Cryptocurrency

NFT collections: Types and how to launch them

What is an NFT?

Non-Fungible tokens or NFTs are unique digital items that are issued on a digital ledger (blockchain). Examples of such digital items include artworks, collectibles, games, fashion real estate, etc.

What are NFT Collectibles?

NFTs are often cited as crypto-collectibles which are prized possessions or items sought by collectors because they have the potential of becoming extremely valuable. Unlike fungible assets which need to be similar, crypto collectable tokens are distinct, irreplaceable, and different from other tokens.

What makes NFT Collectibles Valuable?

What usually makes NFT collectibles valuable is usually dependent on certain factors but the major one is the single ownership, that is only one person has the right to a particular asset. Another reason why NFTs collectibles are valuable is celebrity or influencer involvement. This is so because when a public figure owns an NFT, others would want to do the same. Other factors are utility, underlying value, and future value.

Top and Biggest NFT Collections

NFTs are powered by blockchain technology which makes them unique and as well limited. People understand the market concept of scarcity and this is what makes some NFTs extremely costly. There are different categories of NFT collectibles in the NFT markets but we shall be looking at the very common ones below

1. CryptoPunks

CrptoPunks was one of the earliest NFTs projects on the Ethereum blockchain, launched in June 2017. There are 10,000 unique CrptoPunks collectible tokens altogether and are usually generated through an algorithm. This kind of NFT looks like the pixelated version of the punks. Buyers can know the market status of each Punk by the colour background, blue background means the Punks are not for sale, red background signifies that the Punks are available for sale, and those with purple background shows Punks with active bidding. If you are looking for where to buy CrytpoPunk, the place to go is NFT marketplace.

How to create NFT collection like CryptoPunks

In case you also want to learn how to create NFT collection like CryptoPunks, you can do that by following the guidelines below:

  • Choose your art
  • Decide the NFT marketplace you want to sell on
  • Load your wallet with Ethereum
  • Create your NFT clone CryptoPunks and start trading them

2. Bored Ape Yacht Club

There are only 10,000 collections of Bored Ape NFTs on the Ethereum blockchain. Also, the Bored Ape serves as the Yacht Club membership card, and as well grants access to members-only benefits. The minimum cost of entry is 94 ether, which is about $288,000. Bored Ape Yacht Club was developed by Yuga Labs which consists of a team of four people. The four first went by their fictitious names, Gordon Goner and Gargamel, who are the two co-founders, and also No Sass and Emperor Tomato Ketchup who were at the development end. By February 2022, their identities were made known when they posted their pictures alongside their bored.

Bored Ape NFTs. Source: NFT Culture

3. Mutant Ape Yacht Club

Just as Bored Ape Yacht Club, Mutant Ape Yacht Club was developed by Yuga Labs. MAYC is a collection of 20,000 Mutant Apes which is created whenever a Bored Ape is exposed to a vial of Mutant Serum thereby forming a variant.

Mutant Ape Yacht Club

4. Axie Infinity

Axie Infinity is an NFT-based game that was developed by Sky Mavis, a technology-focused gaming video studio in Vietnamese. The game gained popularity in June 2021 when a good number of players earned money through the game thereby generating nearly 780 million USD in sales just within a period of thirty days. Players can earn cryptocurrencies on n Axie Infinity by breeding, raising, trading, and battling with NFTs otherwise known as Axies.

Axie Infinity

How much does it cost to create an NFT collection?

The cost of creating and launching your own NFT collection largely depends on the blockchain you choose. If you use the Ethereum blockchain, for instance, be ready to pay for gas fee to mint your NFT and it actually cost $70 on average can range to around $700 depending on the platform you are using. You are also required to pay a certain fee when selling your NFT, Opensea for instance charges a 2.5 percent transaction fee.

How to launch an NFT collection

So you have seen successful NFT collections like BAYC or CryptoPunks and you want to know how you can create your own NFT connection, but for you to successfully launch an NFT collection, there are some plans and works to be done.

1. Have a strategic plan

Before starting to create your collections, you must know why you are creating them at the first instance, what type of project do you want to create? are they pictures, domains, gifs, etc.

2. Make it limited and exclusive

CryptoPunks or BAYC would have been less valued if they were produced in millions. But because there were just 10,000 each, they were sold out really quickly, why? buyers understand the market concept of scarcity.

3. Aggressive marketing

I used the word “aggressive ” because there are chances that many projects are being released and for you to have your collections to get some recognition, you need to have a strong marketing plan. With social media influencers to help you push the campaign. You should also have a community as well where there would be discussions concerning the project.

Final Thoughts

As you have seen, starting and launching an NFT collection requires some leaves of planning. The hype around NFTs has led many to try their hands at creating their collections. If you also want to launch your NFT collection, you will need to be above the noice.

Which was why I listed the last step as aggressive marketing. It is also important that you stary in the news to see what is trending in the NFT industry. In whatever you do, never rush into launching your collection, but make sure that you follow due process.

 

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