When it comes to NFTs, the coolest of them all are undoubtedly the CryptoPunks. Representing the misfits, CryptoPunks have been there since the very beginning of all NFT projects and owning a CryptoPunk NFT means being a part of internet history, but what exactly is this bunch of strange characters and why have they become one of the most expensive NFT collections in the world?

Launched in 2017 by the Larva Labs Studio, CryptoPunks is a non fungible token collection found on the Ethereum blockchain.

As one of the oldest NFT projects and frequently credited as being the reasoning behind the NFT craze of 2021, CryptoPunks initially began as an experiment when Matt Hall and John Watkinson (founders of Larba Labs, now owned by Yuga Labs) had the idea of designing an app or game for smartphones. This project eventually resulted in a software program that would go on to generate thousands of different characters to be sold as crypto collectibles.

Inspired by the London punk movement of the 1970s, there are 10, 000 unique CryptoPunks to date - 6,039 males and 3, 840 females - each with their own individual characteristics, and no two punks are the same. 'They needed to be a collection of misfits and non-conformists,' say Hall and Watkinson. 'The London punk movement of the 1970s felt like the right aesthetic.'

CryptoPunks are randomly generated and come with a variety of different traits. They can have buck teeth, a mohawk, wear a beanie or even a top hat. The punks can also wear an earring, sunglasses and even rock a big beard.

The maximum number of traits a punk can have is seven, but there is only one of these in existence. Punks that have no distinctive features are known as genesis punks.

CryptoPunks aren't just limited to being male or female either - there are zombie punks, ape punks and even alien punks. These are much rarer than their human counterparts, and also come with accessories. Take the pipe smoking alien for example, which sold for an eye-watering $7.5 million in March, 2021. Which raises the question, how did something that started out as an experiment, go on to be worth so much money in the crypto community?

The Rise of CryptoPunks and Crypto Collectibles

Given that CryptoPunks art is worth so much money now, you will be shocked to hear that back in the early days they could be claimed for free by anybody who had an Ethereum wallet. Nowadays, the only way to obtain one of the punks, is via NFT marketplaces that are embedded on the blockchain. Through this NFT market, you can put buy or sell CryptoPunks, or even put a bid on.

Back in February of this year at a Sotheby's auction, a single lot consisting of 104 CryptoPunks with an estimated total value between $20 million - $30 million was withdrawn after the seller decided they didn't want to give up their collection, turning to Twitter and simply posting "nvm, decided to hodl". A Twitter user who goes by the name 0x650d.

CryptoPunks paved the way for digital artwork, having inspired NFT projects such as the Bored Ape Yacht Club - another collection which also consists of thousands of unique ape NFTs with a variety of individual characteristics.

As one of the oldest NFT projects and the first to appear on the blockchain, the current buzz around the NFT space and hype within the community probably wouldn't exist without these punks.

Listed Punks and the Different Coloured Backgrounds

If you are a prospective punk purchaser, then you need to know what the different coloured backgrounds mean!

A purple background shows that these NFTs have an active bid on them, a red background means that they are available for sale by their owner, and a blue background means that they are not currently for sale and there are no current active bids.

CryptoPunks are only available for purchase through the Larva Labs' website and you will need to log in with an Ethereum wallet - meaning that you can now buy, bid on and sell a CryptoPunk NFT.

Larva Labs tracks all of the listed punks in order of their price from low to high.

Because they hold the title as being the first NFT collection to ever be created on the Ethereum blockchain, CryptoPunks are considered to be extremely valuable - and because there are only 10, 000 punks available, only few can own one. It's with this rarity that comes the hefty price tag. And if you're fortunate enough to afford the opportunity to purchase a punk, then you will be setting yourself back at an average sale price (over the last year) of 109.79 ETH, that's a cool $134,903.37 USD.

If an alien punk is what you're after, then it will cost you a whopping 8,000 ETH ($23.7 million USD) which is currently the largest NFT purchase in history, bought by Deepak Thapliyal, CEO of Chain.

CryptoPunks owners include the likes of Jay Z, Serena Williams and one of YouTube's content creators, Logan Paul.

Due to its significance in the NFT space, as well as being a widely known and popular image, the CryptoPunks could very well be a good investment for the future. However, due to CryptoPunks being collectibles of digital art, collectors should not expect any future use cases for their non-fungible tokens.

Since the Yuga Labs acquisition in March of this year, the world waits patiently to see what this new ownership means for CryptoPunks, and where it will take them in the future. At only a few years old, these punks have already made a huge impact on the NFT space and will without a doubt leave a legacy behind, since CryptoPunks as non fungible tokens is really where it all began.

What started out as a small project for Matt Hall and John Watkinson, has gone on to take the crypto community by storm. And what may seem like a temporary craze, the punks have always been around to wreak havoc - whether it's in the real world, or the metaverse. The misfits are here to stay.

Created by Larva Labs in 2017, CryptoPunks has become possibly one of the most important NFT projects ever.

CryptoPunks | Fracas Digital

Long strings of numbers and characters meant to be read by computers are known as crypto addresses. These lengthy addresses have caused confusion and even financial loss.

The Ethereum Name Service, or ENS, is a distributed platform based on the Ethereum blockchain that gives an easy solution to long and complicated crypto addresses: a single URL that symbolizes a crypto address, exactly like a website name or email.

The Ethereum Name Service uses the same idea as the Domain Name Service (DNS), which maps simple website names to IP addresses, to make crypto addresses simple to read and communicate.

To visit a website in the early days of the internet, you had to type in the long public address, which was a long string of digits that was difficult to remember and practically impossible to predict. Then came human-readable names, which made it easier for regular people to navigate the internet. For Example, to find Google, you'd need to enter 172.217.18.196.

However the crypto world is still in its long addresses stage and to get to the pages they desire, users require long, difficult-to-remember addresses. This is where the Ethereum Name Service comes in handy. It aspires to make cryptocurrency as simple as surfing the web.

Ethereum Name Service (ENS) is a system that links machine-generated codes to human-friendly names, similar to DNS. The Ethereum Name Service, on the other hand, is a totally open, decentralized, non-profit name system that is Web3 compatible, unlike the Domain Name System. It is powered by The Ethereum blockchain, and the names on the ENS system are protected by smart contracts.

• Long strings of numbers and characters meant to be read by computers are known as crypto addresses. These lengthy inscriptions have caused confusion and even financial loss.

• The Ethereum Name Service is a distributed platform based on the Eth blockchain technology that gives an easy solution to long and complicated crypto names: a single URL that symbolizes a crypto address, exactly like a website name or email.

• The ENS registry, which records domain names, and the Resolver, which converts domain names to machine-readable addresses and vice versa, are both Ethereum smart contracts.

• Users are hurrying to obtain their ENS domains before they become unavailable, much as they did in the early days of DNS names.

• ENS supports a variety of domain extensions, including .com,.org,.io,.app, and more.

• Brave, Opera, Status (mobile), MetaMask Mobile (mobile), and Puma are among the browsers that now support the ENS name. A browser like Chrome or Safari will not operate with ENS.

The ENS is run by a decentralized autonomous organization (DAO), which is essentially a non-centralized organization. The DAO is governed by the ENS token, which allows holders to propose suggestions and vote on future development.

According to Coinbase in the last seven days, the service price of Ethereum Name Service has dropped by 50.21 percent. In the previous 24 hours, the price dropped by 24.81 percent. The price has dropped by 0.65 percent in the last hour. The current ENS price is £9.008571. Ethereum Name Service is now trading at a price of £69.443094, down 87.03 percent from its all-time high.

There are now 20,244,862.091 ethereumnameservice in circulation.

The Ethereum Foundation members Nick Johnson and Alex Van de Sande lead the early development of the ENS community.

The initiative distributed ENS tokens to users of the service in November 2021 and created a DAO, to run it. (True Names Limited is the legal entity linked to the DAO.) ENS token holders act as shareholders in the corporation, making choices regarding pricing, protocol modifications, and how funds are managed in the treasury.

The introduction of ENS tokens also resulted in the project's funding strategy shifting away from grants. On crypto exchanges, ENS tokens may be traded for US dollars and other cryptocurrencies, giving the project's creators a financial lifeline.

You may use an Ethereum wallet like MetaMask to look for available domain names at manager.ens.domains. After you've chosen your domain, the system will guide you through the registration process, which will need you to confirm two transactions from your wallet. You'll also have to decide how long you want to register a domain, with an annual rent of $5.00. (paid in ETH). As the domain owner, you may now configure the various locations or information you wish that name to connect to, as well as any subdomains.

The Chinese calendar states that 2022 is the year of the tiger, however, in the crypto world it is undoubtedly the year of the Ethereum Name Service. ENS has been the preferred platform for thousands of dApp (Decentralized App) customers, allowing them to migrate completely to Web3. ENS registered nearly 163,000 new domains in April alone, and by the end of the month, daily transaction volume on the platform had surpassed BAYC NFTs on OpenSea. It didn't end there, though.

With one million names generated on May 2, ENS hit a new milestone. With all of this activity, ENS names has dethroned OpenSea as the most popular gas-burning protocol on Ethereum.

Ethereum Name Service (ENS) | Learn all about ENS from the experts at Fracas Digital NFT

Ethereum Name Service (ENS) | Fracas Digital NFT

As discussed in our other blogs, a Non Fungible Token (NFT) is an irrevocable digital ownership and authorisation for a given asset regardless of whether it is digital or physical. Most NFTs including many well-known ones such as Bored Ape Yacht Club, are based on the Ethereum blockchain, where Ethereum is used for buying, selling and trading them. Although they are new, NFTs have proven to be a very popular way to earn income. However, trading these can sometimes have limited effect to earning profit due to the high charges such as the gas fees that can be charged through Ethereum.

Considering the high charges, many platforms have thought of other ways for users to earn rewards and passive income through NFTs. These other ways include staking, renting, royalties and many more. There will be an overview on the ways to earn passive income below, and the best NFT projects to earn passive income.

One of the most popular ways of earning passive income is through staking NFTs. Staking in easier words is locking NFTs for a set period of time in which users can also be rewarded at the same time. By investing in NFT staking projects, some individuals could earn from 5-20% profit, which can differ depending on the NFT and the platform used for staking the NFT.

Another way of earning passive income can be through renting NFTs. There are many NFTs that have high prices. Renting out these NFTs can increase tokens easily, resulting in earning passive income by merely renting them. Although renting is still in its early days, NFT creators already have an indication of the correct pricing and duration for renting out their tokens.

Some NFTs actually have limits on the prices you can rent the NFTs for, whilst on the other hand, with other NFTs, the rental price can be at whatever seems most reasonable to the individuals calculations. It would be obvious that the more well-known NFTs would have higher rental rates due to them being more in demand.

In addition to above, another method of earning passive income could be through NFT Royalties. Many NFT marketplaces are seen to be offering a way in which users can gather constant royalties from good tokens. This would mean that whenever that NFT is sold, regardless of the actual timing, the original creator will gain profit with every sale. This would guarantee passive income and this specific way of gaining the income would be instilled in the token itself, no matter what platform is being used.

Along with the methods mentioned above, there are many more ways of earning passive income. There will now be an overview on a few of the best NFT projects that can help earning passive income.

The Best NFT Projects For Earning Passive Income

One of the best NFT projects that can guarantee individuals to gain passive income would be CyberKongz. This is a collection consisting of randomly generated avatars. This NFT originally launched in March 2021 starting at only 1000 tokens which were sold out fairly quickly. CyberKongz gained much popularity resulting in a strong community being formed which expanded the project to include the BANANA token.

Individuals who are holding the original 1000 tokens of the NFT are eligible of earning 10 BANANA tokens per day for up to the next decade. This is a form of guaranteed passive income that many holders are able to receive, which they can use to hold on to or even trade or burn depending on their preference.

As well as CyberKongz, a further NFT project that could help earn a generous amount in the form of passive income could be Mutant Cats. This is a collection consisting of 9,999 avatars that are created on the Ethereum blockchain. Individuals who hold this NFT can stake and earn passive income through their native utility token known as FISH. For every staked avatar, there would be 10 FISH tokens rewarded per day. This NFT actually allows users to hold ownership of well-known blue chip NFTs.

Another well-known NFT that can generate passive income could be Bored Ape Yacht Club. Recently, this NFT has become popular and can be seen to have increased immensely in value. It was first launched at $200 and currently stands at $142,000 as per OpenSea. This NFT is so popular that well known celebrities such as Eminem and Neymar Jr have their ownership, even presenting them on their social networking accounts.

The interest of this NFT has increased a lot as well as the scope of being able to earn passive income by staking. Owners of these NFTs can even sell them for immediate profit, or keep them and enjoy NFT royalties that come along with it.

ReNFT is among the best NFT projects for earning passive income. It is the first rental platform, allowing many new similar platforms to be introduced. ReNFT allows individuals who are holding NFTs to rent them out, by putting forward a price and the duration of rental. As individuals are able to rent their NFTs, they can earn passive income through the income they make with the rent they receive.

In addition to the examples shown above, another good NFT project could be The Sandbox. This is a gaming platform run by the public. The users of this are able to make money whilst creating games, sometimes even merely playing.

Through this platform, one can earn passive income in many ways. It can become a rental platform where individuals can rent out their land for business, entertainment and even advertising purposes. Individuals who create games and assets are also able to sell them and in return, earn SAND tokens. These tokens can then be staked, making them eligible for earning passive income through the rewards they then receive.

Whilst investing in NFTs, there are many opportunities of being able to earn income in different ways. Above, there has been an overview on some methods that can help in earning passive income without really having to do anything major. A few of the best NFT projects to earn passive income have also been discussed above to help guide you where could be best to go to make more income on the side.

However, when looking to earn passive income, it would definitely be wise to conduct your own research and check everything thoroughly before making any decision, especially knowing how unpredictable the NFT and crypto world can be.

DISCLAIMER: This is NOT financial advice. Please do not take any of the above as financial advice, please conduct your own research.

Best NFTs for Earning Passive Income | Fracas Digital

Everything You Need To Know About NFT Staking

Usually whenever non-fungible tokens (NFTs) are mentioned, the first thought would practically be of the link with art and collections that can become successful and valuable overtime. As the market grows, the creators and collectors are on the lookout for new uses for NFTs. One of these is staking.

NFT staking in easier words is locking an asset for a set amount of time and earning in the form of either money or cryptocurrency whilst doing so. It locks tokens in a digital wallet in support of a blockchains functions making it more secure, in exchange for rewards in return.

With NFT staking, some NFTs can have an unlimited lockup time, whereas other NFT staking has time limits during which they can stake for before not being able to do so.

Staking is something that is used in several blockchains. Examples have been in well known cryptocurrencies such as Ethereum. Staking is the most straightforward method for users to gain interest on their crypto by staking coins for some time to earn more coins, similar to earning interest in normal banks.

This is something that would be perfect for long term holders as they are able to make passive income from their assets whilst staking, rather than merely holding them in wallets.

There are many types of NFT staking rewards. The kind of reward individuals can get would depend on the NFT itself and the platform it uses. Most of these platforms arrange for their users to be rewarded on a daily or a weekly basis.

The types of rewards depend on the NFT, however, most NFTs reward their users with a utility token which could come along with other benefits such as voting. There are many NFTs that also let their users stake these tokens themselves.

There are many platforms where users can easily stake NFTs that they are collecting. Some of these are shown below.

NFTX is a platform where users are able to not only stake, but also buy, sell and even swap their NFTs.

One of the most appealing ways in which NFTX is known for is that they allows users to have access to well known blue chip NFTs such as Bored Ape Yacht Club without having to actually buy from its collection. Using NFTX, anyone is able to invest in NFTs whether they are long term holders, traders or just starting out.

Another platform is WhenStaking, which allows individuals to stake their NFTs from the Onessus blockchain. Users can play games to win and earn NFTs in return which can also end up being staked. Users are also able to use their NFTs as an asset in any game that they choose, by the use of a leased version of a token that is staked.

Another example of an NFT staking platform is ‘LooksRare’. This is an open market that has the potential to double an amount through staking. LooksRare are known for continuously rewarding their users. Individuals are able to earn the native LOOKS tokens by simply buying and selling NFTS through LooksRare, making them eligible for staking directly on the same platform.

There are many NFT collections that allow staking and are well known for this purpose. Some of these are mentioned below.

Firstly, there is CyberKongz which is one of the main NFTs collections subject to staking, who reward with their own cryptocurrency known as BANANA. Owners or traders are able to be rewarded 10 of these tokens per day. There are many platforms where CyberKongz can be bought from, including OpenSea.

Another NFT collection Is known as Mutant Cats. Individuals that hold Mutant Cats can stake and earn FISH in return, which is Mutant Cats own utility token. Mutant Cats is a collection of 9,999 pieces of art, and for each staked art, users are rewarded 10 FISH tokens per day.

In addition to the above, there is also Doge Capital which instead of on the Ethereum blockchain, is on the Solana blockchain. By staking these, holders are able to earn DAWG tokens. Similar to the cryptocurrency ‘Doge’, this NFT is also a meme token. There are many platforms where Doge Capital can be bought and staked, including Magic Eden.

There are many advantages and disadvantages of staking. Some of the advantages are explained below.

One of the main advantages of staking in both NFTs and cryptocurrencies is that users can earn passive income. Even if the value of the token could increase or decrease whilst staking, there is still an earning that one could receive through staking.

The rewards that come from staking are not only limited to crypto assets being earned, but there is a wider variety that different NFT tokens provide for their users. This could include the power to vote, and even possibility to have future authority in the project itself.

Although there are benefits, there could also be disadvantages to consider when staking. These are shown below.

In cryptocurrency and NFTs, there are always risks of rug pull. This in other words is when the creators of NFTs leave projects, even scamming users by taking all the income. If one stakes their assets and a rug pull occurs, they would be left with worthless NFTs.

When staking, individuals are unable to sell their assets for a set period of time. During this time, it is possible that the price of the asset could rise or decrease in value, and due to staking there is no way to sell in this situation. However, for long term holders this would be less of a worry.

Overall, NFT staking is being able to lock up assets for a certain period of time along with being able to earn different types of rewards. There are many benefits as well as disadvantages that come along with this as discussed above. It depends on an individual as to whether or not they want to take part in NFT staking. There are risks with anything in the crypto world really, this could be a risk worth taking or it might be something to think about twice.

NFT staking allows you to earn passive income in the form of cryptocurrency by locking up your digital asset.

What Is NFT Staking? | Fracas Digital

A blue-chip NFT is a non-fungible token deemed as safe to invest in. it is an NFT that is expected to go higher in value. By looking at the past timeframe, these are seen as more reliable than other NFT projects. Blue-chip NFTs are basically NFTs that have a promising future ahead, best for the long run to make a good profit by selling them in the future.

The term ‘blue chip’ gives it away, as chips are most known for poker where there are three colours. During the game, blue chips are the most valuable compared to the others, similarly in the financial world, blue chip is known to be more reliable and valuable.

Blue chip companies, similar to NFTs are organisations that individuals have trust in to invest into their stocks, with the hope to make long term profit without having to worry about losing the initial investment. There are many examples of blue-chip companies such as coca cola, tesla, apple and many more.

Although there are many similarities between these NFTs and companies, there is an obvious difference between the two. The main thing that makes them both different is the platform they use, and the way in which individuals can make investments. Nevertheless, both blue chips share the similarity of having set guidelines to put together blue-chip brands.

Another difference between the two is that blue chip companies have been running for a lot longer than NFTs and are much more established and well known to the public, increasing the demand of the public investing in their stocks. Alternatively, due to NFT technology not being around for so long, most blue chip NFTs are relatively new to the market.

It is not necessarily easy to identify a blue chip NFT, however it is important to do so. Most individuals have to figure out for themselves whether an NFT project has the potential to become a blue-chip investment or not. This makes it essential for one to understand what makes a blue chip NFT.

A blue chip NFT consists of a reputable brand name, a positive standing of the team and the creator of the NFT, recent success and overcoming a bear market in the past, the current price of the NFT, as well as the public’s view on the NFT as to whether they show belief.

The creator of the NFT can make a huge impact on the success. If there is a successful and well-known creator making an NFT, many would have hopes that it could become a blue chip NFT.

Following, there will be common ideas that make a blue chip NFT.

Just like other blue-chip companies, a blue chip NFT brand is well known and recognised by many. Blue chip brands have been seen to change and become updated as time goes on to become more relevant.

An example of this would be an NFT project known as CryptoPunks which were at the time given away for free but became a blue-chip NFT due to the immediate response and success. Eventually they became a collectable NFT after starting by being given away for free, making them known by many due to their great reputation.

Blue-chip investments usually gain a positive reputation in public, with the possibility of becoming well known and collected around the world. It is seen that brands who not just take but give back to the public and share their success stories, gain the publics trust and a good reputation, which will remain with them in the foreseeable future. These are reasons why blue-chip investments are seen as a fantastic way to invest long term.

The most key credit of a good brand would go to the creator of the project. Without a good creator, there most likely will not be a good brand. It is a plus sign if the individual creating the NFT has a good reputation in public, as this will gain the publics trust and also help in making the NFT a blue-chip NFT.

Another key factor that would contribute to a blue-chip NFT would be the successful execution of the brand. As mentioned above, if an NFT project has a good brand, and the creator has a positive reputation in public, the execution of the brand would in most cases automatically become a success. However, this is not always the case.

There are many NFT projects that have a good brand and creator but do not necessarily execute their brand in the best way. It is important for the brand to execute the exact way that they have proposed to do so, as this is the main method which will distinguish between a blue chip NFT from a normal NFT.

Blue-chip NFTs are quite essential as they provide a way to invest in something that can be seen as reliable, with the trust that one can earn profit along with their investment. Furthermore, if given continued support, a blue chip NFT can carry on providing exceptional service and value to the public.

Many NFTs will not automatically become a blue chip NFT, or might not ever even become one. However, brands who continue to execute and give value to the public, as well as building their reputation, can eventually become a blue-chip NFT and possibly maintain this for as long as they keep working well.

A Blue Chip NFT is very important in gaining the publics trust and being a means in which the public would happily invest in without worrying about rug pulls or scams, which have become very common recently.

Blue-chip NFTs do seem to be a lot more expensive than regular ones, but they are more safer and secure for NFT investing. There are many examples of blue chip NFTs. The list of these includes the well-known projects CryptoPunks, Cool Cats, Bored Ape Yacht Club and many more. Along with the existing ones, there are many new and upcoming NFT projects that have high potential of becoming successful.

Out of them all, CryptoPunks is one of the most popular NFT of recent times. Comprising of 10,000 pieces of art, it is one of the first and most expensive NFTs. Many well-known celebrities have promoted CryptoPunks for example the famous rapper Jay-Z using the NFT as his profile picture on his social media account. This has increased the trust that the public has in this NFT making it one of the leading blue-chip NFTs.

Bored Ape Yacht Club being a collection of 10,000 is also one of the most successful NFT projects. This is relatively new and have many benefits such as being added to private discord servers with celebrities that own these NFTs. This has also increased the trust of the public with well known celebrities such as Justin Bieber and Neymar Jr promoting and owning these NFTs.

To conclude, blue-chip NFT projects can prove to be very beneficial. They are the safest form of NFT that have been around for enough time to evaluate time frames looking at their progress. Blue-chip NFTs ensure the public that their investments are safe and can give them good profit in the long run.

Blue Chip NFT projects show great potential of providing long-term returns on their investments.

What Is A Blue Chip NFT | Fracas Digital

Within every cryptocurrency and NFT, there are always ups and downs. The worst that can happen, and has a high possibility of happening is an NFT to going down to a bear market, however, this can sometimes prove to be an advantage in the long run if the right steps are taken. This article will go over ways to prepare for an NFT bear market.

A bear market is when there is an ongoing reduction in the price of an asset, whether it be an NFT or cryptocurrency. An NFT bear market is foreseen by keeping an eye on, and comparing the timeframes and prices. An NFT market usually changes a lot faster than other markets such as the crypto market, resulting in a faster decline or increase in prices.

One of the main signs of an NFT bear market is looking at the trading volume. If an NFT has more trades of individuals selling their assets, prices are likely to reduce a lot as the demand falls. A worrying sign would be if there are many selling their NFT but not many buying, this would be a major sign of a bear market.

Another sign would be if there are other projects similar to the NFT. If the hype of the NFT is low, most likely the demand will also be low and therefore the possibility of a comeback after the bear market would be less likely.

An additional sign of a bear market could be linked to the cryptocurrency market. NFT prices are highly impacted by the prices of cryptocurrencies. The main reason behind this being that NFTs are usually bought using Ethereum. Considering this, if the price of Ethereum reduces, this will affect the price of the NFT market and the price of the NFT will also reduce.

Steps to take during or before a bear market

The most important thing to consider when trading is that one must have the patience to hold their assets. There are always bullish and bearish times in the NFT market, but one thing to keep in mind is to never sell at loss. If there is a bear market, most likely it will increase back with time. Maybe this could be the best time to take a small break and come back later.

It is also essential to not invest everything into one asset. A portfolio should consist of smallholdings in NFT that one would not mind losing. Keeping some Ethereum would also be wise so that it can be used to buy NFTs at a low price when in a bear market, but looking wisely if it would be worth investing in these NFTs. It is important to do proper research when deciding whether to invest in an NFT and when the right time would be to do so.

One should only invest an amount that they do not mind losing. As NFTs do not have a certain outcome, anything is possible in the long run, therefore one should consider the worst-case scenario of a rug pull and not invest more than they can afford to lose. Most people usually use any extra cash to invest.

Another thing to consider in the bear market is whether the NFT is worth investing in. it is important to look at the potential of the NFT in the long run, and to only invest if it has a promising future and is well known.

In addition to above, one should check the whole timeframe of NFTs and see how they have performed in the past. Usually, any projects that rise in price after a bear market are seen as having good potential in the long run, also known as blue-chip projects. It would be a wise decision to invest in these kinds of projects.

As NFTs are still quite new and not always predictable, it is hard to know what to expect and when there could be a bull market or a bear market. A bear market will definitely not be pleasant, but it is something that should always be considered so that we can prepare for the worst-case scenario. The steps shown above can be considered during or before a bear market to prevent any loss.

DISCLAIMER: This is NOT financial advice. Please do not take any of the above as financial advice, and conduct your own research.

A bear market is defined by an extended period of time where prices continue on a decline.

How To Prepare For An NFT Bear Market | Fracas Digital

There is no denying that NFTs are all of the hype at the moment. Only last year, NFTs became a $40 billion market. And, this is only the beginning! We're sure you have seen news stories about NFT artworks being in huge demand!

We’re seeing crazy interest in different NFTs, from digital art to in-game avatars, and Otherdeed NFTs are the latest to experience insane levels of demand. In this post, we will reveal everything you need to know. 

Before we take a look at Otherdeed NFTs in more depth, we must first explain what an NFT is. Non-fungible tokens, as the full name goes, provide a way of adding scarcity to a digital item, which then drives value. This means NFTs can be purchased, invested in, traded, collected, and so forth in the NFT marketplace.

Unlike Bitcoin and other cryptocurrencies, you cannot exchange one non-fungible token for another. It is unique and cannot be replaced on a like-for-like basis, which is what makes NFTs so highly valued.

On the 1st of May, Yuga Labs experienced unprecedented levels of demand for its Otherdeed NFTs, which are similar to “title deeds” yet they are for digital land plots in the Otherside metaverse.

Yuga Labs has quite the reputation when it comes to NFTs. they have also acquired the Meebits and CryptoPunks NFT collections, so you may be familiar with them.

Before we delve deeper into the sale itself, we’ll explain what Otherdeed NFTs are to give you a better understanding.

To understand Otherdeed NFTs, you first need to understand Bored Ape Yacht Club, which is often abbreviated to BAYC. This is an NFT collection and ecosystem that Yuga Labs has developed. 

There are around 10,000 Bored Ape NFTs that make up the BAYC collection. These NFTs are unique digital collectables that live on the Ethereum blockchain. 

Your Bored Ape will double up as your membership card for the Yacht Club, providing you with access to benefits that are just for members. The first of these benefits is what is known as ‘THE BATHROOM’ - a graffiti board that members can collaborate on. 

You can then unlock future perks and areas via roadmap activation. 

Every Bored Ape is unique and has been generated from more than 170 possible traits, including clothing, headwear, expression, and more. While all apes are amazing, some are rarer than others. 

The apes are stored on the Ethereum blockchain technology, as ERC-721 tokens and hosted on IPFS. It will cost you approximately 0.08 ETH to buy an ape.

ApeCoin, which is otherwise referred to as $APE, is an ERC-20 governance and utility token that is used within the APE ecosystem for the purpose of empowering a decentralised community building at the forefront of web3.

Some of the different things that $APE is used for are as follows:

Incentivisation - ApeCoin is a tool in the digital economy for third-party developers that enables them to take part in the ecosystem through the incorporation of APE into projects, including games and services. 

Access - You will be able to get access to different parts of the ecosystem by using $APE. These are areas that would not be available otherwise, such as services, events, merch, and exclusive games. 

Means of payment - $APE is the utility token for the ecosystem, meaning all participants can use an open, shared currency, without the need for centralised intermediaries. 

Governance - Finally, ApeCoin is also the governance token for the ecosystem, enabling holders of $APE to take part in ApeCoin DAO.

It is important to know that there is a fixed, permanent supply of ApeCoin, which is set at one billion tokens.

This total is never going to get greater, as there is no minting capability exposed through the interface of the contract. Moreover, any token burning capability is not exposed by the interface, so the total supply will never get lower.

Now that we have provided you with some all-important background information regarding BAYC, let’s look at Otherside. Back in the spring of 2019, Yuga Labs posted a tweet revealing that Otherside, a game powered by $APE, was going to launch this April and it would be based on BAYC.

More information started to come out about this exciting and fascinating game. It was set to be an MMORPG game whereby players can employ their NFTs as characters or native avatars. At the time, a report was published by Cointelegraph, where they stated that an investor pitch deck revealed that Yuga Labs anticipated earnings of $178 million by selling virtual lands, with APE being a de-factor to token to process these purchases. 

The date was then set; the Otherside land sale was to get underway on the 30th of April, with Yuga Labs letting everyone know exactly one week in advance.

A few days later we were given some details:

We were informed that you would need both ETH and ApeCoin in your wallet. While the mint would be exclusively in ApeCoin, some ETH would be required for gas. 

The mint was to have a Dutch style of auction, meaning the price of ApeCoin would actually reduce over time. 

For both MAYC holders and BAYC holders, they would be able to claim a non-fungible token for 21 days after the auction. In order to claim, KYC approval is not needed, but people did need to be KYC-approved for minting NFTs.

They also made it clear that any ApeCoin that would be earned from the auction would then be locked for up to one year, meaning it could not be used to vote in ApeCoin DAO.

So, what’s the Otherdeed side of things?

An “Otherdeed” is the key to your Otherside. If you hold an Otherdeed, you will have the ability to take part in prototype builds, demos, and tests so that you have a direct impact on the final design and experience the game provides. 

Moreover, each Otherdeed is also a dynamic NFT, created as a collection of elements, from Kodas to resources, which will evolve as you are moving component pieces around. 

More in-depth details about the ‘Otherside’ land sale

The Otherside contained 200,000 unique plots of land, which could be claimed using Otherdeeds once the Otherside world launched. 

It was the first 100,000 Otherdeeds that we made available on the 30th of April. We currently do not know about the next 100,000 Otherdeeds and when they will be revealed. 

The Otherdeed NFT mint was set to happen at 9 pm ET on the 30th of April, with a mint price established of 305 ApeCoin per Otherdeed. 

There were 55,000 Otherdeeds that were up for sale to be bought using KYCed wallets. 

In order to mint, there were four requirements that you needed to meet:

You needed to already be KYC approved by Blockpass

Anyone who held MAYC or BAYC NFTs was able to claim one Otherdeed for each BAYC or MAYC NFT they had. Once the first 100,000 Otherdeed NFTs were sold, MAYC and BAYC holders had 21 days to claim their Otherdeed NFTs.

When you purchase land, you will get a digital NFT artwork icon, which is a representation of the sediment your land boasts. Every sediment comes with a unique frame (environment), which goes with it. 

The dots on top of the icon represent how rare the land is, with tiers from one to five. Should there be an artefact in your land, it will be shown underneath the land, and the dots here represent resource rarity, with tiers from one to three. 

There will also be a token ID displayed if your land has a Koda. 

There are a total of 15 categories of traits for the land, which are as follows:

At the moment, there is still not as much clarity out there regarding each of the traits. However, what we must make clear is that even if you got three tiers in one trait, the overall value may not be as great as you would expect. 

They are important, though, as these traits combined will determine how rare your NFT is. 

Every Otherdeed NFT available is a dynamic one, created as part of a collection of all of its elements, from Kodas to resources. Rather than being a static representation of a piece of your land, your Otherdeed for Otherside is designed so that it evolves along with what you decide to do in the game. 

With these NFTs being dynamic, the possibility to evolve or upgrade could be there. Perhaps five or four dots are just the beginning? It is possible that people can evolve their land in a more enjoyable way with the resources they mine for it. Even if you begin on a lower tier, it does not mean it is the end of the road for you. You could make it richer in the future. Of course, this is all theoretical at the moment. 

We have mentioned Koda a few times now, and you may be wondering what on earth this is! Well, every plot of land is going to have the possibility of containing some rare artefacts, natural resources, and if you are very lucky, a Koda. 

A Koda is basically an Otherwise local, however, information is a bit short in terms of their role within the future metaverse. We know that they are important, though.

On the Otherside website, an introduction to the Kodas was posted. They were called the “primal beings” that ushered us into the Otherside. Helpfully, the introduction also said that we do not know what their affinity to the land is or why they have brought us here. But we have been told to tread cautiously if we meet a Koda. All very intriguing, right?

In the 100,000 plots of land parcels, there are only 10,000 Kodas. At the time of writing, the floor price for an Otherdeed with a Koda on it is approximately 20 ETH.

There have been some rumours that Kodas are going to become a separate PFP NFT project, but there has been no confirmation of this. 

What we do understand at the moment, though, is that a Koda is viewed as a stamp of rarity, so those who managed to bag one will definitely be feeling lucky. 

But as we will highlight a few times, this NFT collection is a dynamic one, and so this means you could potentially exchange Kodas with others in the future or airdrop one. We will have to wait and see.

How did the first 100,000 Otherdeed NFTs end up being distributed?

The first 100,000 non-fungible tokens were distributed in the following manner:

55,000 NFTs were purchased using ApeCoin for the Infinite Expanse, Cosmic Dream, and Rainbow Atmos

20,000 NFTs are for the MAYC claim, which is for the Chemical Goo on the swamp’s outskirts

10,000 NFTs are for the BAYC claim, which is for the Biogenic Swamp that is housed in the centre of the Otherwise

15,000 NFTs are for Yuga and other project developers for Infinite Expanse, Cosmic Dream, and Rainbow Atmos

According to statistics offered by Nansen, Otherdeed for Otherside was the top-selling collection of NFTs in the first few days of May. In fact, on the 3rd of May, statistics showed that around 11K ETH was spent within the previous 24-hour period.

These figures alone show that the Otherside metaverse land sale was a success. 

There was a crazy amount of demand for the land plots that were made available for purchase in the NFT marketplace as part of the Otherdeed sale. However, the sheer demand resulted in a number of issues. 

In terms of the size of this NFT mint and the huge levels of demand, it is fair to say that the sale was unprecedented. Yuga Labs released a statement stating that they had hoped that the unique challenges they faced would be dealt with thanks to a rigorous gating mechanism, which involved a significant clearing price at 305 ApeCoin, a maximum mint of two for every KYC’d wallet, and an on-chain KYC.

However, this was not enough to ensure that everything went smoothly. In fact, Etherscan crashed because the scale of the NFT mint was so big! Yuga Labs have since apologised for “turning off the lights on Ethereum for a while.” 

They have also said that it seems evident that ApeCoin is going to need to migrate to its own chain so that it can scale properly in the NFT market. 

Sadly, some users experienced failed transactions because of the huge levels of demand being forced through the Ethereum bottleneck. Yuga Labs said that for everyone to who this applies, they will be refunding your gas and they appreciate the willingness to build alongside them. 

Otherdeed by Otherside | Learn all you need to know about the new collection by the creators of Bored Ape Yacht Club from the NFT experts at Fracas Digital