Airdrops, DAOs, token issuance and public domains are the next frontier for NFTs

Despite the volatility of nonfungible tokens NFTs amid volatile valuations and volume surges it continues to be the main theme. However, a new trend is emerging in the sector.

While aesthetic appeal is important, many investors view buying NFTs as akin casting a bait-laden line into an opaque body water and hoping for a bite. While some buyers liked the Bored Ape Yacht Club’s listing, they also thought that it was cool and that the community was dedicated. However, these metrics aren’t hard to value and can be applied to most assets in NFT markets.

While community activism and holder statistics are important to consider when purchasing an NFT for profit, it is not enough to just make the initial purchase and hope that you will turn a profit.

A few projects realized over the past month that more needs to be offered to holders, or “agreed upon” via the roadmap (or a decentralized autonomous organisation (DAO), in order to increase retention, diversify holders (rather then just whales owning the majority of the project) as well as incentivize future purchasers. Many projects have launched token issuance, DAOs, airdrops, and metaverse utility to meet these needs.

The Council of Kongz. CyberKongz

CyberKongz is an example of a utility-equipped NFT. This great ape-themed project has the NFTs issuing BANANA tokens. They currently trade at $63.70 on SushiSwap or OpenOcean. Genesis CyberKong issue 10 BANANA each day for a 10-year period. At the current valuation, Genesis holders make $637 per day.

Holders of two Genesis CyberKongz tokens can sell them on the market. They can also breed them to make a Baby CyberKongz NFT. This can be made by spending BANANAs.

Cool Cats and Winter Bears are two other “blue-chip” NFT projects who are adopting the “added utility model. They plan to issue a MILK token and offer staking in NFTX vaults. The Bored Ape Yacht Club offers real-life perks such as exclusive gear from Streetwear brand The Hundreds and airdrops to Holders.

These are the most lucrative NFTs available to investors. Source: BrokerChooser

The chart shows that six out of 10 NFT projects with the highest returns for investors offer tokens, airdrops, or utility plans in the Metaverse.

Cool Cats NFT are a high-end product at a very high price. Source: OpenSea

Cool Cats traded for 1.5 to 3 Ether (ETH) a month ago. But after the project announced plans of conducting airdrops and issuing a token, the NFTs established a new record-setting average price at 25.75 Ether. According to OpenSea data, Cool Cats currently trade at a floor price of 9.6 Ether.

Prices of Bored Ape Yacht Club NFTs. Source: OpenSea

Similar results can be seen in Bored Ape Yacht Club, where Sotheby’s auctions, Mutant Ape Yacht Club airdrops, and the release the roadmap all coincide with spikes in NFTs’ prices.

There is no token, but DAOs, CCOs, and sanctioned aerial drops are available

Some are concerned about tokens being issued by projects that look very similar to unregistered securities issuances. The United States Securities and Exchange Commission (Senate) and White House are constantly trying to regulate the crypto sector. Not every project is eager to add utility tokens their NFTs.

A few projects even went so far as to clarify that the tokens were intended to help the project’s “utility”, and not assets that reflect value or can be traded on an open market.

A friendly reminder that $banana IS NOT passive income. 1 Banana = 1 Banana. It’s just an @CyberKongz utility, that’s all. pic.twitter.com/lSbbXlrUJV
— The Boggartt (@TheBoggartt), October 10, 2021

CrypToadz, for example, has offered Metaverse use and issued tokens. Other projects, such as CrypToadz, have either created DAOs to increase community interaction or presented the project under the Creative Commons CCO 1.0 Universal designation. This means that the project is in the public domain and that the creator has “waived any copyright or related rights to it.”

CrypToadz NFT holders and their admirers can create, mint, and sell derivatives of the original projects. These derivatives can then be sold on the open markets or given to CrypToadz NFT holders.

Two CrypToadz were sold for over $1 million in the last week. The project also hit a 21 Ether floor which will have priced out many collectors who wanted to purchase one of the NFTs. Holders of CCO status can benefit from exclusive derivative offerings and bring more attention to the original project. A few other projects, such as CryptoZilla or Pixelglyphs, have adopted the DAO/CCO model after the success of CrypToadz.

CrypToadz 1519 bought for Ks420 ($1,504,364.40) Avg Price: Ks12.19 Rare Trait: Custom: Licked – Hallucination – 0.07%https://t.co/9LZdaWIFIO pic.twitter.com/oYgdiIYcNg
NFT Whale Alert (@nftwhalealert), October 6, 2021

The prices of NFTs can be volatile, just like cryptocurrencies. They are affected by sentiment, paid and non-paid influencers, as well as a variety of intangible factors. Projects are always trying new ways to bring in investors, build a community, and stay relevant due to the sector’s experimental nature.

NFTs that are token-bearing may be a trend that fades once everyone on the block embraces it. Similar things could happen with the airdrops to-holders tactic. There’s no way to know if the current “Form DAO and Buy Up All the Rares” approach will be successful.

It is important to remember that the space is always in an innovation phase, and successful collectors and investors are those who keep up with the latest trends.

Disclaimer: The NFT space is full of scammers and pump and dumps. You should be aware that the author is a member of CrypToadz and Winter Bears, and Mutant Ape Yacht Club. He also previously held positions with Cool Cats.

com. You should do your research before making any investment or trading decision.
https://cointelegraph.com/news/airdrops-daos-token-issuance-and-public-domains-are-the-next-frontier-for-nfts

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Donna Burk– Business News My Name is Donna Burk and I am also the main source from the ‘Dailynewssheet.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

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