The term blue chip is used to describe a company that has a leading market, predominantly in terms of capitalization and size. While these companies may have any number of different markets for which they manage, their primary focus is on capitalizing on their success.
This can range from an online company managing an e-commerce platform with many stores worldwide to an enterprise firm managing one type of financial service and products, such as stocks and bonds.
If you are interested in investing, you may have wondered which companies are the blue chips in the NFT market. While you may think of a company such as Apple or Microsoft when you hear the term blue chip, consider that these companies primarily focus on software.
In this case, we’re looking at a category of NFTs more akin to what IBM was back in the 1990s. For example, IBM was not just software but also hardware. This included servers and networking equipment.
What is a blue chip NFT?
Let’s consider the recent innovation of the NFT market. The NFT explosion has been fed by innovation and interest. This is not a fad. There will be many companies diving into the NFT market, but a few will emerge as blue chips (No, not as in diamond chips).
The blue-chip NFT companies are those with established platforms that are constantly adapting and innovating.
A well-known corporation has been around for a long time, and its solvent is known as a blue chip in conventional finance. As defined by Investopedia, blue-chip companies are recognized for their ability to withstand economic downturns and generate profits despite challenging economic environments.
Blue-chip stocks are reasonably secure investments since they have a demonstrated history of success and consistent growth. Although blue chips are consistently reliable, they are expected to provide different high returns than investments with a higher potential for risk. This is likewise the case with blue chip, normal, and average non-financial companies.
Let’s take a look at some different non-fungible tokens (NFTs) that have the potential to become blue chips in the blockchain industry. While these companies and NFTs may not be blue chips in the sense of the investment industry, they all have a solid foundation to build upon. Among these are NFTs that specialize in different platforms.
What makes an NFT collection blue-chip?
Some collections have demonstrated greater consistency, and although the NFT sector is by no means old, everything is progressing at a breakneck pace.
When it comes to these assets, they are referred to as blue chips since they are the most reliable in a sector that, as is common knowledge, is notorious for its extreme degree of volatility.
But why is it considered a blue-chip investment? Take a look at the following hints that we’ve provided:
The blue-chip non-fungible token collections have a long-term value proposition; the team behind the project does have a solid and trustworthy presence in the industry; there is a clear use situation for the tokens that go further than speculation; and finally, they have a passionate society that has been built around them.
Therefore, if you are looking for opportunities that involve NFTs, keep these things in mind as you search.
Why Are Blue Chip NFTs Important?
Blue-chip NFT collections are important. Mainly because they represent an investment opportunity. They are also valuable and profitable, so these collectibles have a lot of potential. Having many blue-chip NFTs in your portfolio would be an excellent idea.
Blue chips in the NFT sector will be defined by their ability to adapt and respond to challenges. These types of companies are Google, Facebook, and Amazon.
They have a 30-year track record of success. They are not fly-by-night operations for which the future is uncertain. That’s why investing in non-fungible tokens (NFTs) with a proven track record is wise. These companies have held up their end of the bargain time and time again.
We are betting that the blockchain market has enough to keep these companies alive. They will continue to make profits no matter what happens in the crypto world. That’s why we believe in investing in them.
As long as you consider that a company should produce consistent sums of money each year, there is no reason not to invest in a blue chip NFT collection.
It is important to note that you will have to invest a very small amount into these tokens, but remember that these are non-fungible tokens (NFTs) and could be worth much more.
Blue-chip approach:
There are blue chips in the NFT market in the same manner that Bitcoin and Ethereum are the blue chips in the cryptocurrency market. The only drawback is that they are quite pricey, so you will need a sizable budget to purchase one.
There are two categories of blue chips: PFP collections (which stands for “profile picture”), which are intended to be used as an avatar on social media platforms, and generative art, which refers to more conventional works of art but is frequently constructed using a computer algorithm. Both categories of blue chips are referred to as “blue chips.”
CryptoPunks:
Blue-chip projects are also taking advantage of cryptocurrencies and creating new tokens. These digital assets have the potential to be considered blue chips.
Larva Labs, a software development company, is responsible for creating CryptoPunks, which is widely regarded as one of the earliest NFT collections. On the Ethereum blockchain, CryptoPunks are tokenized versions of 10,000 digital photographs. When you possess a CryptoPunks NFT, you are the only owner of a one-of-a-kind pixel avatar that no one else has.
The first Ethereum non-fungible tokens, known as CryptoPunks, were released in 2017; this was a long time before anyone outside of crypto enthusiasts knew about or cared about rare digital collectibles. If you can believe it, CryptoPunks was made available for free back in 2017.
The two-person team at Larva Labs launched them as an experiment. At the time, Ethereum’s ERC-721 standard for non-fungible tokens did not exist. The 9,000 CryptoPunks made available to the public were quickly purchased by owners of Ethereum wallets, while Larva Labs kept the remaining coins for themselves.
The volume of NFT transactions steadily increased over the subsequent three years; nevertheless, the demand for these verifiably rare digital collectibles exploded around the end of 2020 and especially at the beginning of 2021.
The value of CryptoPunks on the secondary market skyrocketed, which resulted in NFT sales worth several millions of dollars, auctions at Christie’s and Sotheby’s, and an abundance of CryptoPunks being used as profile images on Twitter.
Bored Ape Yacht Club:
This was the first project to take the CryptoPunk paradigm further by incorporating a roadmap, a membership community, and other amenities. Bored Ape Yacht Club was the name of the project.
They’ve become a cultural phenomenon, with many famous people and amazing events buying them. Yuga, which is their parent firm, recently purchased CryptoPunks as well.
There are several distinct entry points into the realm of Bored Ape, including the following: A Bored Ape (for a price of $150k), a Mutant Ape (for a price of $35k), a Companion Dog (for a price of $15k), the cryptocurrency $APE (for a price of $7 per unit), or a piece of Otherside Land (for a price of $5k).
CloneX:
CloneX was a partnership between world-renowned designer Murakami and RTFKT, an OG NFT company that Nike acquired. CloneX was a collaboration between the two companies. The cost is approximately $25,000
XCOPY:
XCOPY is the Basquiat of natural language translators. His aesthetic has been an inspiration to a great number of other NFT artists, and he was there when it all started. My favorite thing about collecting XCOPYs is that no tricks or commercial models are involved; it’s just art.
Since it is an edition piece, his Max Pain and Frens collection has a low entry point of $1,000; nevertheless, he also has more exclusive collections, the most renowned of which is his Grifters, priced at $15,000. If you want to acquire art without getting duped, you must purchase a few pieces of XCOPY, store them in a secure location, and call it a day.
Vee Friends:
Whether you like him or not, Gary Vee is a force of nature in the trading card game NFTs, and he consistently provides value for the players that collect his cards.
Art Blocks:
Art Blocks is a platform that showcases generative digital art created by good artists. Art Blocks created art Blocks. They provide three distinct collections, with their “Curated” line most distinguished.
The Chromie Squiggle ($12K), the Fidenza ($120K), and the Ringers ($75K) collections are the three most famous Art Blocks collections, and I recommend every one of them.
A growing number of blue-chip NFT initiatives are making it simpler and simpler to invest in at lower levels. For instance, you might spend $150,000 to acquire the most prominent Bored Ape or a few hundred dollars to acquire a small amount of $APE currency and gain publicity.
You can purchase a CloneX for $25,000 or go with their Monolith NFT, which costs $10,000. And this goes on. You won’t get as will free fewer programs through the tiers, but the costs should be consistent.
Conclusion:
In the end, you can use NFTs to create a trophy home. You can also use them to spread your brand. All you have to do is go all in with one or two NFT initiatives, then let people know that you’ve got blue-chip projects and wait for the rush.
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