Since the market boom in 2021, hundreds of NFT projects have been minted and new ones are added every day. Only a few of these groups – often known as Blue Chip NFTs – have been able to establish themselves over a long period of time. Excellent debate illustration using Project Moonbirds.
Moonbirds have been the number one topic of conversation in NFT space for the past week. In the 10 days since it was minted, the group has seen a total trading volume of over 150,000 ETH, equivalent to about $475 million, more than any other NFT project. Aside from the reasons for the massive interest, the success of Moonbirds has sparked a new debate about the state of blue chip NFTs.
What are the leading stocks in conventional finance?
Leading stocks are investments that are considered safe, long-term investments and generate consistent returns on the invested capital. Usually, premium companies have been around for many years to decades, are well capitalized and have a proven track record; Even in tough times for the markets. For example, companies such as Coca-Cola, IBM, Disney, and General Motors are seen as “big stocks” in traditional finance.
Investing in blue chips is less risky than speculative bets such as small stocks or early stage companies. The original term has its origins in the classic 3-suit poker chip, where the blue chips have the highest value. In the 1920s, when the term was first used, stocks over $200 were the leading stocks of today.
Blue chip NFTs
In terms of NFTs, premium segments refer to groups that have risen in value significantly – market watchers believe that these digital assets will maintain their high value for a long time to come. Aspects such as return on equity (ROA), debt ratio (equity to debt ratio) or other metrics are not really relevant to NFT projects. Factors that determine the status of excellent companies include general brand awareness and community involvement. In addition, it is the use cases and benefits as well as the prominent advocates that determine the minimum price and sales volume.
In conventional finance, blue-chip stocks are all about longevity, something NFT can’t do yet. CryptoPunks is one of the first groups of NFTs and has only been around since 2017. The most successful NFT project to date, the Bored Ape Yacht Club (BAYC), has been in existence since April 2021. Since the NFT explosion in the spring of 2021 there have been hundreds of projects entering the market and are Growing day by day, it is impossible to keep track of them all.
In general, the term blue chip NFT means that the project will retain high value in the future. In other words, the group can act like a traditional preferred stock in the future and survive through multiple market cycles. There is no “objective” definition of the term and in many cases market participants simply describe their pet projects as excellent.
Moonbirds: The next blue chip?
Similar to the Bored Ape Yacht Club, Moonbirds are said to offer other benefits in addition to the classic “profile picture” on social media. An NFT contract unlocks membership in a private club that expands over time. For example, users can access an NFT-protected Discord server where information about upcoming NFT events and other events and developments in the field are shared.
The pool was minted at 2.5 ETH per piece and the smart contract includes 5% royalties on every secondary sale added to the creators. According to the official website, owners of NFTs also have full intellectual property rights over them. The minimum price (floor) for a Moonbird is currently 32 Ether, which is approximately $100,000 USD. Some users are convinced that the large volumes and prices really speak to the classification as NFT. However, the group is less than two weeks old and the fuss surrounding cute birds can go away as quickly as they appear.