In the stock market, a blue-chip stock was something that had a consistent history of performance. For example, Amazon or Microsoft shares would continue to profit its investors long-term. The same can be said for NFTs!
Blue-chip NFT projects perform consistently and reap excellent returns for their investors. Some prominent examples of blue-chip NFT projects are Doodles, VeeFriends, BAYC and CryptoPunks.
The big question is: How do you find these projects? Let’s look at all the features of a blue-chip NFT in detail below:
Word of Caution: Please never look for blue-chip projects in the ‘Rankings’ section of OpenSea!
- PRICE HISTORY
First and foremost, a project’s price chart needs to be in a consistent uptrend, as illustrated from the Doodles price chart below.
Moreover, to establish a strong history of consistency, the NFT project needs to survive a bear market. Regardless of market conditions, blue-chip NFT projects will hold their price or not fall too much in bear markets.
- POWERFUL BRANDS
NFT Blue chip projects will have a strong brand identity. Cool Cats, for example, has created a strong brand identity of active ownership and inclusivity for its holders. They frequently do airdrops, commit to returning 20% of all ETH raised to their holders and even value their opinion on the development of their gamified ecosystem.
Powerful brands will keep their messaging relevant to a specific audience rather than jumping on various bandwagons for traction. They will also consistently deliver on their promises to their holders.
- STRONG TRIBES, NOT STRONG COMMUNITIES
Each NFT project you join will tell you they are building a solid community. Blue-chip projects have strong tribes, not strong communities!
The significant difference between a community and a tribe is the group’s commitment to the project values and willingness to work towards that goal. NFT tribes not only hold an NFT for financial gains but are also aligned with the project’s long-term plan and become active participants in the vision of the NFT.
It must also be noted that a tribe takes time to build, which is why NFT projects achieve blue-chip status over time.
Most of the above characteristics will develop over time and cannot be found on the project’s launch date; hence, finding a blue-chip project at launch is mostly a stroke of luck. You might see NFT teams and communities that look promising but cannot survive the long game. For a project to be considered blue-chip, it must consistently rank highly on all the above features.
Good luck picking the next potential blue-chip!