The term "Blue Chip" refers to those NFT collections that should maintain their value unchanged even in extreme market conditions so they would be good long-term investments (the term derives from the blue chips of Poker). In the traditional world, Blue Chips could be the brands Amazon, Coca Cola, Puma, Adidas, etc and all those brands that have existed for several decades.
It's really like this? Similar collections should maintain a certain price stability and solidity of the project to which they belong. Many people see NFTs as simple jpegs, however some of them guarantee special drops, merchandising, invitations to events and more. Surely the majority are "bluffs" but the Blue Chips are defined as such, thanks to the strong team behind it, to any developments and to the brand.
Among these collections there are certainly those of Yuga Labs such as the CryptoPunks (among the first NFT in history) and the Bored Ape (which now also have their own metaverse). Within the same collections there are NFT that are rarer than the others, due to the attributes (you can check the various ranks here Rarity Tools. There are also price aggregators among various markets that allow you to find the lowest price: Gem.xyz and Genie.xyz). If we look at this bear market, even the so-called blue chip collections have been wiped out by the market crash. Although many of these collections are held by large investors, speculation is always present because some of these projects have had a very low or even free mint price. Retail, which for some reason has minted so many, is trying to take a profit.
The collapse occurred not only at the level of ETH (floor price) but obviously also in the equivalent value in dollars. In September a report by Nansen had shown that Blue Chips had been less volatile (BAYC #6388 sold for 869.7 ETH with a profit of 809 ETH or CryptoPunks #3614 sold for 275 ETH with a profit of 265 ETH), however in recent weeks there has been a slump for Bored Apes as Franklinisbored (Twitter) has decided to sell many of its Bored Apes. Franklin is the largest Bored Ape holder in the world: at his peak he was 59! Is it the end of Bored Ape? Absolutely not because if Franklin has managed to sell so many of them so easily, it means that they still have a lot of demand because there are people willing to buy them (even if many at bargain prices, suffice it to say most of these Bored Apes had a floor price on $500,000 and Franklin sold them for about $60,000 a few weeks ago). Moreover, let us remember that the Bored Ape are held by celebrities such as Snoop Dogg, Neymar, Eminem, C.Ronaldo, Madonna, etc. It should be considered that the integration of these NFT as a profile picture on social networks (Twitter, Instagram), within a few year could bring the floor of some of these collections to levels never seen before.
What are the Blue Chip Collections?
-Mutant Ape Yacht Club (always connected to Bored Ape)
-World Of Women
-Gutter Cat Gang
If you look at the floor of these projects, there are several sold for around 1 ETH, not necessarily for Blue Chip we are referring to projects sold for at least 10/15 ETH. Surely these are less solid projects than this name, initially born to identify only CryptoPunks and Bored Ape.
Some projects that used to be considered Blue Chip, then have seen the floor collapse in a huge way for example 3Landers and Cereal Club (which has received a lot of FUD, although the project is still active and are about to launch their brand on real cereal giving privileges to holders).
Other interesting projects are Imaginary Ones, On1 Force and of course World Of Women Galaxy (the team is the same as World Of Women, this project with a supply of about 21,000, was born to give everyone the opportunity to have a World Of Women of which only 10,000 had been minted).
What parameters should I consider for Blue Chips?
1) Be known by the community and this is achieved through the "name" of the brand. Think Cryptopunks or Bored Ape. Social pages are very important but be careful because having many followers is not synonymous with a worthwhile project: likes and followers can always be bought
2) Team (sometimes these are artists active outside the NFT world, others instead have built their name in the crypto world and therefore NFT itself: for example Doodles or Cool Cats)
3) Roadmap (however you have to be good at distinguishing real intentions from scams; certainly if the team behind it is known and has already been incorporated into other successful projects, it is much easier to trust)
Clearly we must consider that, beyond any utility or merchandising, it is the people themselves who give value to NFTs. If the market no longer believes in that project or if the development team makes mistakes... the floor comes down and it's inevitable. The higher the floor tends to be, the market is less manipulable (a project with a low floor has fewer holders because there is certainly someone who holds a large amount of them, so it is easier to manipulate the price by triggering downward auctions if the floor has risen by a lot and at the same time the gain is high).
1) Don't trust anonymous teams that talk too much about prices and start with absurd hype
2) Avoid NFT with parabolic price climbs: anything that goes up fast, goes down just as fast (it's just speculation)
3) Avoid projects born on Instagram: they are almost all scams
4) Avoid derivative projects: there will always be only one Bored Ape (apart from the Mutants created by the same team)
5) There is no tool that can animate your NFT or make it different because NFT are non-fungible and, once created, no longer editable. You have to pay attention to those who contact you privately, by email or who offer you stuff that is too advantageous...they are always scams
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