NFTs, also known as Non-fungible tokens are not hard to find these days. It seems like everyone has heard of them and someone you know likely owns one if not a few hundred.
NFTs can be found on any blockchain, some more popular than others, but all fall into some type of category. If you are new to the NFT scene, it can be very overwhelming. Where should you start? What should I buy? Why are there different prices from one NFT to another? Are these JPGs worth anything? Can I do anything with them?
Hopefully, I can give you a crash course on NFT categories, metadata, rarity, and utility. This is strictly an entertainment piece, and should not be used as a tool for buying NFTs. The market is still very immature and volatile.
Over the next few paragraphs, we will reference one of the top-performing NFT marketplaces on Avalanche, JOEPEGS. Avalanche is a proof-of-stake blockchain that appeals to all types of applications looking to deploy their project on a fast, secure, and scalable network. As of January 31st, 2023, AVAX has a total volume of $1.22 Billion in transactions and sits among the top 15 crypto tokens by market cap.
Using the JOEPEGS marketplace as an introduction to NFTs, you are able to see different types of projects. NFTs are generally organized by collection, and some collections contain few pieces whereas others may have tens of thousands to choose from.
As you look through the collections, you will notice that some NFTs are sold for significantly less money than another seemingly similar NFT within the same collection. And this has to do with the rarity, and subject matter of the NFT and if the NFT provides passive earning opportunities, all of which are part of the METADATA.
Metadata is responsible for giving your NFT its traits, value, and utility, basically, it is the details that make your NFT what it is.
So then how do you get started, and what should you be looking for? To answer those questions, you need to identify what you would like to do with your new NFT. There are several categories of NFT and each one provides either extremely limited usability or on the other end of the spectrum, layers, and layers of utility along with the ability to earn native project tokens as mentioned above.
NFT categories can be defined by what they do. NFTs that are nothing more than a picture are known as PFP (profile picture) and owners of these NFTs use them on TWITTER, Discord, Telegram, and any other social media sharing platform that requires a profile picture. The value behind these types of NFTs is pretty much confined by the artwork and the marketability of the community.
Another category that utilizes the PFP approach while also adding a layer of exclusivity is what I would consider “CLUBS” and these can be identified by any of the NFTs that get you access to future mints which are sometimes even free.
Mints? What is that? Typically, when a project decides to deploy an NFT on a blockchain such as AVALANCHE they allow anyone the opportunity to purchase these NFTs like any other goods sold by a company. They set a price, and the consumer pays in the tokens of the blockchain in which they are buying the NFT and in this case, it would be the $AVAX token. So, MINT is equal to purchasing, with the added layer that the proof of ownership is added to the blockchain, you are the sole owner of the NFT and there can never be another one like it (under these circumstances). Once you own the NFT you are free to do whatever you would like, sell it, trade it, and or PFP it.
The last category that we will talk about that is worth mentioning is gaming. These NFTs are part of a much more complex system that can range from simple mission-style click-and-collect quests all the way to video game quality projects.
The projects we will discuss below fall into at least one of the previously mentioned categories which were; PFP, CLUB, and GAMING.
In order to provide a relatively even comparison, the projects that will be highlighted below all have rather large collections of at least 5000 NFTs within and active communities within DISCORD and on TWITTER.
It is important to note that there is no right or wrong category of NFT and every project plays a vital role in supporting the AVALANCHE Network. Where you choose to invest your money, spend your time and contribute to the project is ultimatley up to you and what you are looking to gain from doing so.
Using the metrics, collection size, floor price (the price of the NFT within the MARKETPLACE), Discord community size, and trade volume we identified six projects that we wanted to compare the ROI of.
Those six projects are;
CHIKN 10,000 piece collection
Supercars 10,000 piece collection
Muscle Cars 10,000 piece collection
Party Animals 10,047 piece collection
MadSkullz 6,000-piece collection
Rich Peon Poor Peon 5,000–piece collection
For complete transparency, both Supercars and Muscle Cars are part of the MCVerse Gaming Hub, but also fall within the criteria presented above.
CHIKN
Category: Gaming
Floor Price: 62 AVAX ($20 AVAX) $1240.00 for new members to enter.
Game: Your CHIKN NFT earns you tokens that are part of the Tri-Token architecture, chikn is designed to create a perpetual value-loop and liquidity growth.
Grantsville Super Cars
Category: Gaming
Floor Price: 1.99 AVAX ($20 AVAX) $40 for new members to enter.
Game: Earn tokens just by owning one of the NFTs then use them for a wide range of gaming opportunities now and in the near future. Such as racing, open-world exploration, and future NFT mints.
Avalanche Hills Muscle Cars
Category: Gaming
Floor Price: 2.48 AVAX ($20 AVAX) $49 for new members to enter.
Game: Earn tokens just by owning one of the NFTs then use them for a wide range of gaming opportunities now and in the near future. Such as racing, open-world exploration, and future NFT mints.
Party Animals
Category: CLUBS
Floor Price: 5.5 AVAX ($20 AVAX) $110 for new members to enter.
Game: No game
MadSkullz
Category: Gaming
Floor Price: 3.89 AVAX ($20 AVAX) $77 for new members to enter.
Game: Staking and questing.
Rich Peon Poor Peon
Category: CLUB
Floor Price: 6.5 AVAX ($20 AVAX) $130 for new members to enter.
Game: No game
RECAP:
Chikn costs around $1240 for an NFT
Super Cars cost around $40 for an NFT
Muscle Cars cost around $50 for an NFT
Party Animals cost around $110 for an NFT
MadSkullz costs around $77 for an NFT
Rich Peon Poor Peaon costs around $130 for an NFT
If you are looking to get into a project that has an ROI, the floor price is going to be something you will need to consider. Additionally, in order to return on your investment, the NFT you buy will need to reward you with tokens. Ideally, this would be passive, meaning you earn the tokens just by holding the NFT.
Then you would want to look at how long it would take you to earn your original investment back and consider if the barriers to entry are easy, medium, or difficult.
Luckily we have already done the ROI on these top projects.
Assuming you do not already own ONE or are looking to add additional NFTs to your collection, this ROI takes into consideration the current FLOOR PRICE of the collection, the price of the project's token, and how long it will take to earn back your initial.
There are some critical assumptions that we must make in order to project out over the course of the year.
1. The price of the NFT stays relatively stable
2. The price of the Token stays relatively stable
Obviously, it is impossible to predict how much change will take place and if that change is positive or negative.But we can use that information to make decisions and figure out where the value is.
If You Buy A:
CHIKN NFT will take you 1,981 days to ROI
Super Car NFT will take you 2,077 days to ROI
Muscle Car will take you 323 days to ROI
MadSkullz NFT does not show an ROI
Party Animals NFT does not show an ROI
Rich Peon Poor Peon does not show an ROI
So, What Should You Do?
If you are looking to get into NFTs on AVAX, my first suggestion would be to join their DISCORD servers. Then get a feel for the community, read their announcements, look over any documents, and audit their roadmap.
If you find yourself in a welcoming environment and are excited about what the project is building, that is a great start.
Likewise, if you end up in a ghost town discord server with no updates or announcements in weeks or months, then proceed with caution.
DISCORD LINKS
CHIKN
Super Cars
Muscle Cars
Party Animals
MadSkullz
Rich Peon Poor Peon
The above list is just a sampling of the NFTs you can find on Avalanche, with dozens being developed weekly. The most important thig that we can do as a community, in general, is keep building, keep buying, and keep playing and supporting within the AVAX network.
NFTs and web3 gaming are just getting started, and for us over at the MCVerse Gaming HUB, we could not be more excited about what the future looks like.
Cheers,
Bourbin
Hang with us in Discord, tweet via Twitter, or interact with our WEB3 game by visiting our website.
CONTACT
DISCORD > join our community here https://discord.gg/heFHa9dGun
TWITTER > tweet with us here https://twitter.com/TheMCVerse
EMAIL > Bourbin@MCVerse.app
WEBSITE > www.mcvere.app | www.avalanchehills.com |
MINT
Mint a MUSCLE CAR > www.avalanchehills.com/presale
Muscle Car NFT marketplace > JOEPEGS | OpenSea| NFTKEY
Super Car NFT marketplace > JOEPEGS | OpenSea| NFTKEY
