NFTs have been a major topic for the past 2 years plus. As people started to get a grasp on how to trade, build, and consume NFTs as a whole, the Non-Fungible Token era began. It wasn’t long until some unique and ground-breaking projects started to appear, backed by mass hype and FOMO, these became the Meta’s of the NFT scene.
This article was written by Lite – founder of Alpha Omega, you can follow Lite on Twitter to keep up to date with his latest insights!
Meta’s In the NFT Space
For the past 2 years, there have been “Meta’s” to trading NFTs. These would be the likes of 3D NFTs (HAPE, Cryptobull Society, etc.), 2D NFTs (Invisible Friends, BAYC, MAYC, etc.), Anime NFTs (Azuki, Akuma Origins, Everai, etc.), Pixel NFTs (CryptoPunks, The Squids, Moonrunners, etc.), and so much more.
These “Meta’s” would bring the floor prices of pre-existing NFTs up and would create countless new projects under the same name and/or category as the genesis collection starting the “Meta”. Take GoblinTown for example!
What was GoblinTown and its Effect on the NFT Space?
A great example of one of these “Meta’s” would be “GoblinTown.wtf”. Right off mint, GoblinTown went to a surprising .05E floor price. Hype began to build and within 2 weeks, the floor price rose to a whopping 10E floor price. No one would ever expect such a project to grow the way it did.
Typically, after an abrupt increase in hype and floor price of an NFT project, derivatives (copied or adapted from another NFT project) and “Meta’s” go around bringing an increase of trades and talks around the name of the original collection.
“Derivatives” began to flood the NFT market and shortly crumbled soon after the hype was gone. Now, GoblinTown is sitting at a 1.45E floor price and is most definitely one to remember.
The Cause and Effect of “Meta’s”
The use of these “Meta’s” benefits, not just the owner, but the consumer as well. As a newer NFT project with a high floor price and lots of talks behind it, hype begins to grow for other projects relating to the original one that “blew up”.
As stated above, this is amazing for the consumer since buying an NFT with a similar name as the one that started a trend, tends to do well in the short-term, hence making money from that trade. From the owner of that “derivative’s” point of view, he/she can now build a personal name for themself due to the fast and growing hype from the project.
As we have seen from previous copy-cat “Meta’s”, they go by in the blink of an eye. Fast trades, fast hype, and all die quickly. The great power that these “Meta’s” hold is an amazing “season” of profitable flips in the NFT space.
As the famous Anime NFT project “Azuki” gathered hype from a major announcement that grew their floor price (free airdrop to all Azuki holders), other projects arose that soared higher in floor price because it was in the “Anime” genre. It is very important not to miss these “Meta’s” and “Derivatives” and acknowledge a trend when you see one.
Is there a point to being original in the NFT Space?
9 out of 10 NFT projects that fall under the “Derivative” or copy-cat category do not do well in the long-term.
In the NFT space, being original and unique is the most profitable thing you can really do. The reasoning behind this is that people tend to buy into projects that are different from the ones already out there.
A great example of this would be “AI Moonbirds”. At the time, there were no relevant projects under the “AI” category and really exploded due to its uniqueness and one-of-a-kind aspects. Yes, there are always exceptions to everything; some “Derivatives” do quite well, but most fall and crumble.