What Is A Blue Chip NFT
Definition of a Blue Chip NFT
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 NFTs vs Blue Chip Companies
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.
What makes a Blue Chip NFT?
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.
1- Brand of the 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.
2- Creator's Reputation
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.
3- Execution of the NFT brand
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.
The importance of Blue Chip NFTs
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.
Examples of Blue Chip NFTs
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.