While exploring the vast world of NFTs, you may hear the term “blue chip” thrown around quite often. And if you are an NFT collector or investor, then you should know what a blue chip NFT is and why they are so important.
Blue-chip assets have consistently outperformed in the long run, irrespective of market fluctuations. Blue-chip NFTs, from the perspective of the general public, are steady and continuously appreciated throughout time. The Bored Apes Yacht Club, Cryptopunks, and The Sandbox LAND are a few examples.
Similarly, “blue chip NFT” means a non-fungible token in which you can safely invest. Because the appeal or value of that NFT is not going to fade anytime soon for the people on the blockchain. Instead, it will only increase with time.
NFT projects that show promise of providing long-term returns on their investments are considered blue-chip NFTs. If someone invests in these NFT projects, they will probably make a nice profit if they sell them in the future.
Etymologically, the origin of “blue chip” can be found in poker. In three-color poker sets, the chips are usually red, green, and blue. During a game, this blue chip will hold the highest value when compared to other colors.
If we look at the traditional world, examples of blue-chip companies are Costco, Coca-Cola, Amazon, Apple, Tesla, Tata, Reliance, etc.
If you have money and these companies are willing to sell their stocks, you can invest in them and logically hope to benefit in the long term without any worry of losing your investment.
The case is the same in the world of NFTs and digital finance. NFT projects like Crypto Punks, Bored Ape Yacht Club, Cool Cats, and VeeFriends are allowing participation in their ventures, meaning you can safely invest some cryptocurrency and have a rational expectation of success in the coming future.
Blue Chip NFTs Compared to Classic Blue Chip Companies
There is one noticeable difference between blue-chip NFT projects and blue-chip companies in the physical world, and that lies in the type of the companies.
Blue chip NFT brands compared to the classic companies we know and love today are really not much different. The only things that are different are the technology platform and the form of investment. However, the standards that make up a blue-chip brand are the same for both NFTs and companies that are publicly traded.
Usually, blue-chip companies that are publicly traded have been operating for quite some time now. These companies have established themselves in society, and their social impact has a huge effect on people wanting to buy their stocks.
What Makes a Blue Chip NFT Blue?
You can gather from the above discussion that investing in a blue chip NFT is somewhat trickier than investing in a blue chip stock. Because you probably have to figure out which is going to be a blue-chip NFT project on your own. Therefore, it is important that you first understand what makes a blue-chip NFT.