Can NFT Projects Resurrect?

There is no doubt that 2021 will be written in golden letters in the history of the crypto world. In addition to the previous “Bull run,” where in November we got a new “All time high” of Bitcoin (68,790 USD), 2021 will be remembered for something else. And that is the expansion of NFT and the influence of a new type of virtual value. Everyone remembers the frenzy surrounding the BAYC (Bored Ape Yachting Club) collection. The value of one NFT at one point exceeded 500,000 USD. Many famous musicians, athletes, and actors kept a picture of the NFT from this collection on their social media profiles. BAYC quickly became a status symbol, and immediately after that, the NFT market expanded, where each new collection tried to overtake the famous “monkeys.”

However, three years later, the situation is drastically different. The NFT market is experiencing a problematic “bear market.” Unlike the crypto world, many cannot reliably claim whether there is a return to this branch of the crypto industry. However, based on the facts and our research, we made an article about our predictions. What’s next in the NFT market, and is it worth investing in NFT tokens, and in which projects?

What is an NFT?

NFT (Non-Fungible Token) is a digital token based on blockchain technology. What separates it from cryptocurrencies is its uniqueness and indivisibility. This means that each NFT has a unique identity that differentiates it from other tokens. Unlike ordinary tokens that can be exchanged for each other in terms of value, NFTs are irreplaceable. Each NFT carries its unique value and characteristics. NFTs are often used to represent digital artwork, music, video games, or other digital resources. Their uniqueness enables transparency, immutability, and security regarding the ownership of these digital assets via the blockchain. NFTs have grown in popularity, allowing artists, creators, and digital content owners to monetize their works innovatively.

NFT Market in 2021 vs 2023

However, it should be considered that this negative trend was gradual. In 2022, CoinGecko’s Crypto Industry Report showed that digital art volumes declined quarter-over-quarter. Dropping over $10 billion from Q1 to Q4.

Famous IRL Brands in the NFT World

In 2021 and 2022, we could see an increasing number of NFT collections and companies’ interference from the real world. With the decrease in market volume, the desire of new users to enter this market also decreased. Many existing collections have put themselves in a “Stand by” position, waiting for a better moment to work on their project, given the current lack of “Hype” around NFT. This type of business has created dissatisfaction among many owners of NFTs. Especially if the items from the pre-created “Road Map” have not been complied with.

For example, in its project description, Dolce & Gabanna guaranteed its holders gifts in the form of “IRL” products of this brand (t-shirts, sweatshirts, sneakers) at least once a year. Although they kept their word in the first year, they stopped doing that later. For many products, NFT users had to pay huge amounts of tax on delivery. Although DG refunded that amount to all holders, they did not dare to do this giveaway again. Many owners of their NFT saw this as a form of fraud, considering that this was one of the main reasons why they bought their tokens.

What Happened?

Over time, NFT turned into a “copy-paste” market where everything boils down to current “Hype,” unreasonable promises about a potential game, and “staking” of NFT that brings virtual tokens with no actual use value. Specific collections that have been on the market since the beginning have understood the point of differentiation in relation to the competition and the importance of adapting to the current situation. These very collections show that even in times of complete stagnation of NFT, it is possible to progress and generate profit for its holders. They can be the subject of purchase consideration under challenging times for the NFT market. In the following text, we will give you examples of some of the projects that were rightfully on our radar:

1. Pudgy Penguins

Pudgy Penguins is a collection of 8,888 NFT penguins on the Ethereum blockchain. It was founded in July 2021 by a group of students and sold for 2.5 million dollars in April 2022. So far, this collection has made a volume of 282,000 ETH. The important point is that the creators of this collection had 5% “creator’s earnings” from this amount. Pudgy Penguins has built a strong community and achieved widespread popularity thanks to this adorable intellectual property, as well as cute content and products.

In addition, “Penguins” were the first to go a step further, appearing in the real world. More precisely, the plush toys of these cute penguins can be bought in many markets across the USA (planned for Europe as well), making them the first NFT project to succeed. Since then, “Pudgy Penguins” has been constantly working on improving its brand, and sweets, clothes, and the like are expected. Although it is not yet official, the assumption is that all holders of this NFT will have passive income from all “IRL” sales. It could literally be understood as if you own the shares of this company.

The best indicator of how good this move was is the fact that the NFT price of this collection has jumped from 3 ETH ($6,900) to a whopping 16.75 ETH ($38,000) since September 2023. Undoubtedly, if they continue at this rate, they have a huge chance to overtake the most successful collection of all time, Bored Ape Yacht Club, whose value, unfortunately, is in constant decline.

2. Jack Butcher

Although the subtitle should have included the collection’s name, we could not decide which of this creator’s projects was more successful. Especially considering that Jack turns everything he touches into gold. We can safely say that Jack Butcher is the person who prevented the decline of the NFT market for quite some time. At the beginning of January 2023, a huge market saturation was already felt, and every subsequent project collapsed very quickly. Nevertheless, a free collection appeared under the name “Checks” by Jack Butcher, who was already a well-known creator in the web3 world with a specific way of thinking and creating.

Within a few weeks, the NFTs of this collection went from zero to a whopping 2.8 ETH. Everyone wanted to follow the new trend imposed by Jack, the so-called “Open edition.” The difference compared to the classic collections that came out until then was that there is no maximum number of NFTs, but that the mint is done in a certain period and that at the end of that time, we find out what the size of the collection will be. It was the same with Jack’s other project, “Opepen”. We can claim that it is one of the collections that, despite the “Bear” market, is working on its own project.

Opepen

“Opepen” is a collection of 16,000 NFTs. In the coming period, Jack Butcher will do visuals for a series of 80 pieces each (200 sets in total). Holders “apply” themselves if they want to participate in the lottery so that their undiscovered Openpen gets just such a look. What’s even more interesting about it are Jack’s collaborations with other projects, so we’ll say something that shouldn’t be surprising, which is that the “Openpengs” set in which Butcher collaborated with the “Pudgy Penguins” has a token value from 5.9 ETH.

For this reason, buying this project can be a good idea. Knowing that with every announcement of a new set, the price of the “floor” rises. If you are lucky enough to be among the 80 drawn holders, you can earn huge money. It’s up to you to judge whether that set has potential. Our advice is to rely on those collaborating with some projects or for which you see that many people have applied for “reveal.” The current price of “unopened” Opepen is about 0.34 ETH (about $880). It should be taken into account that Jack’s notifications related to the project have been known in the past to make instant pumps up to 1 ETH.

3. Crypto Mories

Crypto Mories were minted at the peak of the 2021 Bull market. Their emphasis was on mental help for their holders, offering free therapies to all holders of their token. With a strong community, quality work, and a transparent project owner, Mories quickly came to the center of the attention of many NFT fans. Then they reached an “All time high” of almost 2.5 ETH. Nevertheless, the “Bear” market hit Moriese like all other collections. The price of this collection has plummeted. The fact that all marketplaces have abolished the mandatory payment of “royalties” (remuneration for creators) did not help them either.

The team continued to work even in such conditions, and relatively soon, we received confirmation of an entirely new ecosystem. It’s the same with Road Map, which has an accent on a quality AAA game. The fact that they have already shown “sneak peek” shows that it is a serious project, not just a promise. In addition, the mobile version of Morie game was designed by the team that worked on the legendary Sony game “Crash Bandicoot.” The game should be released already in the first quarter of this year, which is another big thing.

In addition, a token is also planned to connect the entire new Crypto Mories ecosystem. There is no doubt that the support of everything will be holders. It is expected that they will receive many awards for the trust they have had in this project for years. This information caused the price of Crypto Mories NFT to jump from 0.04 ETH to 0.17 ETH in fifteen days. Undoubtedly, the release of the mobile game and new notifications can lead to a new price increase.

Conclusion

The NFT market is currently in the state where the crypto market was in January 2023. At the peak of the “Bear” market. Unlike cryptos, many investors fear whether NFTs are a “one-time miracle” or they will have their bull and bear market cycles like cryptos. Specific experts believe that a new pump of the NFT market can be expected after the peak in the crypto market. Considering that before the start of Bear, many will want to “transfer” their money to something else.

If we go back in time, it was similar in the last cycle. NFT experienced its peak in 2022 after the crash of the crypto market. However, there are no guarantees for this. So when choosing a collection you want to invest, it is most important to check whether the founders are actively working on the project and whether they inform their holders about further steps via social networks such as Twitter and Discord. Everything else is pure gambling. You have more chances to earn money if you play in one of the popular crypto betting sites.

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