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Top Tier Athletes And Their Involvement In NFT World
April 9, 2022
Top Tier Athletes And Their Involvement In NFT World

Many parents support the idea of their offspring becoming athletes and sports stars. When asking a child about their career aspirations, becoming a sports star would top the list. Though reaching the pinnacle is difficult, it is one of the best careers in the world. The attraction to sports is the players' financial gain and adulation. Anyone who reaches the top of any sport will become financially free. Furthermore, players from the most popular sports are celebrities on par with actors and famous businesspeople.

The vast sums involved in sports are due to the massive interest and demand from the general public. People love sports and are willing to pay enormous money to watch sporting events. Due to the fascination, businesses not involved with sports pay massive advertising fees to become associated with the sport. There are many sports, from golf, martial arts, cycling, and racket sports to track and field events. It is an endless list.

However, some sports have better earning potential than others. Sports such as soccer, football, basketball, golf, and tennis are some lucrative sporting activities. Anyone who reaches the pinnacle in these activities will easily earn millions of dollars. There are few sports stars whose fortunes run into billions. Earnings are not limited to the salary received from the clubs. Top sports stars can accumulate wealth through endorsements, sponsorship deals, and payments from their clubs. The massive earnings are due to the player's skill set combined with their popularity. A famous, well-loved star will command the highest salaries.

Investment Options For Sport Stars

Like all wealthy people, sports stars invest their income; they use their finance to buy more wealth. It makes zero sense for money to sit idle in bank accounts. Investments take all kinds of forms. From starting their own business, investing in other companies to involvement in financial markets are some of the popular forms of investments. Cryptocurrencies and their associated technologies have become mainstream in the last few years. The portfolio of many wealthy people, including sports stars, usually has some investment in this arena.

Investing In NFTs

Non Fungible Tokens (NFTs) are one way to invest in cryptocurrency technologies. This field has attracted many sports stars. Some famous sports stars who hold NFTs include Stephen Curry, Serena Williams, Shaquille O'Neal, and Neymar Jr. These are just a few of the hundreds of sports stars who have become involved with NFTs.

NFTs, with their cartoon art representation, appear fun and appeal to the younger generation. Given that the sports star demographic is of the lower age bracket, it makes perfect sense for these people to invest in NFTs. Owning NFTs can help market sports stars and their brands. Becoming associated with a popular NFT collection will increase the media coverage received. For example, if an athlete buys a blue-chip NFT such as the Board Ape Yacht Club, the news will be seen on all major outlets and social media channels. This is a win-win situation for both the project and the athlete.

The more an athlete is featured in the popular media, the more it enhances their prominence. It allows them to demand more outstanding salaries and endorsements. The involvement of top-tier athletes will help drive up the price of the NFT, a good situation for the NFT project. Additionally, NFTs are an investment opportunity. Though buying NFTs is highly speculative, there is an excellent chance that blue-chip projects will see a price rise. Top-tier NFT projects such as BAYC and Azuki continue to see a price increase.

NFTs can help well-known athletes connect with their fans. The trend is for athletes to buy NFTs from significant projects to date. There will be a more significant number of athletes who will release their own NFT collections. It offers the athlete a way to bond with fans in new and innovative ways.

Holders gain the opportunity to meet the star or receive merchandise. This helps to solidify the relationship; it will lead the fans to become even more interested in the athlete's brand and helps to foster a community of fans in ways never seen before. There is also a financial benefit for the fans. Owning the NFTs of a sports star, the fan can sell these assets. Previously the relationship has been a one-way street; the athlete benefited from fans without much reciprocity.

If the perceived value of the star is on the rise, the price of the NFT will increase. It offers the opportunity for the holder to sell their NFTs for a profit.  NFTs open up all manner of possibilities in the world of sports. Sporting clubs can sell NFTs, which will offer their fans the opportunity to gain merchandise, special ticket allocation, or vote on club governance. NFTs are relatively novel, but there is no doubt that this is a field that opens up opportunities never seen before in the world of sports.

 

The Importance Of The Founder In NFT Projects
March 31, 2022
The Importance Of The Founder In NFT Projects

People who've followed NFTs for some time are aware of these essential considerations when buying NFTs.  Many new members of the NFT community overlook this critical aspect.

Many newbies buy NFTs without much consideration. The usual pattern is for people to hear about NFTs, find the NFT community on Social Media platforms such as Twitter, and become part of the Discord servers of various projects.

A busy server and quality artwork ensure the newbie becomes involved in the community. It leads to the person minting the NFT on launch.

Following the mint, it's common to see the price of the NFT fall in value. After a few months, the founders neglect the project, and the holders find themselves with an NFT with little value.

Since this neglect has been the standard pattern seen throughout 2021, most NFTs on the secondary market are worth less than the price paid on launch.

There have been numerous cash grabs. The founders make six figures from the NFT project, but the investors have a losing asset.

The success stories in the NFT space have received praise. For example, the Bored Ape Yacht Club (BAYC) is admired throughout the NFT community, and any NFT stories in the mainstream media feature the BAYC regularly.

For every successful project, there are far more failures.


Mistakes Made By More Experienced NFT Buyers.

After spending time in the NFT community, people become aware of the requirements of a good project. They commonly look for the following characteristics:

Doxxed Team. The team mustn't be anonymous. Anonymous groups are more prone to carry out rug pulls (where the founders close the project after launch). Investors have no idea of the identity of the founders. As a result, the groups can quickly abandon the project and scam the investors.

Great Community. There must be a sizable community behind the NFT project. People look at Social Media and Discord profiles to gauge the size of the community. Without a community, there is no one to buy the NFTs.

Good Artwork. Essential to ensure the artwork is high quality and in line with the current trends. For example, there is a great deal of admiration for the artwork by Doodles and Invisible Friends NFT projects.

Utilities. Projects need more than artwork to become a success. The only exception is if the NFTs are from an established artist such as Beeple, Banksy, or another artist with a big following in the traditional art world.

Projects without a well-established artist need to provide utilities in the form of Play To Earn games, events, staking possibilities, and more.

People seeking these factors in projects are better positioned than newbies. But many projects satisfying these conditions still fail to succeed, especially in this current climate where the NFT space is experiencing a bear market.


The Importance Of The Founder

The most critical factor in a project is the founder. Many investors entertain projects because the founder is well known. They could be a celebrity or an industry leader.

Unfortunately, many of these projects flounder in the long term. Shortly after mint, there is a pump in price. But a few months after the launch, the value has become less than the mint price.

The founders are not highly active in the project; they make no effort to immerse themselves in the community.

It leads people to conclude (probably correctly) the founders are not interested in the project. The community loses faith, sells their NFTs, and projects end up in the backwaters of the secondary market.

A successful project is one where the founder engages with the community. They should be active before and after the launch. Making themselves involved in the conversations on Discord and Ask Me Anything (AMA) or Twitter Space shows a genuine interest in the project.

An example of a successful project is VeeFriends by Gary Vee. The founder is always available. He is constantly talking about his projects on Social Media and does not go missing in action.

 

Wrapping Up

The most important consideration for any NFT collection is the founder, motives, and project vision.

Unfortunately, the NFT world has seen many cash grabs. The devs and the founders fail to take much interest following the launch.

The reality is that unless the NFT collection is by a genuine, highly established artist, the project starts after the launch.

The easy part is the stage up to the launch; it's the segment where the founders are raising capital to realize a vision. Making their promises become a reality involves hard work.

To date, in the NFT space, many founders are fond of the idea of raising capital. But dislike the effort to complete the project and make the utilities and the roadmap a reality.

Many experienced investors in the NFT community understand the situation and no longer mint NFTs easily. This is a contrasting situation to 2021, where people readily bought NFTs.

Perhaps this explains the current bear trend in the NFT world; sales volumes are significantly lower than the record-breaking numbers a few months ago.

For the investor, the best approach is to take a great deal of interest in the founder. Presenting evidence of interest by the founder ensures confidence in the community.

The involvement of a famous name does not guarantee long-term success.

 

Common NFT Scams: Identified
March 24, 2022
How To Identify Common NFT Scams

Scams exist in many areas of life, defined as fraudulently obtaining money or goods from unsuspecting victims. 

The Internet is hugely beneficial for society and helps improve many people's lives. But it has led to criminals using it to defraud people—from phishing and fake shopping websites to dating scams. 

Cryptocurrencies use the Internet and are not exempt from scams. The anonymous nature of cryptocurrencies has made things easier for fraudsters. 

NFTs are an extension of cryptocurrencies and are an arena with frauds targeting newbies and the uninformed. Since this is a relatively new technology, most people have likely been victims of one form of scam or another.

What are some of the common NFT scams?

Rug Pulls

After a project launch, the founders exit the project with investors' funds. The founders close the assets associated with the project, such as the Discord server and Twitter account, and leave the scene. With the founders no longer involved and little trace of the project, the price of the NFTs decreases until it becomes worthless. The investors possess nothing more than NFT JPG images on the blockchain. 

The NFT space has been rife with these scams throughout 2021. As people become aware, these deceptions are becoming less common.

Anonymous founders carry out rug pulls; people have no idea of the real identity. Given the anonymity and lack of traceability with crypto wallets, it's a straightforward scam to perpetuate.

Cash Grabs 

This is rife in the NFT space. The founders of the project promise various developments for the project. 

After the launch, they fail to implement these promises. Over time, the value of the NFTs decreases, and the investors are left holding the bag. 

Nearly every NFT investor has been a victim of such activities. Such schemes are also known as a slow rug; the founders leave the project slowly. 

These schemes are difficult to classify as a fraud; the founders are in a position to kick their promises into the long grass. And many often come up with all manner of excuses why developments fail to progress. 

Pump And Dump 

This is where an individual or a group of people team up to buy large quantities of the cheapest NFTs in the collection (buying the floor price). 

They drive up the collection price, also known as "sweeping the floor" or "wash trading." After a significant price increase, the NFTs are sold for a profit, and the culprits exit the market. The value of the NFTs decreases, people are left with NFTs worth less than the price paid. 

The project founders are known to engage in such practices to drive up the price of their collection.

Project Impersonation

Fraudsters try to mimic real projects by creating websites and social media profiles with a similar appearance to the actual project. 

They aim to lure unsuspecting victims to a website and mint fake NFTs. The victim connects their wallet to mint an NFT, which turns out to be an empty file. 

Victims are targeted through direct messages or posting links in the comment section of Social Media platforms.

The problem has become rampant: fraudsters routinely hijack the real Discord server of a project, disabling the power of admins and moderators and placing links to direct members to a fake minting website. 

Customer Support Scams

This is a problem commonly seen on Discord and Telegram. Scammers contact through direct messages offering to help people mint NFTs or provide bonus airdrops.

As a customer service representative, the scammer tries to obtain wallet details such as passwords and the seed phrase. Using the information, fraudsters drain the funds from the wallet.

The problem is that NFT projects warn members not to engage in direct message conversations. Official members of staff have ceased contact with members directly through direct messages. 

Experienced people will not fall victim to such scams; newbies are the intended targets. 

Intellectual Property Theft And Fake Collections

There are projects known to take the artwork from talented artists and use it for their collection. Without agreements in place, this is a form of theft.

Projects using artwork from an artist without permission are a theme in the NFT community. 

On discovery, the reputation falls, and the value of the NFTs decline in price; it becomes a loss-making investment.

Some individuals take artwork from upcoming projects, load it to marketplaces such as Open Sea and aim to impersonate the actual project.

Buyers of these NFTs become victims of a scam.

Conclusion

Scams are common because the NFT market is new, with many new people entering the space. It allows fraudsters to exploit inexperience and vulnerabilities.

The best approach for a newbie is spending time in the NFT community, networking with others on platforms such as Discord, and becoming fully aware of the technology before major investment sprees.

Yuga Labs & Bored Ape Yacht Club (BAYC) Launch ApeCoin Tokens
March 23, 2022
Yuga Labs & Bored Ape Yacht Club (BAYC) Launch ApeCoin Tokens

Bored Ape Yacht Club (BAYC) is the most iconic NFT collection; it's set the standard for others to follow. The nearest rival CryptoPunks, based on nothing more than artwork, was taken over by BAYC's creators, Yuga Labs, in March 2022. This acquisition has created the biggest juggernaut in the NFT world; no other project comes close in size.

BAYC 's success depends on its ability to evolve, pivot, and provide value to its holders. While many projects offer artwork and no more, BAYC has significantly contributed to the NFT world. They airdropped NFTs from other projects (such as Bored Ape Mutant Club and Bored Ape Kennel Club) to BAYC NFT owners, provided in-person events, and developed online games for its members. Yuga Labs allows the holders to use the NFT they own to create and sell merchandise.

 What is ApeCoin?

As part of this ability to grow, in March, Yuga Labs collaborated with the collective named ApeCoin DAO to drop ApeCoin ($APE) token.

ApeCoin acts as a digital currency in the same way as many other cryptocurrencies. People will be able to spend ApeCoins on upcoming products and services BAYC will offer, including the Play To Earn game launching in 2022. The hope is that ApeCoin may evolve beyond the BAYC ecosystem in the future.

There is a difference between Apecoin and cryptocurrencies such as Bitcoin, Ethereum, and Solana. Bitcoin, Ethereum, and Solana are native coins derived from their perspective blockchain. Apecoin does not have its blockchain and resides on the Ethereum mainnet; it's considered a token rather than a coin.

ApeCoins are not too dissimilar to Axie Infinity Shards (AXS), the native governance token of the Axie Infinity network. Axie Infinity players can buy, sell and trade using Axie Infinity Shards.


Distribution

A total of 1 billion ApeCoins were available; the allocation was as follows:

15% to the holders of Bored Ape Yacht Club and Bored Ape Mutant Club holders,

15% to Yuga Labs,

14% to the partners that helped launch the tokens,

8% to Yuga Labs founders,

1% to charitable events,

47% to ApeCoin DAO

ApeCoin DAO

ApeCoin DAO is part of the Ape Foundation, the governance behind the token. They have the power to manage the everyday running, project management, and bookkeeping of the token system. Holders of the ApeCoins and the DAO can dictate the ecosystem's future, thus making ApeCoin a decentralized system.

 ApeCoin DAO consists of leaders from the Social Media, gaming, and crypto space. These people include Alexis Ohanian (from Reddit), Amy Wu (from FTX), Dean Steinbeck (from Horizen Labs), Maaria Bajwa (from Sound Ventures), and Yat Siu (from Animoca Brands).

The BAYC project and Yuga Labs are separate entities from the ApeCoin DAO. If BAYC and Yuga Labs were closely connected, the project would come under the scrutiny of The Securities and Exchange Council of the United States. The Securities and Exchange Council is the government organization responsible for regulating Securities and protecting investors. To date, the organization has not focussed on NFT projects.

Launch 

On launch, the price of ApeCoins started at almost $40 per token. During the day, the token fell to around $6 as people who received free tokens sold their share. A few days into the launch, the price of the ApeCoin sits at around $11. The vast market cap size has meant that ApeCoin is in the top 50 of all cryptocurrencies.

The token was available on all major exchanges such as Coinbase, Binance, KuCoin, and FTX. It's unusual for new tokens to be widely known, but the popularity of the BAYC meant exchanges readily accepted ApeCoin onto their platform.

Original holders of BAYC NFTs were given 10,094 tokens for each NFT they held. This translates to nearly $400k at the price height and $60k near the bottom.

ApeCoins show that the Bored Ape Yacht Club project continually provides the holders with utilities. These utilities translate into social and financial gain. Unfortunately, the NFT space is riddled with scams and rug pulls. But Yuga Labs have set the blueprint for what makes a fantastic NFT project, an aspiration for other projects to follow.

No one can predict the price movement of digital currencies; there are no guarantees of price increases. The ecosystem created by Yuga Labs is continually expanding rapidly; it's probably a good bet to suggest ApeCoins are potentially a significant investment.

As always, do your own research before investing.

 

 

 

 

The Similarities Between Crypto And NFT Projects And How NFTs Help The Crypto World.
March 21, 2022
The Similarities Between Crypto And NFT Projects

Cryptocurrencies have been around for a long time: Bitcoin, the first cryptocurrency project launched in 2009. There are currently over 16,000 cryptocurrencies currently in circulation.

With each year, the awareness of cryptocurrencies has increased. But digital currencies are still an unknown quantity for the vast majority; most people are not fully aware of their full function.

 

The Similarities Between Crypto And NFT Projects

NFTs hit the headlines in 2021; it was the word of the year and has become well known as some popular cryptocurrencies such as Bitcoin and Ethereum.

A cryptocurrency project has two components, the blockchain and a native coin associated with the blockchain. Blockchain is the technology, and the native coin is the digital currency.

NFTs are different from cryptocurrency, but NFT and cryptocurrency projects have many similarities. They both have a team or company working on developing and completing the project's aims.

Bitcoin is a blockchain, and the associated coins serve as a digital currency. Bitcoin as a blockchain is old technology and serves no purpose other than registering the transactions of its digital coins.

There are other crypto projects with more features than Bitcoin. For example, blockchains such as Ethereum, Solana, and Polkadot allow advanced information storage facilities on their blockchain.

XRP is the native token associated with Ripple; it plans to act as a money transfer utility at meager prices. Ripple and its native coin XRP, seek to compete with the fiat currency.

Tether is the native token linked with the Tether network; it's a stable cryptocurrency. While other cryptos face high volatility and swings in price, Tether is secure as it's pegged to the US dollar. It acts as a reliable medium of exchange and a way to store value.

 

All cryptocurrency projects strive to provide a service. As the oldest cryptocurrency, Bitcoin has the clout to act as nothing more than a digital currency. Other cryptocurrency projects aim to provide some form of value in addition to serving as an electronic currency.

This is similar to the utility feature of NFTs. NFT utilities can consist of events for the holders, play-to-earn games to ownership of virtual land. Owners gain other benefits in addition to the great-looking artwork stored on the blockchain.

A crypto project has a white paper to describe its aims and the achievements they seek to realize. All NFT projects have a white paper and roadmaps that state the project's ambitions.

All crypto and NFT projects try to build a community at the start; they do this through giveaways. NFT projects will try to provide free NFTs, while crypto projects offer free currency airdrops.

Building a community on Discord and using Twitter as the leading Social Media communication channel is a shared feature.

The blockchain Polkadot and the NFT project World Of Women have become successful projects. They do not need to make a significant effort to grow; the expansion takes place organically. Many external sources will discuss and market these projects, and people will readily engage.

 

The Differences And How NFTs Benefit The Crypto Ecosystem

NFTs use blockchains to register and record ownership details, and a crypto project helps facilitate the requirement. Crypto projects have enabled NFTs to become successful entities in their own right; without blockchains, there cannot be NFTs.

The success of NFTs has spawned a new industry. Entrepreneurs can pursue new lines of business, further employment opportunities, and an additional investing stream for investors.

NFTs have helped many crypto projects. The likes of Solana, Polygon, and Tezos have seen people using their blockchain in increasing numbers, which has led to a positive impact on these projects. The value of Solana coins was less than a dollar in early 2020; its price rose astronomically, reaching as much as $250 in 2021.

As well as giving the blockchain real-world use, NFTs have encouraged a new range of people to enter the crypto space. The cool-looking artwork attracted people who would not have entertained blockchain technology previously. It has led to people examining the broader crypto ecosystem and other projects in the crypto space. The user base of cryptos has increased.

 

Conclusion

Until recently, most crypto projects have been speculative with no real-world use. People could exchange cryptos as payment between themselves, but there is no central payment system like the traditional banking system.

NFTs projects, offering only artwork, have limited physical world use. But utilities such as play-to-earn games, casinos, and events change the landscape.

NFTs allow crypto-based blockchains to flourish and provide a beneficial effect. There is little doubt that both crypto and NFTs will see a greater prevalence and use in society with time.

 

Ideas On Starting Your Own NFT Company
March 19, 2022
Ideas On Starting Your Own NFT Company

The Internet provided entrepreneurs the opportunity to start many businesses. At the start of the century, the number of companies that utilized Internet technology was low. Two decades later, nearly every business uses the Internet in some form. A vast number use the Internet as the cornerstone to sell goods and services.

NFTs use blockchain technology with the Internet as their foundation. The inception of NFTs has provided entrepreneurs with interest in this technology to start up new businesses in this space.

A popular business to operate in the NFT arena is to start an NFT project. The company or the group of people create NFTs and market the project to investors. The low barrier to entry has meant big budgets are not necessarily required to make a start.

As time passes, investors have become picky with projects, companies with bigger budgets are now more likely to succeed. They have the means to provide better marketing; companies with significant capital can offer innovative and higher quality NFTs and associated utilities.

 Many artists, brands, and businesses are unaware of the NFT world. One business idea is for companies to complete NFT projects on behalf of others. This opens the doors for NFT companies to offer their expertise.

 

NFTs For Artists And Photographers

NFTs as art is an entity on a low trajectory; there are many art-based projects, and the market is saturated. Much of the artwork looks similar, it's cartoon-based and created by unknown illustrators and digital artists.

Many projects seek freelancers for low sums of money from the developing countries through freelancing marketplaces such as Fiverr and Upwork. NFTs have been in circulation for over a year, allowing only a small market share for each PFP NFT.

However, there is room for established and talented artists, especially creators with a solid fan base. Their work in the form of NFTs will entice traditional art collectors to enter the space. NFT fans are likely to see these NFTs as a good investment because the work is from an established artist.

NFT companies could contact established artists and offer their services. The NFT company will carry out the process from inception to launch. There is little involvement for the artist other than providing the artwork and participating in marketing activities such as making appearances at events to showcase the project.

Photography is similar to art; companies can help established photographers sell their work as NFTs. NFT open up another route for photographers in addition to media outlets and marketplaces such as Shutterstock and iStock Photo.


NFTs For Musicians

Another avenue for NFT companies is to align with musicians. NFT has provided a way for musicians to store their music as digital assets on the blockchain.

Fans will buy the NFTs to access the music; there is no need to use expensive record companies for marketing their product. It becomes possible for musicians to use NFTs to ensure they keep a high percentage of the sales revenue.

NFT companies can help musicians to release music through NFTs and the blockchain. As it's a simple process, there is an excellent profit margin for the NFT enterprise.

Musicians such as Eminem have released NFTs incorporating music, and other musicians are likely to capitalize on NFTs going forward in time.

 

NFTs For Brands And Companies

 NFTs open up opportunities for brands to sell NFTs of items associated with their company. For example, a fashion company can issue handbags as NFTs to provide another revenue stream. They can go further by showcasing their goods in the evolving Metaverse and pursuing additional opportunities.

Brands can even offer free NFTs to their people as a marketing opportunity. For example, Papa Johns, the pizza chain, recently issued 19,840 NFTs for free through the Tezos blockchain. This received a great deal of publicity for the company, which will drive up sales of its food products.

NFTs companies can contact brands to help them launch NFTs. These offerings are not limited to big corporations such as Nike or Gucci. Small to medium-sized companies can capitalize on the popularity of NFTs and make NFTs work for them.

 NFT is a technology that many companies do not understand well. NFT enterprises could educate brands on the benefits and acquire business to launch NFTs for these organizations.

 

Wrapping Up

Technology has opened up all manner of opportunities, and NFTs are no exception. Between 2010 and 2015, Social Media became popular with Twitter, Instagram, Pinterest, etc. Many companies began to use Social Media for their businesses, and companies who offered expertise in this sector capitalized. NFTs are at a similar stage; there is the possibility for individuals and companies to help musicians, brands, and artists make use of NFTs for mutual advantage.

Scotch Whisky Retailer Demonstrates The Real-World Use Of NFTs
March 14, 2022
Scotch Whisky Retailer Demonstrates The Real-World Use Of NFTs

NFTs are unique, no other version exists, and verification of digital asset ownership is possible by storing data on the blockchain. To date, NFTs have been dominated by art and online gaming, with music also having an impact. Art acted as an excellent introduction to NFTs for the world. In the early days, there were no utilities associated with the NFTs. This was probably a good thing. The introduction of utilities such as staking, decentralized autonomous organization (DAO), and yield farming in one large chunk is too much to digest for anyone but ardent crypto techies. 


As investors become comfortable with the premise of blockchain and NFTs, real-life utilities are becoming realized. The Scotch whisky retailer, "The Whisky Barrel," is one of the early adopters to utilize NFTs away from art, gaming, and music. 


With investing, there are two classes: standard assets and alternative investments. Traditional assets involve stocks, bonds, and cash, while alternative investments feature collectibles such as art, antiques, and whisky. 


Investing in whisky has been on the rise since the turn of the century. Creating high-quality mature whisky is a highly capital-intensive process for the distiller. The maturation age for fine whisky is between 12 to 50 years. To offset costs, distilleries sell casks at a low price at the start of the distilling process. The distiller handles the storage and distilling process, while brokers deal with the sales and marketing. Investing in whisky can return as much as 54%, with an average return of 10% per year over five years. Many people buy whisky for investment purposes rather than enjoyment.


Such investment involves the investor, the broker, and the distiller. The broker handles the sales and marketing and takes their fee from the investment returns. 


NFT and blockchain technology allow the distiller to deal directly with the customer and alleviate the need to use brokers. Distillers can sell their aged bottles and casks as NFTs on the marketplaces, and customers can buy direct. This is similar to musicians who can directly market their work as NFTs to the customer without record companies. 


"The Whisky Barrel" is focused on the authentication aspect of their products. The owner of the NFT is certified to own the actual product; there is no possibility of counterfeit or fake spin-offs becoming part of the equation. It's easier for the owner to sell their commodity as the potential buyers will have fewer concerns about the authenticity of the purchase.


"The Whisky Barrel" will use the Solana blockchain for their NFTs as this is an eco-friendly platform with low transaction costs. 


This moment is not the first time NFTs have represented whisky. "UniCask Co Ltd" became the first minter of whisky NFTs. In December 2021, the 1991 vintage cask of Single Malt Scotch Whisky Springbank was divided into 100 portions and sold as NFTs. The bottling of the whisky takes place in 2041. Until then, the holders can own and trade this rare whisky as an NFT from anywhere in the world. With each year the value of the whisky increases, we will see the price of the NFTs will rise. 


Since then, "UniCask Co Ltd" has created NFTs for another whisky product. "UniCask Co Ltd" is in the process of constructing online games to act as utilities in the same manner as traditional NFTs. 


The great thing about NFTs is the authentication aspect, only one version of the NFT can exist and eliminate the possibility of fraud or other malpractices. 


There has been rhetoric about NFTs authenticating expensive commodities such as Rolex watches or Chanel handbags. These are items that can increase in value with time. But NFTs do not eliminate the possibility of counterfeit products in such a scenario. The owner of the NFT, with the item in their possession, can always present a fake product. With time, blockchain and NFTs will solve such issues with the insertion of technology within the collectible pieces. 


There are some exciting prospects for NFTs in the future. As 2022 rolls on, blockchain and NFTs see their technology utilized away from art and online gaming. Sandbox and Decentraland sell virtual land. In time, NFTs could act as a contract for buying and selling real estate in the physical world.


Trading: Investing In NFTs To Make Money
March 14, 2022
Trading: Investing In NFTs To Make Money

There are many ways to invest capital to make a profit. The traditional investing methods involve stocks and shares, real estate, and high yield savings accounts with financial institutions. Cryptocurrencies based around blockchain technology have become a popular vehicle for investing and trading in recent years. NFTs, like cryptocurrencies, revolve around the blockchain. NFTs became well known in 2021 and have become a fashionable investment and trading avenue for those interested in finance, technology, and cryptocurrencies.


Like all investments or any other form of buying and selling, there is no guarantee of profits with NFTs. While there is a possibility of making money, there is also the chance of losing; the more informed the investor, the greater likelihood of making the right calls. With this in mind, let's look at trading NFTs. Speculators buy NFTs because the price will increase and sell as the market price rises. People purchase new projects or ones already launched and established.



Buying And Flipping NFTs From New Projects


Many "paper hands" buy into newly launched projects and sell immediately for a profit. While this was easier in 2021, with the massive number of projects launching daily and the lack of long-term vision from most projects, this strategy is not straightforward. Many people buy NFTs only to find the project fails to sell out, and their NFT has decreased in value. With little chance of the price of the NFTs increasing, it's a losing situation.


Due to the vast number of projects launching regularly, it has become difficult to track down great projects. And competition from other investors makes it challenging to obtain whitelisted spots for good projects to enable early purchase. 


Top collections command a considerable demand. The project owners become picky about who makes the whitelist to purchase during the presale period. Without access to the presale whitelist, public sale purchase is the only option. With the vast competition, the chance of buying in the public sale is slim. People can become aware of good projects through alpha Discord servers which carry out all the research on behalf of the investor.

Websites listing projects coming to the market and information from Twitter is an excellent way to find project launches. Due diligence is required to ensure the project is worth pursuing. For example, checking the project is doxxed, has a big enough community, and has long-term viability utilities.


Buying And Flipping NFTs From Established Projects

Buying into established projects is another trading strategy. But ready access to more significant sums of capital is required. On the Ethereum blockchain, NFTs, which were hundreds of dollars on launch, become thousands of dollars. This kind of capital is not available to everyone who wants to purchase. For instance, in the summer of 2021, it was possible to buy a Bored Ape Yacht Club NFT for ten thousand dollars; these NFTs became worth six figures and beyond within a few short months. 


The alternative is to buy on other blockchains such as Solana with lower prices. But Ethereum remains the number one blockchain, and all big projects focus on the Ethereum MainNet. Many projects on blockchains such as Solana become rug pulls where the founders end the project and disappear with the investor's money. Some allow a slow rug to take place, the developers lose interest, and the project comes to a halt. The price of NFTs falls over the weeks and months; the investor has a loss-making asset. 


Buying any NFTs from projects destined for success is the aim of NFT traders. Investors should ensure a steady trading volume; others are buying the assets, it's no point buying NFTs where the price is high, but trading volume remains low. 


Rarity traits are something people should investigate. These NFTs are likely to increase in price significantly higher than common NFTs. Looking at NFTs near the floor price but with rarity, traits is a good idea. These are incorrectly priced and will see a more significant jump in price as the value of the NFTs and project rise. 


Wrapping Up


NFTs have become an integral part of the blockchain ecosystem; people wishing to trade NFTs for profit are the most significant contributor. The investor will make better trading decisions when possessing greater knowledge and information. Spending time studying the market and becoming more aware of the NFT space is a wise idea. Focusing on one successful project and appreciating all the NFTs and rarity attributes within the collection might be an avenue to pursue. 


Note: This article is not financial advice. Trading NFT or any investment is not risk-free; people should always do their own research before investing. And remember, never invest money you cannot afford to lose. 

5 Female-Led NFT Projects Explained
March 10, 2022
5 Female-Led NFT Projects Explained

This month will feature International Women's Day. According to Wikipedia International Women's Day "is a global holiday celebrated annually on March 8 to commemorate the cultural, political, and socioeconomic achievements of women.

Technology and finance have traditionally been male-dominated industries with a low representation by the female gender. Unfortunately, the world of NFTs, involving technology and finance, has also seen under-representation. Men are more likely to invest in NFTs and work in this sector. Luckily, this is a problem that's being tackled; many women-led NFT projects seek to empower women and encourage greater participation in this space.

Here are five women-led projects that aim to tackle the problem and bridge the gender gap:

World Of Women


This project was launched in July 2021 and has become one of the success stories in the NFT world. Launched for 0.07 ETH, the floor price now exceeds 7 ETH. The collections aim to highlight emerging artists from the globe, give back to women-led organizations, and educate women and other underrepresented minorities in the NFT and Web 3 space. Yam Karkai, a digital illustrator and NFT artist who grew up in Europe and the Middle East, is the project's face. The World of Women NFT consists of 10,000 randomly generated NFTs of various rarities on the Ethereum blockchain. 

Each NFT has an image of a woman with diverse features; the project aims to promote inclusivity and diversity. Some of these highly prized NFTs are owned by the likes of Snoop Dogg and Reese Witherspoon. 

Boss Beauties


Boss Beauties is an NFT collection by My Social Canvas, a social enterprise for over ten years. It aims to provide opportunities to high school and college girls worldwide. According to the Boss Beauties website, the project is a "women-led global initiative that creates opportunities for girls and women through cutting edge collaborations."


Consisting of 10,000 generative artwork, the project launched in September 2021, and sold out within an hour. 5% of the initial mint went towards funding the next generation of leaders, with 5% to launch women in the NFT podcast series. The collection became the first NFTs to be displayed at the New York Stock Exchange and has a floor price above 1.5 ETH. 



Women Rise


Women Rise is a project by the Pakistani-American visual artist Maliha Abidi. Maliha advocates social justice, including gender equality, women's rights, and girls' education. Women Rise is a collection featuring 10000 generative NFTs to build a community on encouraging more women to participate in the NFT and blockchain space. 


Launching in January 2022, the project was a sell-out. 2.5% of sales was given to the Malala Fund, with 5% from royalties going to 'Women Rise' and the 'Activist' club. 7.5% of sales proceedings went to organizations supporting girls' education, mental health in marginalized societies, and gender equality. Maliha Abidi has been featured in publications such as The Guardian, The Rolling Stones, and Forbes. Part of the Women Rise team includes Randi Zukerberg, the sister of Mark Zukerberg.


Fame Lady Squad


Fame Lady Squad launched in July 2021 as the first female-led NFT project. Being the first project of its kind, it received much attention. The 8888 NFTs in the collection sold out and made $1.5 million. it soon became apparent the founders were not female. They were some Russian men claiming to be female! The project was transferred to the community, which created a new artwork and reignited the project. 


It's now a successful community-run project with a merchandise store with activities planned for the Metaverse.. The project aims to provide support and help to women in the Crypto / NFT space. 



Remarkable Women NFT


Remarkable Women NFT is a collection of 6000 NFTs launched in February 2022 by the artist and illustrator Rachel Winter. The sell-out project illustrates women expressing cultural inclusion, fashion, feminism, and self-expression. 10% of the sales were donated to Fund for Women's Equality (FFWE), and 10% of secondary market sales go to the Remarkable Women Impact Fund, a project that supports causes to uplift women. 


The project will feature in-person events for holders, merchandise for use in real life and the Metaverse, and education to help people of all genders learn more about Crypto, Metaverse, NFTs, and Web 3. The projects enable holders to stake their NFTs for a period in return for points that can be redeemed for rewards as part of a loyalty program.



Attaining Crowdfunding For Your Business Through NFTs
March 10, 2022
Attaining Crowdfunding For Your Business Through NFTs

Generative Avatar Projects led the NFT space in 2021 with numerous hugely successful projects. Collections such as CryptoPunks, Bored Ape Yacht Club (BAYC), and Doodles are some of the all-time best-selling NFT projects. Others tried to emulate these projects, with many enjoying a modicum of success.


As time passes, avatar-led undertakings have less impact, but the versatile nature of NFTs ensures other types of campaigns become the trend. 


How Are Crowdfunding And NFTs Connected?


Crowdfunding has become a means to raise capital in the Internet era. It's an alternative way to raise money for businesses away from sources such as borrowing from the bank, business grants, and angel investors. Crowdfunding involves the business person proposing the idea, a group of people willing to invest, and a platform bringing the two parties together to execute the concept.


NFTs have the features to replace crowdfunding and become a better method to raise capital. It eliminates platforms performing the middle man mediator role. With NFTs, there are only two sources involved: the business proposing the idea and the investors willing to buy the NFTs to raise the money required. 


The Changing Nature of NFTs


While NFTs projects evolve from avatars, one part will remain constant. All projects require loyal and committed fans to succeed; the community element continues to be necessary. It's likely projects will evolve to where utility is the main focus and art becomes negligible. In this raising capital example, the business becomes the utility.


Raising Funds Through NFTs


Anyone wishing to start a business could do so through an NFT community, the funding step becomes less difficult. Many lending institutions require people to jump through hoops before offering the finance. Becoming accepted on crowdfunding platforms is no easy task; arduous tests are in place like traditional institutions. 

The Internet has made it easy to build a following. Anyone wanting to start an NFT project can post on Social Media platforms such as Twitter and build a community on Discord. A big enough community with trust in the assignment will lead to the sell-out of the project. 

The Problem With Avatar Based NFTs

The novelty factor of NFTs meant early projects with artwork could succeed. The legendary Cryptopunks project continues to be the number 1 project purely based on art. But there is only so much demand for art; the chance of the investment increasing in price diminishes as more JPG artwork enters the blockchain ecosystem. 

This led to projects seeking to offer metaverse experiences and play-to-earn games utilities. But unfortunately, for the majority of projects, the utility is not ready upon launch. The road maps typically state the project will evolve to offer utilities some months after the launch.

With no firm guarantees, it leads to a lack of confidence from investors. The numerous cash grabs and rug pull further add fuel to the problem. 

How Can A Business Raise Funds Through NFTs? 

Building a solid community on Social Media and Discord and communicating the intentions will gain the investors' trust. Having concrete business plans helps the situation. Various plans can be proposed and implemented to reward investors. Investors could gain a percentage of the profits from the business; all paid through the NFTs. Allocation of discounts is possible for holders.


The smart contract feature of NFTs allows agreements to be programmed with no need for third-party involvement. The holders could even become part of the organization's governance through a decentralized autonomous organization (DAO) setup. 


Why Such A Setup Is An Improvement On Avatar Based NFT Projects?


NFTs are an extension of cryptos, and people buy for investment purposes. Purchases are made in the hope of price increases. Very few invest in NFTs for the love of art and a carefree attitude towards the price. In a business NFT scenario, the utility is the main focal point. The project will need to deliver the utility upon launch. The utility could be up and running on a small scale and the money raised through NFTs allows expansion to occur. 


In this situation, for success, a detailed plan needs to be laid out clearly for the investors to study and analyze. Unlike avatar NFTs, there is no vague notion of a utility launching in the future. This has great use for businesses already in existence. They can raise cash for further expansion. Given the company already enjoys success, it will provide confidence to the investors. 

This kind of scenario will lead to more people taking NFTs seriously. The cartoon avatar nature of NFT often only appeals to young people and teenagers.

Conclusion

NFTs have many uses in the commercial marketplace, and a way to raise capital is one example of utilizing NFTs. It will also provide more investment opportunities for the investors to develop their scope. With time, many businesses will use NFTs in many different capacities. 





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Top Tier Athletes And Their Involvement In NFT World

Top Tier Athletes And Their Involvement In NFT World

Many parents support the idea of their offspring becoming athletes and sports stars. When asking a child about their career aspirations, becoming a sports star would top the list. Though reaching the pinnacle is difficult, it is one of the best careers in the world. The attraction to sports is the players' financial gain and adulation. Anyone who reaches the top of any sport will become financially free. Furthermore, players from the most popular sports are celebrities on par with actors and famous businesspeople.

The vast sums involved in sports are due to the massive interest and demand from the general public. People love sports and are willing to pay enormous money to watch sporting events. Due to the fascination, businesses not involved with sports pay massive advertising fees to become associated with the sport. There are many sports, from golf, martial arts, cycling, and racket sports to track and field events. It is an endless list.

However, some sports have better earning potential than others. Sports such as soccer, football, basketball, golf, and tennis are some lucrative sporting activities. Anyone who reaches the pinnacle in these activities will easily earn millions of dollars. There are few sports stars whose fortunes run into billions. Earnings are not limited to the salary received from the clubs. Top sports stars can accumulate wealth through endorsements, sponsorship deals, and payments from their clubs. The massive earnings are due to the player's skill set combined with their popularity. A famous, well-loved star will command the highest salaries.

Investment Options For Sport Stars

Like all wealthy people, sports stars invest their income; they use their finance to buy more wealth. It makes zero sense for money to sit idle in bank accounts. Investments take all kinds of forms. From starting their own business, investing in other companies to involvement in financial markets are some of the popular forms of investments. Cryptocurrencies and their associated technologies have become mainstream in the last few years. The portfolio of many wealthy people, including sports stars, usually has some investment in this arena.

Investing In NFTs

Non Fungible Tokens (NFTs) are one way to invest in cryptocurrency technologies. This field has attracted many sports stars. Some famous sports stars who hold NFTs include Stephen Curry, Serena Williams, Shaquille O'Neal, and Neymar Jr. These are just a few of the hundreds of sports stars who have become involved with NFTs.

NFTs, with their cartoon art representation, appear fun and appeal to the younger generation. Given that the sports star demographic is of the lower age bracket, it makes perfect sense for these people to invest in NFTs. Owning NFTs can help market sports stars and their brands. Becoming associated with a popular NFT collection will increase the media coverage received. For example, if an athlete buys a blue-chip NFT such as the Board Ape Yacht Club, the news will be seen on all major outlets and social media channels. This is a win-win situation for both the project and the athlete.

The more an athlete is featured in the popular media, the more it enhances their prominence. It allows them to demand more outstanding salaries and endorsements. The involvement of top-tier athletes will help drive up the price of the NFT, a good situation for the NFT project. Additionally, NFTs are an investment opportunity. Though buying NFTs is highly speculative, there is an excellent chance that blue-chip projects will see a price rise. Top-tier NFT projects such as BAYC and Azuki continue to see a price increase.

NFTs can help well-known athletes connect with their fans. The trend is for athletes to buy NFTs from significant projects to date. There will be a more significant number of athletes who will release their own NFT collections. It offers the athlete a way to bond with fans in new and innovative ways.

Holders gain the opportunity to meet the star or receive merchandise. This helps to solidify the relationship; it will lead the fans to become even more interested in the athlete's brand and helps to foster a community of fans in ways never seen before. There is also a financial benefit for the fans. Owning the NFTs of a sports star, the fan can sell these assets. Previously the relationship has been a one-way street; the athlete benefited from fans without much reciprocity.

If the perceived value of the star is on the rise, the price of the NFT will increase. It offers the opportunity for the holder to sell their NFTs for a profit.  NFTs open up all manner of possibilities in the world of sports. Sporting clubs can sell NFTs, which will offer their fans the opportunity to gain merchandise, special ticket allocation, or vote on club governance. NFTs are relatively novel, but there is no doubt that this is a field that opens up opportunities never seen before in the world of sports.

 

Apr 9, 2022
Kate
The Importance Of The Founder In NFT Projects

The Importance Of The Founder In NFT Projects

People who've followed NFTs for some time are aware of these essential considerations when buying NFTs.  Many new members of the NFT community overlook this critical aspect.

Many newbies buy NFTs without much consideration. The usual pattern is for people to hear about NFTs, find the NFT community on Social Media platforms such as Twitter, and become part of the Discord servers of various projects.

A busy server and quality artwork ensure the newbie becomes involved in the community. It leads to the person minting the NFT on launch.

Following the mint, it's common to see the price of the NFT fall in value. After a few months, the founders neglect the project, and the holders find themselves with an NFT with little value.

Since this neglect has been the standard pattern seen throughout 2021, most NFTs on the secondary market are worth less than the price paid on launch.

There have been numerous cash grabs. The founders make six figures from the NFT project, but the investors have a losing asset.

The success stories in the NFT space have received praise. For example, the Bored Ape Yacht Club (BAYC) is admired throughout the NFT community, and any NFT stories in the mainstream media feature the BAYC regularly.

For every successful project, there are far more failures.


Mistakes Made By More Experienced NFT Buyers.

After spending time in the NFT community, people become aware of the requirements of a good project. They commonly look for the following characteristics:

Doxxed Team. The team mustn't be anonymous. Anonymous groups are more prone to carry out rug pulls (where the founders close the project after launch). Investors have no idea of the identity of the founders. As a result, the groups can quickly abandon the project and scam the investors.

Great Community. There must be a sizable community behind the NFT project. People look at Social Media and Discord profiles to gauge the size of the community. Without a community, there is no one to buy the NFTs.

Good Artwork. Essential to ensure the artwork is high quality and in line with the current trends. For example, there is a great deal of admiration for the artwork by Doodles and Invisible Friends NFT projects.

Utilities. Projects need more than artwork to become a success. The only exception is if the NFTs are from an established artist such as Beeple, Banksy, or another artist with a big following in the traditional art world.

Projects without a well-established artist need to provide utilities in the form of Play To Earn games, events, staking possibilities, and more.

People seeking these factors in projects are better positioned than newbies. But many projects satisfying these conditions still fail to succeed, especially in this current climate where the NFT space is experiencing a bear market.


The Importance Of The Founder

The most critical factor in a project is the founder. Many investors entertain projects because the founder is well known. They could be a celebrity or an industry leader.

Unfortunately, many of these projects flounder in the long term. Shortly after mint, there is a pump in price. But a few months after the launch, the value has become less than the mint price.

The founders are not highly active in the project; they make no effort to immerse themselves in the community.

It leads people to conclude (probably correctly) the founders are not interested in the project. The community loses faith, sells their NFTs, and projects end up in the backwaters of the secondary market.

A successful project is one where the founder engages with the community. They should be active before and after the launch. Making themselves involved in the conversations on Discord and Ask Me Anything (AMA) or Twitter Space shows a genuine interest in the project.

An example of a successful project is VeeFriends by Gary Vee. The founder is always available. He is constantly talking about his projects on Social Media and does not go missing in action.

 

Wrapping Up

The most important consideration for any NFT collection is the founder, motives, and project vision.

Unfortunately, the NFT world has seen many cash grabs. The devs and the founders fail to take much interest following the launch.

The reality is that unless the NFT collection is by a genuine, highly established artist, the project starts after the launch.

The easy part is the stage up to the launch; it's the segment where the founders are raising capital to realize a vision. Making their promises become a reality involves hard work.

To date, in the NFT space, many founders are fond of the idea of raising capital. But dislike the effort to complete the project and make the utilities and the roadmap a reality.

Many experienced investors in the NFT community understand the situation and no longer mint NFTs easily. This is a contrasting situation to 2021, where people readily bought NFTs.

Perhaps this explains the current bear trend in the NFT world; sales volumes are significantly lower than the record-breaking numbers a few months ago.

For the investor, the best approach is to take a great deal of interest in the founder. Presenting evidence of interest by the founder ensures confidence in the community.

The involvement of a famous name does not guarantee long-term success.

 

Mar 31, 2022
Bill
Common NFT Scams: Identified

Common NFT Scams: Identified

Scams exist in many areas of life, defined as fraudulently obtaining money or goods from unsuspecting victims. 

The Internet is hugely beneficial for society and helps improve many people's lives. But it has led to criminals using it to defraud people—from phishing and fake shopping websites to dating scams. 

Cryptocurrencies use the Internet and are not exempt from scams. The anonymous nature of cryptocurrencies has made things easier for fraudsters. 

NFTs are an extension of cryptocurrencies and are an arena with frauds targeting newbies and the uninformed. Since this is a relatively new technology, most people have likely been victims of one form of scam or another.

What are some of the common NFT scams?

Rug Pulls

After a project launch, the founders exit the project with investors' funds. The founders close the assets associated with the project, such as the Discord server and Twitter account, and leave the scene. With the founders no longer involved and little trace of the project, the price of the NFTs decreases until it becomes worthless. The investors possess nothing more than NFT JPG images on the blockchain. 

The NFT space has been rife with these scams throughout 2021. As people become aware, these deceptions are becoming less common.

Anonymous founders carry out rug pulls; people have no idea of the real identity. Given the anonymity and lack of traceability with crypto wallets, it's a straightforward scam to perpetuate.

Cash Grabs 

This is rife in the NFT space. The founders of the project promise various developments for the project. 

After the launch, they fail to implement these promises. Over time, the value of the NFTs decreases, and the investors are left holding the bag. 

Nearly every NFT investor has been a victim of such activities. Such schemes are also known as a slow rug; the founders leave the project slowly. 

These schemes are difficult to classify as a fraud; the founders are in a position to kick their promises into the long grass. And many often come up with all manner of excuses why developments fail to progress. 

Pump And Dump 

This is where an individual or a group of people team up to buy large quantities of the cheapest NFTs in the collection (buying the floor price). 

They drive up the collection price, also known as "sweeping the floor" or "wash trading." After a significant price increase, the NFTs are sold for a profit, and the culprits exit the market. The value of the NFTs decreases, people are left with NFTs worth less than the price paid. 

The project founders are known to engage in such practices to drive up the price of their collection.

Project Impersonation

Fraudsters try to mimic real projects by creating websites and social media profiles with a similar appearance to the actual project. 

They aim to lure unsuspecting victims to a website and mint fake NFTs. The victim connects their wallet to mint an NFT, which turns out to be an empty file. 

Victims are targeted through direct messages or posting links in the comment section of Social Media platforms.

The problem has become rampant: fraudsters routinely hijack the real Discord server of a project, disabling the power of admins and moderators and placing links to direct members to a fake minting website. 

Customer Support Scams

This is a problem commonly seen on Discord and Telegram. Scammers contact through direct messages offering to help people mint NFTs or provide bonus airdrops.

As a customer service representative, the scammer tries to obtain wallet details such as passwords and the seed phrase. Using the information, fraudsters drain the funds from the wallet.

The problem is that NFT projects warn members not to engage in direct message conversations. Official members of staff have ceased contact with members directly through direct messages. 

Experienced people will not fall victim to such scams; newbies are the intended targets. 

Intellectual Property Theft And Fake Collections

There are projects known to take the artwork from talented artists and use it for their collection. Without agreements in place, this is a form of theft.

Projects using artwork from an artist without permission are a theme in the NFT community. 

On discovery, the reputation falls, and the value of the NFTs decline in price; it becomes a loss-making investment.

Some individuals take artwork from upcoming projects, load it to marketplaces such as Open Sea and aim to impersonate the actual project.

Buyers of these NFTs become victims of a scam.

Conclusion

Scams are common because the NFT market is new, with many new people entering the space. It allows fraudsters to exploit inexperience and vulnerabilities.

The best approach for a newbie is spending time in the NFT community, networking with others on platforms such as Discord, and becoming fully aware of the technology before major investment sprees.

Mar 24, 2022
Kate
Yuga Labs & Bored Ape Yacht Club (BAYC) Launch ApeCoin Tokens

Yuga Labs & Bored Ape Yacht Club (BAYC) Launch ApeCoin Tokens

Bored Ape Yacht Club (BAYC) is the most iconic NFT collection; it's set the standard for others to follow. The nearest rival CryptoPunks, based on nothing more than artwork, was taken over by BAYC's creators, Yuga Labs, in March 2022. This acquisition has created the biggest juggernaut in the NFT world; no other project comes close in size.

BAYC 's success depends on its ability to evolve, pivot, and provide value to its holders. While many projects offer artwork and no more, BAYC has significantly contributed to the NFT world. They airdropped NFTs from other projects (such as Bored Ape Mutant Club and Bored Ape Kennel Club) to BAYC NFT owners, provided in-person events, and developed online games for its members. Yuga Labs allows the holders to use the NFT they own to create and sell merchandise.

 What is ApeCoin?

As part of this ability to grow, in March, Yuga Labs collaborated with the collective named ApeCoin DAO to drop ApeCoin ($APE) token.

ApeCoin acts as a digital currency in the same way as many other cryptocurrencies. People will be able to spend ApeCoins on upcoming products and services BAYC will offer, including the Play To Earn game launching in 2022. The hope is that ApeCoin may evolve beyond the BAYC ecosystem in the future.

There is a difference between Apecoin and cryptocurrencies such as Bitcoin, Ethereum, and Solana. Bitcoin, Ethereum, and Solana are native coins derived from their perspective blockchain. Apecoin does not have its blockchain and resides on the Ethereum mainnet; it's considered a token rather than a coin.

ApeCoins are not too dissimilar to Axie Infinity Shards (AXS), the native governance token of the Axie Infinity network. Axie Infinity players can buy, sell and trade using Axie Infinity Shards.


Distribution

A total of 1 billion ApeCoins were available; the allocation was as follows:

15% to the holders of Bored Ape Yacht Club and Bored Ape Mutant Club holders,

15% to Yuga Labs,

14% to the partners that helped launch the tokens,

8% to Yuga Labs founders,

1% to charitable events,

47% to ApeCoin DAO

ApeCoin DAO

ApeCoin DAO is part of the Ape Foundation, the governance behind the token. They have the power to manage the everyday running, project management, and bookkeeping of the token system. Holders of the ApeCoins and the DAO can dictate the ecosystem's future, thus making ApeCoin a decentralized system.

 ApeCoin DAO consists of leaders from the Social Media, gaming, and crypto space. These people include Alexis Ohanian (from Reddit), Amy Wu (from FTX), Dean Steinbeck (from Horizen Labs), Maaria Bajwa (from Sound Ventures), and Yat Siu (from Animoca Brands).

The BAYC project and Yuga Labs are separate entities from the ApeCoin DAO. If BAYC and Yuga Labs were closely connected, the project would come under the scrutiny of The Securities and Exchange Council of the United States. The Securities and Exchange Council is the government organization responsible for regulating Securities and protecting investors. To date, the organization has not focussed on NFT projects.

Launch 

On launch, the price of ApeCoins started at almost $40 per token. During the day, the token fell to around $6 as people who received free tokens sold their share. A few days into the launch, the price of the ApeCoin sits at around $11. The vast market cap size has meant that ApeCoin is in the top 50 of all cryptocurrencies.

The token was available on all major exchanges such as Coinbase, Binance, KuCoin, and FTX. It's unusual for new tokens to be widely known, but the popularity of the BAYC meant exchanges readily accepted ApeCoin onto their platform.

Original holders of BAYC NFTs were given 10,094 tokens for each NFT they held. This translates to nearly $400k at the price height and $60k near the bottom.

ApeCoins show that the Bored Ape Yacht Club project continually provides the holders with utilities. These utilities translate into social and financial gain. Unfortunately, the NFT space is riddled with scams and rug pulls. But Yuga Labs have set the blueprint for what makes a fantastic NFT project, an aspiration for other projects to follow.

No one can predict the price movement of digital currencies; there are no guarantees of price increases. The ecosystem created by Yuga Labs is continually expanding rapidly; it's probably a good bet to suggest ApeCoins are potentially a significant investment.

As always, do your own research before investing.

 

 

 

 

Mar 23, 2022
Dave