Chip NFTs, the good news is that’s not how we decide which NFTs are Blue Chip investments.
Track record and trading history are two of the most important factors when investing in NFTs. If a project has been dominating the market for a while, and the NFTs provide excellent value to the holders, we call it Blue Chip NFTs.
NFT Blue-Chip Examples.
CryptoPunks
Comprising 10,000 unique art forms, Cryptopunks is one of the earliest and most expensive NFTs. The project was launched in June 2017 by Lava Labs Studio. If you want to buy a CryptoPunk for yourself, be ready to spend $300,000 to $500,000 on a single piece of art. The project has fetched more than $1M for a single NFT.
Bored Ape Yacht Club
This one, too, is a collection of 10,000 unique Bored Apes. Launched in April 2021, BAYC is one of the most successful NFT projects. The reason behind their success is their exclusive benefits. For example, you will be added to private Discord servers with other celebrities that own these NFTs. Powered by the Ethereum blockchain, BAYC can be referred to as a Blue Chip project as it ain’t going anywhere.
Renowned celebrities such as Justin Bieber and Neymar Jr. own Bored Ape NFTs.
Bored Ape Yacht Club NFTs go for around $250,000 each.
Azuki
Azuki is a collection of 10,000 unique anime art forms. At the time of writing, Akuzi’s floor price is 26.5 ETH. (Floor price is the minimum price of an NFT in a project)
One way of looking at Blue Chip NFTs is to invest in some of the projects mentioned above. Although this option is relatively safe, it is pretty expensive. You’ll have to invest 100s of thousands of US Dollars to be in the Blue Chip game.
Another way of investing in Blue Chip NFTs is to find future Blue Chip projects. Those who have been into the NFT game for a while can identify the future blue chips, but what about those new to the world of NFTs?
How to Identify a Blue-Chip Project?
Rarity
The more rare an NFT, the more chances it has to be in the list of Blue Chips. There are some Rarity Tools online from which you can check how rare an NFT is. If you find a rare NFT project but the NFTs are expensive, buy the cheapest of that collection. (Surely, it will be a good investment)
Reputation
If you find a project with a good reputation, launch an NFT project, enlist it into your future investment. The reason why is that they already have a good reputation in the crypto space, so they won’t have to prove anything to anyone.
The Artist
You may have heard that Beeple sold his NFT collection for $69M. Try to find the next Beeple. Apart from art and its rarity, the artist’s hype also sets the price of an NFT.
Developers
Developers also play an essential part in bringing these ideas into a reality. When you’re thinking of investing in a Blue Chip project, always remember to look up the project’s developers.
Celebrities Linked with the Project
Celebrities always invest in Blue Chip projects. If you see a world-famous celebrity invest in an NFT project that checks all the above-mentioned traits, congratulations, you just found a Blue Chip project.
Active Community
Another big trait of a Blue Chip NFT project is a huge, active community. The community connects with each other to plan exclusive projects and make the most out of the benefits that come with owning their Blue Chip NFTs.
Final Thoughts
People want to be sure that their investments are safe and come with a return. Before investing in an NFT, make sure that the project has all the traits of a Blue Chip project, and if it doesn’t, don’t bother investing.
Blue Chip NFTs aren’t easy to identify. Some of the most famous ones are considered blue chips, but they’re too expensive, at least for some. So, if you want to invest in a Blue Chip project, find a project that has the potential to become a Blue Chip, and invest.
Frequently Asked Questions (FAQs) about Blue Chip NFTs
What does a blue-chip project mean?
A Blue Chip project means that the corporation has a stable, recognized, and well-established market. Blue Chip projects are known as safe investments, meaning that your investment will grow as did the track record grow in previous investments. The word blue-chip comes from Poker.
What is a blue-chip organization?
A Blue Chip organization is a long-lasting company with a stable, profitable future. Well-established companies like Apple, Facebook, and Microsoft are known for their steady growth and good investment track record.