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NFT Marketing Explained
March 6, 2022
NFT Marketing Explained

Marketing is an essential component to launching a successful NFT project. A project could have great artwork, a secure smart contract, and a professional front-end website to facilitate minting. Still, the project will fail to reach its potential without great marketing. So how can a project go about carrying out a successful marketing operation?

 

Build And Grow A Community  

 

For people to buy the NFT, confidence in the project is required. Trust is attained by building a loyal community of fans. Discord is currently the favored method to build a community. The app allows conversations in text and voice and features such as Ask Me Anything.

 

People are encouraged to join the community through Social media platforms or shilling other Discord servers with an NFT presence. Enticements such as the opportunity to enter the whitelist or prize giveaways are common.

 

Participation in the community is incentivized through chat contests. People with the highest engagement rates are awarded prizes in cryptocurrency or NFTs. Invite competitions are run to increase the size of the community.

 

An active Discord community encourages others to join and participate; visitors seeing a vibrant community will become members. A thriving community also encourages people to buy NFTs. Experienced investors in the market will only purchase from active communities. The Discord server allows the project to relay information and gain the members' trust. A vast volume of purchases will come from the community; building a solid, engaging community is essential.

 

Use Social Media

 

People discover projects through Social Media, with Twitter the most popular medium for crypto and NFT projects. It is a platform where people assess the strength and weaknesses of projects. One way for people to evaluate a project is to examine the following size and content engagement. This evaluation facilitates judgment on whether there is a strong interest in the project.

From an investment perspective, there needs to be demand for the NFTs for price rises. The foundation of investing is buying low and selling at a higher price.

 

 

A following is built on Social Media platforms like Twitter by posting quality content that suits the app. For example, written content that reads well with well-spaced, easy-to-read information is essential on Twitter. On Instagram, great images and video reels are necessary to make the page look professional.

A project often builds its following through organic engagement methods such as commenting on other accounts coupled with giveaways. People love freebies and will join Social Media accounts for the opportunity to win.

 

Social media is used to direct people to the Discord server to contribute to community development. Twitter Space is a valuable tool to deliver more information on the project and how it'll proceed.

 

Social Media Influencers are commonly employed to advertise the project. Influencers have a vast following; they can inform their followers about the project and spread awareness.

 

Collaborations with other projects are a great idea and are mutually beneficial; it facilitates followers to discover new projects.

 

There are numerous Social Media platforms. Twitter should be the primary focus as it has a significant NFT presence. Other platforms such as Telegram, Instagram, and TikTok are worth considering after achieving a big Twitter following.

 

 

Other Advertising Methods.

 

There are numerous websites and blogs to advertise the project; some are paid, others are free. Press releases and websites such as mediums allow content marketing to take place.

 

Content marketing is an excellent method to bring users to the company website. Through blog posts, traction and traffic from search engines are directed to the Discord server.

 

Advertising on the Metaverse is also an option. Metaverses such as Cryptovoxels and Decentraland are popular places for NFT fans. Advertising here will help to attract an audience heavily into NFTs.

 

Final Thoughts

 

Building an extensive fan base before the launch will help to ensure the project sells out. A sold-out project has the momentum to increase strength and become more comprehensive. A collection that performs poorly on launch will attract negativity from the existing community, drive down the price of the NFT, and become harder for project growth. It'll be challenging to attract new members as people will see the project as less than successful.

Utility Considerations For NFT Projects.
March 6, 2022
Utility Considerations For NFT Projects.

 Many NFT collections offer good artwork, with projects viewing it as an important component. Only a few NFT projects are entirely art-based; most provide other benefits in the form of utilities.


Discord Channels.

 

All major NFT projects have a community on Discord accessible to anyone. Discord has become the most prominent app for community building and information sharing in the crypto and NFT space.

 

Some NFT projects have special channels only available to the holders of the NFT. These channels are managed by the collab.land bot, allowing a members-only community to provide additional benefits. Some of these are to facilitate free airdrops, provide specific project news, or allow holders to vote on project governance.

 

NFT projects could offer educational content for users in the form of investing, art classes, and special appearances by industry leaders.

 

Access To Events.

 

Some projects have access to networking events, parties, or seminars as a holder. Top projects like Bored Ape Yacht Club and VeeFriends have real-life meetups for holders. There are VeeFriends NFTs that allow in-person access and mentorship from Gary Vee.

 

Famous and well-known people can launch NFTs where the holder gains signed merchandise or attend events with the founder.

 

Physical Items.

 

Some NFTs by artists allow people to obtain the physical version of the NFT. Flipkick is a company that works with artists to deliver NFTs linked to physical art. This space will evolve as NFTs become popular and artists realize the potential of NFTs and blockchains.

 

Some projects have physical merchandise associated with the NFTs. The infamous Bored Ape Yacht Club sells merchandise and allows NFT owners the right to create sellable merchandise with the NFT they own.

 

 

 

Airdrops.

 

It's pretty standard for NFT projects to give holders additional NFTs and other rewards.

 

Bored Ape Yacht Club (BAYC)airdropped Bored Ape Kennel Club and Bored Ape Mutant Club NFT to its holders; these two new projects became valuable as the BAYC project grew.

 

The top-selling CryptoPunks NFTs were free on launch; anyone holding an Ethereum wallet could claim an NFT.

 

NFTs are closely linked to Blockchains as this technology enables NFTs to exist. Numerous blockchain platforms give away NFTs as airdrops. For example, Binance Smart Chain, a strong competitor to the Ethereum blockchain, has airdropped tokens.

 

Breeding

 

Play-to-earn (P2E) game Axie Infinity facilitates the players to breed new in-game characters. In addition to using the characters in the game, they can be sold or rented, offering the holders the potential to earn additional income. Some non-P2E NFT projects allow the holders to breed and the creation of new NFTs.

 

Another project that allows breeding is CyberKongz to create BabyKongz. In addition to breeding, CyberKongz contains Kongz Island, a multi-estate concrete jungle built on Sandbox, and its own $banana token, which has contributed to CyberKongz becoming a quality NFT project.

 

 

Fractional Ownership

 

Fractional Ownership of NFTs allows people to purchase a fraction of an NFT. An art NFT by a well-known artist could be split into many components and available for many people to buy shares.

 

Pak's NFT Artwork 'The Merge' is a well-known example. The NFT sold for over $90 million; it was split into over 312,000 units to ensure many people could buy a stake in the project.

 

Taking such an approach will ensure the NFT is easier to sell. An expensive NFT is limited to wealthy buyers; fractionation provides greater market access and an easier sale process in the future.

 

Staking

 

Financial gains are achieved with many NFT projects when the NFT is sold. Staking allows the NFT to be locked away into the project or another ecosystem to earn a passive income. Such projects are likely to have a greater appeal to investors.

 

Metaverse Activity

 

The Metaverse is a trending subject; it will have a significant impact in the future. Offering activities involving the Metaverse is a utility that adds value. Decentraland and SandBox provide Metaverse opportunities that have contributed to their success. Projects providing artwork NFTs could present a Metaverse experience where individuals can view the art in a Metaverse-based museum.

 

Conclusion.

 

In the current climate, utilities are an essential part of success. It's unnecessary to have an endless list of utilities, but the greater the number, the more the investors will benefit.

 

For the project to reach a favorable outcome and give the market confidence, it should have the utilities ready and available on launch. Such scenarios eliminate negative sentiments often seen following the launch.

 


The Low-down On Obtaining NFTs For Free
March 3, 2022
The Low-down On Obtaining NFTs For Free

Top-quality NFTs are not an inexpensive item. On the Ethereum blockchain, paying as much as $500 for a new NFT is not out of the norm. Some NFTs cost even more. This payment does include the transaction (gas) fees which run into hundreds of dollars. Cheap NFTs are available on the Polygon network, but individuals dabbling with NFTs rather than professional projects are the source of these NFTs. The likelihood of such NFTs becoming valuable is low. 


Where To Find Free NFTs?


For those without the funds to mint NFTs, there are ways to obtain them for free. 


Marketing is necessary to launch all NFT projects. The exception is NFTs released by a well-known name or corporation. The value held by the cooperation is sufficient for viral marketing to occur. For example, if a brand such as Prada or Coca-Cola were to launch an NFT project, the news would spread fast without significant effort.


Normal individuals usually run NFT projects, and a successful launch requires marketing effort. The marketing phase is usually a few weeks to a few months, during which time there are opportunities to win NFTs. Offering prizes and giveaways are the most significant way for projects to advertise, gain exposure and grow the community.


Promotion and marketing take place on Twitter, Discord, and Instagram. Many projects start by offering the chance to win whitelist spots. The winners can mint before others but still need to pay for the NFT. Occasionally the whitelisted people obtain the NFT at a discounted price. 


Twitter is the best place to discover NFT giveaways. Searching under #NFTGiveaways will show projects using giveaways. The more popular the project, the fewer opportunities to win an NFT; there is no need to use enticements. 


Twitter also has promoters not related to projects doing giveaways. They are running giveaways to grow the account and increase the following. Some well-off individuals run contests to give back to the community.


The usual requirement to enter is to retweet, like the tweet, and in the comment section, add several friends who may have an interest in NFTs. Some also ask people to join their Discord server. 


The Discord servers of NFT projects also run giveaways. These run as chat contests; members who chat the most are awarded NFTs as a prize. There are other giveaways in invite contests; members who invite the most people to the server receive NFTs. Some try to cross-collaborate with other projects; the Discord members must join another server to enter the giveaway. Fanart contests are also widely used by more significant projects. It's worth joining numerous Discord servers to discover giveaways. 


Note Of Caution. 


NFT giveaways are very common on Twitter, but not all are real. Promoters run many fake giveaways, which cloud the scene. 


They offer the chance to win an NFT, but the prize will not materialize. Fake giveaways are apparent when winners are not announced in the comments. It's best to go through the promoter's Twitter feed and look at previous giveaways. These promoters seek retweets to gain exposure and followers; the fake giveaways are a means to grow the account which can be monetized later.


The best approach is to identify people with real giveaways and consistently enter the contests offered by these accounts. 


Scams are less likely with giveaways run by projects; these contests are generally honest. The exception is if the project is unsuccessful. It fails to take off with a low mint, the owners become demoralized, and they fail to award the prize. And the chances are people will not want to gain an NFT from a failed project! Many such projects have become abandoned by the founders.


Free NFTs Are Not Free! 


Thousands of others want to win NFTs; the competition is stiff. Many entries are required to win a giveaway on Twitter; it's a time-consuming affair. People are not paying for the NFTs monetarily; compensation takes an enormous amount of time. 


In Discord chat and invite contests, a vast portion of time is required to reach the top positions to win prizes, the same as Twitter giveaways.  


It may be better to seek employment and buy the NFT. But everybody's situation is different. For instance, in low to middle-income countries, winning an NFT and the value associated with it is worth more than the hours spent working. 


Free Mints.


A strategy used by collections with limited marketing budgets is to offer free NFTs. Most have little presence on Twitter or Discord, but people discover the project and mint the NFTs for free. 


The project takes off, and a Twitter and Discord community springs up quickly. NFTs, increase value, leaving the lucky ones with a money-making asset. Within days the initial hype dies, and with little to no road map, the price of the NFT falls. These are a good opportunity for a quick flip.


Some of these collections advertise on blogs and websites. Additionally, they can be found by searching Twitter and Discord communities that discuss NFTs.




NFT Staking And How NFT Owners Can Benefit
March 3, 2022
NFT Staking And How NFT Owners Can Benefit

Blockchains which started as digital ledgers for record-keeping digital currency transactions are becoming used in other settings. Currently, blockchains show significance in decentralized finance and NFTs. There is also the rise of staking NFTs, a combination of NFTs with finance.


The Evolution of NFTs From JPG Artwork


NFTs have become a common feature in the crypto world; anyone familiar with crypto will likely understand the technology and the inner workings behind NFTs. Many NFT projects are launched daily on various blockchains such as Ethereum, Solana, Polygon, etc. 


But the novelty factor behind NFT artwork is now redundant. In the early to the middle part of 2021, a collection with lovely generative artwork would suffice for a successful NFT project. Now an NFT collection with great artwork as the main selling point will flop. The market has decided that JPG artwork stored on the blockchain has little value. There is endless art flowing in the blockchain with little appetite to become worth thousands. Artwork by a well-known artist or celebrity is the exception; such a collection will sell quickly. 


This has led to projects releasing utilities as a significant part of the road map. Utilities come in many forms, one of which is the member communities. The hugely successful VeeFriends offer a community, holders can access seminars and events by Gary Vee. Bored Ape Yacht Club (BAYC) is a social club with parties and events held for members and other benefits. Or the Nike-owned RTFKT enables holders to access the physical version of the NFT represented as sneakers. Real-world utilities combined with confidence from the market ensure the NFTs hold value.


The Rise Of NFT Staking


There are two main reasons why people purchase NFTs. Firstly the novelty factor, NFTs are a recent phenomenon; people are keen to buy a new product. The second reason is the investment possibilities. People purchase NFTs hoping the asset price goes up, leading to profits. 


The majority of NFT projects are flops. It is not unusual for NFT projects to sell out or mint a reasonable quantity of NFTs within the collection. But following the launch, the value of the asset falls. It's a good situation for the founders; the initial mint can quickly raise six figures or as much as a million dollars within a few short months. The investor has an NFT worth less than the initial price. 


Investors can mitigate such situations by researching projects that offer staking opportunities. Staking is a common feature in the crypto and blockchain ecosystems that use the "proof of stake methodology." For carrying out transactions, adding blocks to the chain, and validation, the participants are awarded native tokens of the blockchain. The participants must stake Crypto coins; the more significant the stake, the greater the likelihood of becoming chosen. The holders can pool together to create a node system to carry out the necessary work. This system offers a way to earn a passive income and ensure the coins are used. 


It has become possible to utilize NFTs for staking purposes. The holders offer the NFT to the project or external sources; it's held in return for staking rewards. 


The most prominent proponent of staking directly into projects is NFT play-to-earn (P2E) games. One of these is Axie Infinity. Players purchase the Axie Infinity NFT; it enables them to participate and earn in-game assets that generate a profit. Players can stake in the governance token Axie Infinity Shards ($AXS), giving yields as much as 80% annual percentage rate (APR). Another P2E game is Splinterlands, where holders of the native token have access to rewards, governance of the game's DAO, and other special offers.


External platforms allow NFTs to work with Decentralized Finance (DiFi) to enable staking. The NFTs are locked away in return for a yield. Platforms that facilitate staking include Kira Network and NFTX. Kira Network is a blockchain protocol that enables NFT holders to stake assets in return for tokens. NFTX has been explicitly created for NFTs to generate liquidity without selling NFTs. Holders can stake their NFT in return for NFTX tokens which act in the same manner as altcoins.


Conclusion


Staking NFTs on external platforms is a new phenomenon; the infrastructural foundations are taking shape. It has a great deal of volatility as a new protocol but will evolve. NFT projects can succeed by offering broader investment possibilities within the road map, and staking is one way to achieve that.


Note: This is not financial advice; everyone should research before investing in NFTs or other assets.


The Alternative Benefits Of NFTs
March 2, 2022
The Alternative Benefits Of NFTs

NFTs hit the headlines in 2021. In the early part of the year, Jack Dorsey, the CEO of Twitter, sold his first-ever tweet as an NFT for over $2.9 million. The digital artist Beeple sold an NFT collage for around $69 million, and a whole host of others sold their NFTs for fees well into six figures and beyond.

 

The term 'NFT' was named world of the year by Collins Dictionary and many people jumped into the craze that's NFTs; they could see the enormous potential of NFTs.

 

Much of the positives behind NFTs are well documented. These include proof of ownership, authenticity, transferability, and security. But what are some other advantages?

 

Good For The Economy

 

NFTs have spawned a new industry. For an NFT project to go to the market, it requires people to carry out tasks ranging from creating the artwork, developers to deploy the NFTs onto the blockchain, and marketing staff to execute the plan to sell the collection. All these tasks enable people to earn money plowed back into the economy.

 

People do not need much experience to become involved in this new industry. Some established industries may seek years of experience, but such people do not exist in the NFT space. This easy-entry enables people with a small exposure to NFTs to leverage their existing skills and take up well-paid roles.

 

People with an entrepreneurial ethos can start up businesses involving NFTs. They can begin NFT projects, develop technology to enhance the ever-evolving space, and create marketplaces.

 

Good For Business.

 

NFTs have seen many billion-dollar corporations enter the NFT space. They range from Adidas, Samsung, Coca-Cola, Gucci, and many more, opening up another avenue to conduct business. Until now, the only mode of operation has been selling physical goods online and offline.

 

NFTs allow these established organizations to leverage their current popularity to sell digital assets and develop Metaverse-related activities to increase their offering. Organizations like Gucci create Metaverses where people can enter, enjoy a virtual reality experience, and purchase items for their virtual world. It's possible to buy gadgets, furniture, clothing, vehicles, and much more. What is available in the real world will become available to purchase for use in virtual space.

 

NFT and blockchain technology opens up marketing opportunities. Giving away NFTs can help gain new customers, add customer loyalty, and drive new marketing opportunities. It enables new products and enhancements launches. For instance, hotels can offer loyalty schemes for people holding their NFTs.

 

Good For Investors

 

NFTs have offered another avenue for investors. The emergence of NFTs has seen people buying NFTs as investment possibilities in the hope of increasing in price. Many traders enter the space hoping for quick flips for huge returns. While there is no guarantee of NFTs going up in price, there are many success stories. Top projects such as Azuki, Doodles, and World Of Women have exceeded their initial mint price. Anyone investing in such projects has seen a significant return on their initial investment. These stories have led people to believe NFTs are the modern gold rush. The evolution of NFTs is fast; what was on-trend a few months ago becomes no longer desired. It's best to stay tuned to the latest news.

 

Investing in NFTs aside, the technology behind NFTs opens the door to other investment opportunities. Organizations leading the way in the NFT world have sound potential. Companies developing the Metaverse, NFT marketplaces, and crypto coins used to purchase NFTs are excellent bets. For example, Matic, the native tokens of Polygon, has gone up in price. From a few cents at the start of the year to almost $3 by the end of 2021. Mana, the token behind Decentraland, which develops virtual land, has seen significant increases in the last five months.

 

Note that there are no guarantees in any investment, and people should always do their research before investing.

 

Conclusion

 

NFTs are revolutionizing the world. The Internet in Web 1 and Web 2 changed people's communication and spending habits. NFTs are the Web 3 version of the Internet; it's likely to have a more significant effect than previous versions. NFTs and blockchain technology are closely intertwined and open the door for positive financial and societal change. The world is likely to see more benefits as the months pass by.

 


The Environmental Effect Of NFTs
March 2, 2022
The Environmental Effect Of NFTs

The COVID-19 pandemic has seen an increasing number of people turn to technology for work and recreational pursuits. It has led to the crypto, blockchain, and NFT technologies experiencing an uplift. A few years ago, blockchain technology was not the norm, and the number of transactions did not match the number seen today. As blockchain technology becomes increasingly popular, environmental effects are becoming a consideration.

 

Blockchain And How Is It Related to NFTs?

 

The blockchain is a digital ledger of transactions duplicated and stored over a network of computers (called nodes) in the blockchain system. It allows recording information and data that is impossible to change prevents hacks and manipulation. Every time a new transaction occurs, the data registers to every participant's ledger.

 

The ability to store digital assets on the blockchain is the appeal of NFTs. NFTs are unique; there's only one version in existence with the possibility of proving ownership. It's feasible to record art, music, video games, and many other things.

 

Why Does The Blockchain and NFTs Cause Environmental Concerns?

 

Creating the artwork or the pieces of music or video game does not, depending on the asset, consume a great deal of energy. However, carrying out transactions on the blockchain uses enormous amounts of energy.

 

Bitcoin set the motion for blockchain technology to emerge; it's the oldest blockchain in use. Bitcoin is a database of accounts with digital currency stored in each one. But NFT transactions are not feasible through Bitcoin.

 

Ethereum is an evolution of Bitcoin and is more sophisticated with more outstanding capabilities. One of these features of Ethereum is "Smart Contracts," which enables an agreement or contract to take place between the buyer and the seller to allow a change of ownership of NFTs.

 

The likes of Bitcoin and Ethereum use 'proof-of-work' (POW) to complete transactions. With POW, the computers (nodes) in the system attempt to complete a complex mathematical problem. Proof of Work prevents DDoS attacks, spam, and other fraudulent activities. Hackers and actors with ill-intention do not have the computing power to hijack the blockchain. Many nodes carry out POW per transaction, but only one node is  the "winner." All the other nodes have wasted their energy. Additionally, the nodes must communicate to validate the transaction, further adding the power usage.

 

Minting an NFT on the Ethereum blockchain can use the same energy as a US household in 9 days. To purchase an NFT, it is not unusual for the transaction fee to amount to some hundreds of dollars. Energy usage is not limited to the initial minting. Further transactions such as listing the NFT and selling on the secondary market also consume energy.

 

 

The Solution To The Environmental Concerns

 

While there are legitimate concerns about energy usage, there are answers to these questions. Ethereum blockchain accounted for over 99% of the NFT transactions by the end of 2021. It is currently moving away from the 'proof of work' concept to a more efficient 'proof-of-stake system.' ETH 2 will roll out in 2022.

 

'Proof-of-stake system' allows cryptocurrency owners to stake coins in exchange for checking transactions and adding valid transactions to the blockchain. Owners create their validator computer system (nodes) and stake coins to participate. Completion validates the trades to ensure accuracy. Unlike 'proof of work,' endless nodes are not carrying out 'wasted' work, and as a result, energy efficiency increases. It's thought the 'proof-of-stake' system could cut down energy use by as much as 99%.

 

Other blockchains do not employ a 'proof-of-work' methodology; these include Cardano, Flow, GoChain, Solana, and Tezos. They utilize the 'proof-of-stake' system and are more efficient. But these blockchains do not enjoy the same popularity as Ethereum.

 

Layer two networks can improve efficiency and cut down energy wastage. Polygon is a layer two network that works with Ethereum. On Polygon, the transactions are fast and use less energy with lower transaction fees. Such techniques could be adopted until more environmentally friendly solutions become common.

 

A further solution is for blockchains to use renewable energy sources such as solar, wind, and hydroelectric. These energy sources will not run out, are more environmentally friendly, and do not negatively impact public health.

 

Conclusion

 

In recent times the environmental effects of NFTs have been highlighted, leading to people questioning the validity of NFTs. But some technologies alleviate the situation, and a more environmentally friendly solution will become the norm with time.

 


The Advantages And Disadvantages of Running An NFT Project On Ethereum MainNet Vs Layer 2 Solutions
February 28, 2022
The Advantages And Disadvantages of Running An NFT Project On Ethereum MainNet Vs Layer 2 Solutions

Everyone involved in NFTs is aware of the technology behind them. Blockchains act as the driving force for NFTs; these blockchains are used to store data and verify ownership. Unlike cryptocurrencies, the NFT is unique with no other version, where each coin is the same. Numerous blockchains allow NFT transactions to take place. These include Ethereum, Cardano, Flow, Solana, and Tezos. Ethereum accounted for over 97% of the NFT transactions of all the blockchains by the end of 2021. Layer 2 solutions for Ethereum that support NFTs are available with Immutable X and Polygon.

 

Ethereum Blockchain: Advantages and Disadvantages.

There are numerous reasons why Ethereum accounts for the vast majority of NFT deals. In the short history of cryptocurrencies and blockchains, Ethereum is an early pioneer. It has developed protocols and standards that lead the way. Ethereum is an open-source, decentralized blockchain with innovative contract features to ensure a secure platform. Such capabilities allow the recording of high-accuracy transactions.

 

The popularity and the size of Ethereum have led many developers to work on the platform; its capabilities continue expanding. Many NFT collections utilize Ethereum as the choice of blockchain for NFT project development.

 

But its popularity has led to setbacks and issues. Due to the enormous demand, congestion within the network is an issue causing a high transaction fee (called the gas fee).

 

It's not unknown for the gas fee to cost more than the NFT itself! This issue has led to NFT projects looking at alternative blockchain sources to execute and store digital data. Unless Ethereum can address the problems, its market share will fall in the future.

 

The popularity of the Ethereum blockchain has meant the existence of many secondary marketplaces to cater to Ethereum NFTs. For those running NFT projects, Ethereum opens up more marketplaces to trade and promotion opportunities. There are other costs involved with Ethereum NFTs after the initial purchase. People need to pay gas fees for listing and auction sales on the secondary market.

 

Polygon Network: Advantages and Disadvantages.

Polygon is a side chain secondary network residing above the Ethereum blockchain network - the primary layer. Polygon cannot complete the transaction on its network; it uses bridging to connect to the Ethereum network and use smart contract features. Polygon aims to alleviate and address the issues faced by Ethereum. It's less popular than Ethereum and does not face congestion problems. The secondary network has the infrastructure to ensure

faster and more efficient transactions.

 

The most significant advantage Polygon has over Ethereum is the low gas fees. Transactions occur quickly on Polygon, with no need for the same mining power leading to nominal transaction fees. Less congestion also contributes to lower expenses.

 

Polygon network is less secure than Ethereum. It opens the door for assets to become lost. For the sake of speed, there are fewer checks and balances in place.

 

Ethereum is the second biggest cryptocurrency after Bitcoin, and the coin associated with Polygon (Matic) is in the top 15. New people entering the market are more likely to purchase on the Ethereum blockchain than Polygon as they have a greater familiarity.

 

Purchasing Ethereum NFTs on marketplaces such as OpenSea is not tricky. But to buy Polygon NFTs, extra steps are required to bridge the Ethereum and Polygon network. For people without tech know-how, the process is not straightforward. People concerned about crypto scams going through lengthy processes may discourage participation. There are fewer marketplaces that cater to Polygon NFTs.

 

Conclusion

Ethereum is the premier blockchain for NFT transactions; it's the preferred option for most projects and individuals wishing to buy NFTs. Ethereum is perfect for high-value transactions as there is less likelihood of the NFTs becoming lost in the system.

 

Polygon acting as an intermediary has its use for low-cost NFTs and the budget-conscious. It is a good choice for smaller artists not wishing to pay high gas fees to list their NFTs and people wanting to buy inexpensive NFTs with low transaction fees.

 

The high demand for Ethereum NFTs has created congestion and high gas prices, which has seen the emergence of Polygon. The situation may change with the launch of ETH 2.0, which intends to solve the current problems faced by Ethereum. But the last 18 months have seen Polygon become significant, and the trend is set to continue in the near future.

 



NFT Rarity Traits
February 28, 2022
NFT Rarity Traits

Experienced NFT investors are aware of the qualities that constitute a great project. These include awareness of the founders' identity, the quality of the artwork, the size of the community, trading volume, and the project's utilities. Once a good project is identified, successful traders seek out the rare NFTs in the collection.

What Is Rarity In NFTs?

NFTs are a collection of generative art containing a few hundred to 10000 pieces. The NFTs in a project have a similar appearance, but each has different traits. For example, in the Bored Ape Yacht Club (BAYC) project, there are 10000 NFTs. Though each Ape looks similar, they have different eyes, clothes, fur, hat, mouth. All of which give each NFT a distinctive, unique appearance. Some of these traits are less common and considered rare. Numerous rare traits within a specific NFT increase the overall rarity, ensuring a high value.

In the BAYC collection, the Bored Unshaven Pizza Mouth appears 26 times in the 10000 NFTs; it's a rare trait. In contrast, an Ape with no earring appears 7023 times and is common.

On project launch, it's impossible to see the NFTs and no way of knowing the rarity; buyers are given NFTs at random. Following the launch, it becomes possible to view the NFT and determine the rarity. Typically in a 10000 collection, there'll be a few hundred rare with the remainder common.

For investors, it becomes essential to appreciate the rarity factor. The rarer an NFT, the more valuable the digital asset. There is a massive difference in the sale price of regular NFTs and the rare items in the collection. The normal NFTs are near the floor price (i.e., the cheapest one in the group), while the scarce items are 50 to 100 times the floor piece.

 

Rarity Strategy For Project Owners.

Rarity consideration is not just important for those wishing to buy NFTs; it's essential for people wanting to launch their own NFT project.

Looking at the iconic CryptoPunks project, one reason for the massive success is the concept of rarity. The same principles from trading cards are used, the number of NFTs in the collection is limited, and some NFTs are rarer than others.

A limited number of NFTs combined with rare items within the project excite the collectors; people become more interested. In the CryptoPunks collection, there are a few unique NFTs, considerably more valuable than others. The success of CryptoPunks has laid a model for NFT projects to follow.

Follow the following strategy to create rare NFTs for a collection.

Trait Category. There may be, for example, five trait categories. This could be clothing, hair, mouth, background, and earrings. Each one of these categories would have a certain number of specific traits. For example, there could be seven different types of Mouths. The particular traits vary in frequency; some projects have as many as 40 to 50 per trait category.

Unique Traits. These are traits that fill each of the specific category items. From the above example, there would be seven different types of mouths. These could be Bubblegum, Cigar, Cigarette, Grin, Tongue out, Unshaven or Rage. These unique traits may appear only 200 times in a 10000 collection and become rare.

Rare Traits. These are unique traits that appear less than one percent of the time in the collection's total number. For example, in the BAYC project, Bored Unshaven Pizza Mouth appears 26 times in the collection of 10000 and is ultra-rare, a highly prized trait.

 

How To Go About Finding the Rarity?

There are numerous ways to determine rarity. These include :

Trait Rarity Rank. The rarest traits of NFTs in the collection are compared, the one with the lowest number determined as the rarest.

Average Trait Rarity: This calculates the average number of rare traits in an NFT. If an NFT has three traits and the rarity of these traits are 10%, 20%, and 30%, the average trait rarity is:

(10% + 20% + 30%) / 3 = 20%

Statistical Rarity. Here the rarity figure for each trait is multiplied to give an overall figure. For example, if an NFT has three traits and the rarity is 10%, 20%, and 30%, the statistical rarity is:

10% x 20% x 30% = 6%

 Rarity Score. While the above three are helpful, the Rarity Score is considered complete and is the most popular formula for making a rarity assessment. The total rarity score for an NFT is defined as "the sum of the rarity score of all trait values."

Rarity Score for a Particular Trait Value calculated by the formula:

1 / ([Number of Items with a particular Trait Value] / [Total Number of Items in Collection])

An NFT contains several traits; the Rarity Score value is added to find the final overall score.

 

Tools to Determine Rarity

It's very time-consuming to look through each NFT to determine the rare NFTs within each collection. Luckily there are tools to help; the most popular one is:

Rarity Tools (https://rarity.tools)

Rarity Tools can be used to find the high-value NFTs. It will help to determine the potential sale price of the NFT. It also provides the means to assess the rarity of NFTs from a newly launched project.

Rarity Tools is a popular tool, and all the major projects are listed on the Rarity Tools website. As NFTs became, popular more tools have appeared. Other tools include:

Rarity Sniper (https://raritysniper.com)

Moby (http://moby.gg)

Traitsniper (https://app.traitsniper.com/)

It is usual for smaller, lesser-known NFT projects to list their collection under one tool. For a broader experience, it's necessary to use and become comfortable with the numerous tools.

Conclusion.

The rarity of an NFT is an essential consideration but determining the demand for a project and future projection is more critical. It makes no sense to buy a rare NFT from a project with limited interest in the market. However, a combination of a successful project and a rare NFT is a winning strategy for trading NFTs.

 

The Advantages And Disadvantages of Ethereum Vs. Layer 2 Polygon
February 28, 2022
The Advantages And Disadvantages of Running An NFT Project On Ethereum Vs. Layer 2 Polygon

Everyone involved in NFTs is aware of the technology behind them. Blockchains act as the driving force for NFTs; these blockchains are used to store data and verify ownership. Unlike cryptocurrencies, the NFT is unique with no other version, where each coin is the same. Numerous blockchains allow NFT transactions to take place. These include Ethereum, Cardano, Flow, Solana, and Tezos. Ethereum accounted for over 97% of the NFT transactions of all the blockchains by the end of 2021. Layer 2 solutions for Ethereum that support NFTs are available with Immutable X and Polygon.

 

Ethereum Blockchain: Advantages and Disadvantages

There are numerous reasons why Ethereum accounts for the vast majority of NFT deals. In the short history of cryptocurrencies and blockchains, Ethereum is an early pioneer. It has developed protocols and standards that lead the way. Ethereum is an open-source, decentralized blockchain with innovative contract features to ensure a secure platform. Such capabilities allow the recording of high-accuracy transactions.

 

The popularity and the size of Ethereum have led many developers to work on the platform; its capabilities continue expanding. Many NFT collections utilize Ethereum as the choice of blockchain for NFT project development.

 

But its popularity has led to setbacks and issues. Due to the enormous demand, congestion within the network is an issue causing a high transaction fee (called the gas fee).

 

It's not unknown for the gas fee to cost more than the NFT itself! This issue has led to NFT projects looking at alternative blockchain sources to execute and store digital data. Unless Ethereum can address the problems, its market share will fall in the future.

 

The popularity of the Ethereum blockchain has meant the existence of many secondary marketplaces to cater to Ethereum NFTs. For those running NFT projects, Ethereum opens up more marketplaces to trade and promotion opportunities. There are other costs involved with Ethereum NFTs after the initial purchase. People need to pay gas fees for listing and auction sales on the secondary market.

 

Polygon Network: Advantages and Disadvantages

Polygon is a side chain secondary network residing above the Ethereum blockchain network - the primary layer. Polygon cannot complete the transaction on its network; it uses bridging to connect to the Ethereum network and use smart contract features. Polygon aims to alleviate and address the issues faced by Ethereum. It's less popular than Ethereum and does not face congestion problems. The secondary network has the infrastructure to ensure transactions are faster and more efficient.

 

The most significant advantage Polygon has over Ethereum is the low gas fees. Transactions occur quickly on Polygon, with no need for the same mining power leading to nominal transaction fees. Less congestion also contributes to lower expenses.

 

Polygon network is less secure than Ethereum. It opens the door for assets to become lost. For the sake of speed, there are fewer checks and balances in place.

 

Ethereum is the second biggest cryptocurrency after Bitcoin, and the coin associated with Polygon (Matic) is in the top 15. New people entering the market are more likely to purchase on the Ethereum blockchain than Polygon as they have a greater familiarity.

 

Purchasing Ethereum NFTs on marketplaces such as OpenSea is not tricky. But to buy Polygon NFTs, extra steps are required to bridge the Ethereum and Polygon network. For people without tech know-how, the process is not straightforward. People concerned about crypto scams going through lengthy processes may discourage participation. There are fewer marketplaces that cater to Polygon NFTs.

 

Conclusion

Ethereum is the premier blockchain for NFT transactions; it's the preferred option for most projects and individuals wishing to buy NFTs. Ethereum is perfect for high-value transactions as there is less likelihood of the NFTs becoming lost in the system.

 

Polygon acting as an intermediary has its use for low-cost NFTs and the budget-conscious. It is a good choice for smaller artists not wishing to pay high gas fees to list their NFTs and people wanting to buy inexpensive NFTs with low transaction fees.

 

The high demand for Ethereum NFTs has created congestion and high gas prices, which has seen the emergence of Polygon. The situation may change with the launch of ETH 2.0, which intends to solve the current problems faced by Ethereum. But the last 18 months have seen Polygon become significant, and the trend is set to continue in the near future.

Blockchains For NFT Projects: Ethereum Vs. Solana
February 28, 2022
Blockchains For NFT Projects: Ethereum Vs. Solana

A blockchain is like a database used to store data. Unlike a traditional database with only a few copies of the entity – a live database and some backup copies, the records on a blockchain exist on thousands of computers (referred to as nodes). While a regular database uses tables to store data, blockchain contains data blocks.

 

Blockchains are used for digital currency transactions, and as technology emerges, these blockchains are used in numerous industries. For example, IBM uses a private blockchain to hold supply-chain records. Aside from financial records, the most prominent use of blockchain is for Non-Fungible Tokens (NFTs).

 

Blockchain Technology Behind Ethereum and Solana NFTs

Numerous blockchains exist, but the leaders in the blockchain platform are Ethereum and Solana; they use technology in different ways to reach the same outcome.

 

Ethereum is the most established; it has been in existence since 2015 and is the most widely used blockchain for NFTs. Its popularity and approach to conducting transactions have led to expensive fees. The situation has provided an opening for competitors to enter the marketplace, with Solana, the most successful of the competitors. Solana started in 2017. However, in 2021, the popularity of NFTs and the limitations with Ethereum saw a significant increase in its use.

 

Ethereum is currently using a "proof-of-work" mechanism to operate. Any node that adds a new block to the chain must complete a complex puzzle. This process proves the computer has "done work," known as mining.

 

The news is broadcasted to other nodes in the network, and if accepted by others in the chain (in other words, consensus), a new block is added to the chain. The back and forth proof of agreement are time-consuming. It's the reason why Ethereum's transaction numbers are limited. The miner is rewarded in ETH for the work carried out (the digital currency associated with Ethereum).

 

Many people want to use the blockchain, leading to high transaction fees. Ethereum is in the process of moving to a “proof of stake” mechanism where a computer is allowed to validate transactions based on the number of ETH crypto coins it holds. This will result in more transactions and a reduction in fees. The drawback with the current “proof-of-work” is a slow process; it can only handle 15 transactions per second.

 

The Solana blockchain uses a different mechanism from Ethereum. It uses the “proof of stake” and “proof of history” approaches. “Proof of stake” means to carry out transactions, the node must hold crypto coins, in this case, SOL tokens. Solana can carry out as much as 50,000 transactions per second, a significant improvement on Ethereum.

 

There is no proof of consensus mechanism on the Solana blockchain. A timestamp determines when a process occurs, which is forwarded onto the next node to continue. Validation is carried out afterward utilizing the transaction time; it makes the process quicker. The vast number of transactions available on the Solana blockchain eliminates bottlenecks, and as a result, the transaction fees are low. However, the lack of proof of consensus leads people to question whether the Solana blockchain is decentralized.

 

Ethereum and Solana NFTs

 

As a result of the lower fees, many projects use the Solana blockchain. But the number is small compared to Ethereum. Solana has a smaller community of users and a shorter history as the newer entity. As a result, many investors are concerned and prefer Ethereum NFTs.

 

In December 2021, the Solana blockchain shut down for over 11 hours due to high memory consumption. This raises questions over the rules of decentralization. A decentralized system does not have one body of governance and should not wholly halt due to system failure.

 

Solana NFTs are eco-friendly. In contrast to Ethereum blockchain, it requires less power and less energy consumption. NFT projects on Solana are viewed as less trustworthy. Notable rug pulls have occurred where the project founders disappear with the funds following the mint. While this is also common with Ethereum, Solana NFTs are considered riskier.

 

Conclusion.

 

NFTs have been dominated by the Ethereum blockchain and enjoy a near-monopoly. Other blockchains competing provide a more outstanding option for the investor. Solana blockchain has seen a meteoric rise in 2021; that pattern is set to continue in the future. Its technology schematics are advanced, while Ethereum's "proof-of-work" approach utilizes older techniques. It remains to be seen how the "proof of stake" approach, once rolled out by Ethereum, will affect the NFT market.

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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