What Are Blue Chip NFTs And How To Identify Them?

If you are new to the NFTs space. You may have listened the term blue chip NFTs but don’t know what are blue chip NFTs. It is a very popular term used in the NFTs world. 

Blue NFTs are the NFTs with a popular name, high market demand, audience trust, and high value. These NFTs are considered the safest investment in NFTs projects. 

Let me tell you more about blue chip NFTs. What are blue chip NFTs and what turns a simple NFTs project into a blue chip NFTs project?

What Are Blue Chip NFTs?

Basically, this blue-chip term came from poker, in three poker we have chips of three different colors, blue, green, and red. Blue chips have the highest value as compared to all other poker chips. So this term is used in the different fields of life and now in the NFTs.

A blue chip is not the new term but I can understand it may be new to you. Before the NFTs came into existence blue chip term was used for highly valuable and safest investments in the real world. Like blue chip finance, blue chip stocks, and blue chip bets. It means the blue chip means the safest investment that has a high chance to return you a good profit in the future.

These are called the safest investments because of their proven record and people’s trust. 

So blue chip NFTs are successful NFTs projects with high demand, high value, and audience trust. These NFTs are considered the safest investment in NFTs as compared to other NFTs projects that can give good returns. Like cryptopunks, bored apes, cryptokitties, art blocks, etc

If we take the example of blue chip stocks like Amazon, Apple, Tesla, etc. These companies own people’s trust because of their tremendous growth in the past. So if you buy the stocks of these companies, these are the safest investment and can return you a good profit in the future.

Blue chip NFTs versus giant old blue chip companies:

There is no big difference between blue chip NFTs and giant old blue chip companies. The difference is technology, platforms, and investment style. But both are traded publicly, the NFTs are not so old. NFTs were introduced back in 2017.

If we compare blue chip NFTs like cryptopunks, and bored apes to Apple, Amazon. These blue chip NFTs are so new as compared to the companies. If we take the older blue chip NFT project cryptopunks that was launched in 2017 when most blue chip companies were introduced back in 1998. 

These blue chip NFTs have a proven record and people trust them, same as people trust blue chip stocks. The audience invests in blue chip NFTs after analyzing the history and concise prediction based on facts. This analysis is only possible with experience. Newbies can also do this with the right experience.

How To identify a Blue Chip NFTs project?

As I mentioned above some facts that the NFTs are new in the market as compared to blue chip companies so it is very difficult to identify a blue chip NFT as compared to blue chip stocks. 

There are many factors that you can check to identify a blue chip NFT project like previous successful projects, artist, team, community, price, and audience trust. If the company behind an NFT project has a strong portfolio of the previous project there are high chances of this NFT project becoming a blue chip. Let’s discuss some important points.

Team and company behind a blue chip NFTs project:

The team behind and the company behind an NFT project is the main reason why this NFTs project should be a blue chip. If the team and company of collection have done some successful projects in the past. People will trust them because they are willing to adopt new trends and cultures. Like cryptopunks was released back in 2017 and these 10k NFTs were given away for free. These NFTs were trendy and people could relate to them that’s why they become a blue chip NFTs project. 

Artist:

Blue chip NFTs can be identified by artists. If the artist of an NFTs project has some successful projects in the past. People trust their new projects as well. We can take the example of PAK, He is well-known and one of the top NFT artists. If he launches a new NFTs collection it has a high chance to become a blue chip NFTs project. 

If the creator has not done any previous NFTs projects the project can still be the blue chip. Because all it takes is the audience’s trust. You can take the example of Gary Vaynerchuk and his NFTs project VeeFriends. VeeFriends was his first NFT project in the NFT space and that project became a blue chip NFTs project.

Because Gary has a lot of social media fan following because of his free knowledge-sharing tips. People can easily relate to him and trust him because of his positive vibe that can be smelled easily. When he launched his first project VeeFriends it sold for $20 million and now has a trading volume of more than $130. So audience trust in the creator can make an NFTs project blue chip.

So it is not mandatory that the creator should have some previous successful projects. But it is counted as a plus and the project has more chance to become a blue chip. 

Road map execution of the blue chip NFTs project:

I have mentioned two points above the one is brand reputation and its team If the both are good and qualified. The more probably the plan execution of the collection will also be accurate. 

Every NFTs project has a road map that is available to the audience. You can check the road map and the execution of the project. Is the execution according to the road map or not? Or the project is delivering what was promised in the roadmap?

These are the points that separate a blue chip NFTs project from an average project. You can check the road map execution of an NFT project and can guess easily whether it will be a blue chip or not.

In the NFTs space, some fake NFT projects try to copy the above-mentioned points to scam collectors. In reality, it is just a trap to grab collectors’ cash. In my opinion, the rug pull scam is one of the most common scams floating around, and it is advisable to be aware of it at all times. Previously, I wrote in detail about rug pull. 

How Important Are Blue Chip NFTs?

If I answer this question in one line. So the answer is blue chip NFTs are important. Now let me tell you how important are blue chip NFTs. 

Blue chip NFTs are very important because these NFTs provide a safe investment to the collectors. Because these projects are organized by reputed brands and teams so they keep providing value and utilities to their holders. 

Most NFTs try to become blue chips but many of them fail to become blue chips. But in this trial, these projects provide utility and value to their collectors and keep their struggle going. The community is always rewarded by blue chip NFTs and non-blue chip NFTs. So that’s how important blue chip NFTs are to set a quality standard.

Examples of Blue Chip NFT Projects:

There are many types of blue chip NFTs, some are PFP NFTs (Profile Picture Project) and some are others. So here are some top blue chip NFTs. 

Cryptopunks:

Featuring 10,000 original PFPs (Profile Picture), this is an impressive collection. Nearly every other collection was inspired by cryptopunks. There was no one caring when Punks launched for the first time. Free giveaways were being offered. The audience collected cyptopunks free of charge as a cool art piece. There is no way for them to predict that the project will be a blue chip and worth millions of dollars. Numerous punk derivative projects have emerged since CryptoPunks became blue chip. 

CryptoPunks was the only king of the PFP blue chip NFTs until the bored apes came to the market. 

Bored Ape Yacht Club:

This was the project by Yuga Labs and similar to cryptopunks but they added more utilities and values to their customers. It is a PFP (Profile Picture) NFTs project. This collection was cool and people were able to relate to the characters. Additionally, the celebrities and influencers were extremely interested in the project. People trusted the collection and it sold for millions of dollars. The project also promised utilities and fulfilled the promises like free NFTs drops and a live physical event for holders. These are many reasons why the bored apes is a blue chip NFTs project.

VeeFriends:

blue chip veefriends NFTs

Gary Vaynerchuk known as Gary Vee created an NFTs collection named VeeFriends, containing 10,255 NFTs which are representing 268 different hand-drawn animal characters. OpenSea currently ranks the collection among the top 30 projects of all time. With VeeFriends, NFTs are issued with real-world utilities, meaning that the holders of these NFTs will have real-life utilities. 

VeeFriends have currently 56.6k trading volume and are a well-known blue chip NFTs because of its utilities.

Art Blocks:

This is a powerful generative NFT art platform that provides collectors around the world with unique, programmable, and on-demand art. The art block has many collections but I will discuss the top 3 blue chip NFTs collections here.

Chromie Squiggle:

Chromie Squiggle was the first NFT drop created by AB Curated founder, SnowFro. In Chromie Squiggles, characteristics such as gradient changes and segment count are determined by minted seed tokens.

Fidenza:

According to Fidenza, it is characterized by its versatility in creating curvaceous and colorful patterning. As of August 31, Fidenza #313 set a sales record of 1,000 ETH (~$3.4M).

Ringers series:

Secondary NFT marketplaces extremely praise the Cherniak’s Ringers series. A string can be twisted in infinite ways around a set of pegs in ringers. Geometric minimalism is exemplified by Ringers since the algorithm is inspired by a user’s own transaction hash.

Which is the best scalping or long-term holding for the blue-chip NFTs?

Scalping requires a lot of time and experience. Because you need consecutive wins to be profitable. Scalping is something like buying cheap items from sales and listing them on some online marketplaces.

Buying NFTs at a lower price and holding it for the long term to get good returns is another approach that is called long-term holding. This approach requires some research but it has a higher success rate than scalping. Long terms holders prefer to invest in blue chip NFTs because of the audience’s trust. 

So the answer is long-term holders are mostly the buyer of blue chip NFTs.

Safety Tips for Blue Chip NFTs:

Safely secure Blue Chip NFTs:

This point is related to the above-mentioned point that the audience of blue chip NFTs is mostly long-term holders. Who keeps the NFTs in their wallet for a long period of time? To store blue chip NFTs for a long time, hardware wallets are the best option. Because mostly these NFTs are worth thousands of dollars.

So keeping them online is not a safe approach. After purchase transfer your blue chip NFT to your hardware wallet and make sure this is not linked to any online resources. Keep your private keys offline. Write private keys on different papers and save them in different places. If you want to know more about storing your NFTs safely. I have written a complete guide on how you can store your NFTs safely.

Conclusion:

I hope you have learned what are blue chip NFTs and how you can identify them. I have also mentioned some top blue chip NFTs examples to help you to understand easily. Finding blue chip NFTs requires a lot of research and experience. I suggest you learn first and do your own research before jumping into any NFTs project. If you find this post helpful let me know in the comment section or you can ask your queries as well.  You can navigate to the NFTs category in my blog to learn more about NFTs.

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