Blue Chip NFTs - Non-Fungible Tokens 101

As people have started to learn more and more about NFTs, it seems that their overall level of popularity continues to grow. One common factor while investing in NFTs is that it is really easy to lose money if you do not buy the right NFT at the right time.

So, what do you do if you want to get in on the NFT trend, but do not want to lose money? This is how the concept of Blue Chip NFTs was born. Blue Chip NFTs are the NFTs where it is less likely that you will lose money over time.

What are Blue Chip NFTs?

To understand Blue Chip NFTs, we need to understand the term “Blue Chip” and what it refers to. From investing point of view, Blue Chip is seen as something stable, safe, and well-organized. In the world of art, Blue Chip is referred to as the highest quality art. When it comes to cryptocurrencies, Bitcoin and Ethereum are undoubtedly the market’s Blue Chips. They have a good track record, and they are not going anywhere anytime soon.

Investing in Blue Chip NFTs is not for everyone because they are very expensive. However, once you invest in a Blue Chip NFT, be ready for a huge ROI and countless exclusive benefits.

How to identify if an NFT Project is Blue Chip?

Since NFTs as a concept is not that old, it is difficult to judge them based on longevity. Although there is no official list of Blue Chip NFTs, that’s not how we decide which NFTs are Blue Chip investments.

Track record and trading history are the two most important factors when investing in NFTs. If a project has been dominating the market for a while, and the NFTs provide excellent value to the holders, we call it Blue Chip NFTs.

Other core factors are:

• Rarity – The rare an NFT, the more chances it has to be in the list of Blue Chips. There are some Rarity Tools online from which you can check how rare an NFT is. If you find a rare NFT project but the NFTs are expensive, buy the cheapest of that collection and it shall be a good investment.
• Active Community – Another big trait of a Blue Chip NFT project is a huge, active community. The community connects to plan exclusive projects and make the most out of the benefits that come with owning their Blue Chip NFTs.
• Reputation – If you find a project with a good reputation, launch an NFT project, and enlist it into your future investment.
• The Artist – You may have heard that Beeple sold his NFT collection for $69M. Try to find the next Beeple. Apart from art and its rarity, the artist’s hype also sets the price of an NFT.
• Developers – Developers also play an important part in bringing these ideas into a reality. While investing in a Blue Chip project, always remember to look up the project’s developers.
• Last but not the least, Projects linked with celebrities – Celebrities always invest in Blue Chip projects. If you see a world-famous celebrity investing in an NFT project that checks all the above-mentioned points, congratulations, you just found a Blue Chip project.

Examples of current Blue Chip NFTs
CryptoPunks – Comprising 10,000 unique art forms, CryptoPunks is one of the earliest and most expensive NFTs. The project was launched in June 2017 by Lava Labs Studio. If you want to buy a CryptoPunk for yourself, be ready to spend $300,000 to $500,000 on a single piece of art. The project has fetched more than $23 million for a single NFT.

Bored Ape Yacht Club – This one, too, is a collection of 10,000 unique Bored Apes. Launched in April 2021, BAYC is one of the most successful NFT projects. The reason behind their success is their exclusive benefits. For example, you will be added to private Discord servers with other celebrities that own these NFTs and are powered by the Ethereum blockchain. Renowned celebrities such as Justin Bieber and Neymar Jr. own Bored Ape NFTs. Bored Ape Yacht Club NFTs go for around $250,000 each.

Cool Cats – Created in June 2021, Cool Cats followed in the footsteps of the Bored Ape Yacht Club collection by making swift growth in a short period. Each of the 9,999 randomly generated NFTs features a unique cat that you can own on the Ethereum blockchain. Currently, there is an average daily volume of 210 ETH, equating to about $610,000 worth of cats at current ETH prices being exchanged each day.

The Sandbox – The Sandbox stands out as one of the most unique NFT collections. Since it is in the metaverse, you own virtual land that you can build and improve as you see fit. One of the noteworthy actors to push Sandbox up to Blue Chip status was Snoop Dogg, who recently boasted an asset value of $4.8 million in the metaverse.

Decentraland – This is another metaverse project where users can buy fake land that does not exist anywhere but, on the ETH, blockchain. The popularity of the platform is not to be questioned. One noteworthy sale on the platform was valued at $2.4 million.

World of Women – Another NFT collection that features 10,000 unique assets that feature human-like animations of women. The artwork itself is relatively high-quality and has generated quite a bit of attention in recent months. To get your hand on one of these beautiful women, you will need to have an average of 10 ETH ready, or about $30,000.

Cone X – Clone X is an NFT collection that features 20,000 different high-quality 3D avatars. Like other similar projects, each avatar comes with its characteristics and aesthetic features. Here, users can use them as avatars in the metaverse. On OpenSea alone, over 122,000 ETH has been exchanged on these NFTs.

Moreover, other factors can also affect the floor prices for NFTs. For example, Azuki recently had a major backlash due to controversial revelations by one of its founders.

I fucked up.

After the spaces today, I realized my shortcomings in how I handled the prior projects which I started. To the communities I walked away from, to Azuki holders, and to those who believed in me — I’m truly sorry.

1/x

— ZAGABOND.ETH (@ZAGABOND) May 11, 2022

How to buy a Blue Chip NFT?
Buying a Blue Chip NFT involves three simple steps. Firstly, the users must establish a digital wallet that interacts with the blockchain. Secondly, users need ETH in their wallets to fund the transaction. Thirdly, buyers need to purchase the item and pay the transaction fee. 

The first step in the process is establishing a digital wallet that can interact with the Ethereum blockchain. The most commonly used digital wallet is MetaMask because of its simple user interface.

Once the MetaMask wallet is connected and enough ETH is in the wallet to purchase and pay for the gas fee of the NFT, users have the option to purchase and bid. 

The procedure of purchasing an NFT is done through the use of smart contracts; this is computer programming and is what makes the NFT process possible. Smart contracts allow the wallet to interact with the blockchain. 

How to avoid scams?
Scammers create fake websites, fake NFT collections, and even approach you with viruses or fake sob stories. It is safer to store your NFTs on a hardware wallet. Be aware of anyone who approaches you directly on Discord or by email. Odds are they are trying to trick or manipulate you. Avoid a deal if it’s too good to be true.

Overall, people want to be sure that their investments are safe and earn them a return. Before investing in an NFT, make sure that the project has all the traits of a Blue Chip project. Blue Chip NFTs are not easy to identify. Some of the most famous ones are considered blue chips, but they are too expensive, at least for some. So, if you want to invest in a Blue Chip project, find a project that has the potential to become a Blue Chip, and invest.