NFT space is booming, and many investors want to profit from its rise. However, picking individual NFTs is not for everyone.
For one, NFTs from more popular collections are really expensive. For example, the cheapest Bored Ape goes for 100 ETH, or $300,000! This makes investing in the space difficult for small buyers.
Moreover, picking the right NFTs is not as easy as it seems. There are thousands of NFT projects that drop every day. The sad reality is that most will drop to zero.
Finally, even if a buyer picks the right NFT, he might have trouble selling it. NFT markets are typically less liquid than coin markets. To get the best price, you need to find a buyer that wants your particular NFT, not just any other.
This is why many investors opt for NFT tokens. Tokens allow users to bet on the success of NTF space without having to pick individual NFTs. NFT tokens are much easier to sell and offer a more stable way of investing in NFTs.
ApeCoin
The next logical question is which NFT token to invest in. For many, ApeCoin NFT seems like the obvious choice.
The token dropped with endorsement from Yuga Labs, the undisputed leader in the NFT space. The NFT giant owns Bored Ape Yacht Club (BAYC), by far the most valuable NFT collection out there, with a whopping $3 billion in estimated market cap.
Moreover, its Mutant Apes hold second place by the same metric. having recently acquired the intellectual property over CryptoPunks, they are quickly creating an NFT monopoly.
Introducing ApeCoin ($APE), a token for culture, gaming, and commerce used to empower a decentralized community building at the forefront of web3. 🧵
— ApeCoin (@apecoin) March 16, 2022
As for utility, Yuga Labs said that it would make ApeCoin the “primary token for the Bored Ape Yacht Club ecosystem.” Moreover, the coin is a governance token of the ApeCoin DAO, a decentralized autonomous organization in charge of the token. Token holders will vote based on how many ApeCoins they hold.
The ApeCoin drop was also a way for Yuga Labs to reward BAYC holders, which received 15% of the token supply.
Since its launch, the token has had a bumpy ride. However, prospects for the future seem bright. Yuga Labs is honoring its commitment to put ApeCoin at the center of its ecosystem.
The merch store is officially open for BAYC and MAYC members: https://t.co/KziNoAn018. Happy shopping, apes!
— Bored Ape Yacht Club 🍌 (@BoredApeYC) March 28, 2022
On Monday, the company announced an exclusive merch store for BAYC and MAYC members. To buy the member-exclusive merch, they will have to pay in ApeCoin. So far, holders could use the coin in an Animoca Brands game Benji Bananas.
With backing from a giant like Yuga Labs, ApeCoin seems set to become one of the blue-chip tokens. The coin is already 41st by market cap, ahead of Sandbox’s SAND token, and lagging behind Axie Infinity token.
PFP Token – Metaverse Suite Token
Investors that want to strengthen their NFT token portfolio may want to also consider other, smaller-cap projects, such as the upcoming PFP token.
PFP is a governance and utility token for OpenPFP, an upcoming NFT marketplace with a particular focus on the Metaverse. The marketplace will host profile picture (PFP) NFTs on the Ethereum blockchain.
The company launching the token is a Metaverse company Radio Caca (RACA), which focuses on developing a scalable and user-friendly Web 3 ecosystem. Radio Caca already has a thriving NFT marketplace for its own in-game Metaverse assets.
Now, it wants to open its door for creators throughout the NFT space that want to join the Metaverse.
OpenPFP creators say it will be a truly open NFT marketplace. They want to give creators more options for listing and reduce the risk of censorship. This is especially important now that OpenSea, the biggest marketplace out there, is becoming more centralized, and routinely delists projects it doesn’t like.
Moreover, RACA wants to provide support for all NFT creators that aim to launch their NFTs in the Metaverse. This has become a standard for NFT projects and is typically the most costly item in their roadmaps.
In OpenPFP, creators will have access to tools and support from the RACA team to launch a Metaverse community in its Mars-themed Metaverse. RACA says that this will allow them to launch at a fraction of the cost and time compared to alternatives.
And they will not be alone. Recently, RACA enlisted world-famous rapper French Montana as its representative and a creator of the USM Metaverse.Â
OpenPFP Vampire Attack
To really put a dent in OpenSea, Radio Caca has announced a more aggressive marketing strategy to incentivize users to move their NFTs from OpenSea to OpenPFP.
Specifically, 20% of all PFP tokens will go to OpenPFP users in July, as well as to some large traders on OpenSea and LooksRare. 30% will go to $RACA stakers and liquidity providers, and an additional 30% will go to node operators, while the rest will go to DAO’s expenses, liquidity, and launch contributors.
Moreover, OpenPFP will keep the trading fee at 0% until April 15 of 2022, and at 1% until July 2022. Afterward, the trading fee will be 2%, lower than OpenSea’s 2.5%.
This is what crypto insiders usually call a “vampire attack.” How effective are vampire attacks? Recent examples show that they can be very effective.
Back in 2020, decentralized exchange SushiSwap challenged its competitor Uniswap probably the most notorious vampire attack ever. Specifically, it offered SUSHI tokens to all users that moved their funds to the exchange.
As a result, Uniswap users moved some $1.2 billion in funds to Sushiswap, halving its total volume locked. Uniswap has since recovered, by launching a token of its own. Still, the attack was a major success for Sushiswap, cementing it as one of the major players among decentralized exchanges.
The same approach could work for OpenPFP, giving it enough users to kickstart the platform. On the other hand, lower fees and its Metavese Suite offering could keep NFT creators on the platform, which will likely push the PFP token up.
APE or PFP?
Both ApeCoin and PFP are tokens that are, in their own way, tied to the future of the NFT space. ApeCoin comes from a large brand, while PFP is a bet on the underlying infrastructure.
ApeCoin seems like a relatively safe bet. Its creator, Yuga Labs, is not going away any time soon. However, it is already a pretty large token, meaning that its upward momentum is somewhat limited.
Investors that have a higher risk tolerance and are chasing high returns should look into OpenPFP. The project is innovative, focused on utility, and comes from a strong dev team.
Ultimately, whether you invest in APE or PFP, make sure to do your own research and only invest the amount of money you can afford to lose.
Disclosure: This is a sponsored press release. Please do your research before buying any cryptocurrency.
