Trading NFTs has proven to be a very profitable vocation during the 2021-2022 period. Although it can provide a lot of opportunity for those flippers and long-term holders alike, it is much riskier than trading ERC20/CRC20 tokens, which are fungible, more liquid, and widespread. The expertise needed for investing in NFTs is different from what came before.
In the case of NFT markets, characteristics like rarity, aesthetic appeal, the myth of the community, etc., present a different mechanism than trading cryptocurrencies.
Let’s look at the most famous and trustworthy NFT market on Cronos Chain, Ebisu’s Bay Marketplace, meanwhile dissecting the properties, opportunities, and features Non-Fungible Tokens introduce to the cryptocurrency ecosystem, mainly rarity rank.
Ebisu’s Bay Homepage
There are clickable selections and informative sections on this screen, excluding the navigation bar, which we will come to later. Clickable selections follow: Explore, Become a Creator, and Become a Founding member. Informative sections follow Volume, NFTs Sold, and Active Listings.
“Volume” signifies how much value has been exchanged between parties while trading NFTs.
“NFTs Sold” is how many pieces have changed hands.
“Active listings” indicate how many pieces are on sale at the moment.
“Explore” brings the user directly to the marketplace, where they can browse exhibited pieces.
“Become a Creator” points the user to an application page where they can apply to make their NFT drops.
“Become a Founding Member” is a bit distinctive that brings one to the native NFT project to the Ebisu’s Bay that enables owners of those NFTs to share profits made from the trades taking place on the platform.
Ebisu’s Bay Marketplace Page
When clicking on the “Explore” button or the “Marketplace” spot on the navigation bar, the user is pointed towards the Marketplace of Ebisu’s Bay. At first glance on the page, the trending pieces of trending collections would be seen. This page contains a filtering function with two parameters: the first one allows users to pick the collection they want to list, and the second one enables users to sort the NFTs listed on the marketplaces. The NFT sorting function has the following options: the Latest listings, Price(Highest), Price(Lowest), Rank(Highest), and Rank(Lowest).
Ebisu’s Bay: Curated Application Form
“Become a creator” bar on the homepage of Ebisu’s Bay is a gateway to an opportunity for artists, founders, and project managers to be approved by the platform to make their drops. They can fill up the short form to be approved and become a curated artist. Becoming a curated artist boosts an artist’s authority as they are accepted by the platform, which subtly signals some small form of endorsement.
Ebisu’s Bay — Founding Member Benefits
Ebisu’s Bay offers native NFT tokens that give their holders a couple of benefits and utilities. As they stated on their Medium.com Page, Founding Member (FM)NFT (10k NFTs) holders can expect the following benefits:
- Exclusive access to the NFT launchpad, this includes potentially cheaper mint prices and access to launch features
- Ability to use a referral code and refer your friends for a bonus in CRO: Your friend gets a 5% discount while you get that 5% in CRO
- Reduced Service fees of 50% (translates to 1.5% instead of 3%)
- Access to Ebisu’s Bay Beta features
Ebisu’s Bay — VIP Founding Member Benefits
Ebisu’s Bay VIP Founding Member Benefits offer; basically, all regular Founding Member Benefits plus 0.75–1.5% of the sale price of any given NFT trade made on the platform will be distributed among all VIPs NFT holders for those who stake their VIP NFTs.
Collection division on the navigation bar brings the user to a rank page where NFT projects are sequenced by volume. Other metrics can also be seen. Total sales took place as how many pieces have been sold, the average price derived from the mean of the selling price of all sold pieces on the marketplace, actively sold NFTs, and the floor price.
The floor price is the most relevant metric for most investors, which acts as a resistance price measured by the lowest price required to be paid, allowing at least one piece of the collection to be owned. The higher the floor price, the more exclusive the collection and its community become. Because the lowest amount should be spent to be a community member rises.
A Project’s Attributes
There are particular attributes to the most PFP NFT Collections. Attributes divided by traits create a wide variety of combinations that make each NFT unique, meanwhile the fundamental theme is common.
For example, there are seven attributes for the Croskull PFP collection. Background, body, eyes, hat, nose, skull, and trait count. Those attributes differ significantly; the background attribute has 11 different varieties. Tens of thousands of unique pieces could be created by combining those attributes with different sets of sorts. In the case of Croskull, they only created 6,666 pieces by wilfully designing them to have combinations that breed rarity.
A Piece’s Rarity
Assessing an NFT PFP piece has three stages. The first one is the overall popularity and community strength of the NFT collection; the second one is the piece’s rarity derived from its attributes and traits; the third one is the aesthetic quality of the piece.
Marketcap and floor price cover the assessment and valuation of a collection. Rarity rank should be carefully considered when it comes to the valuation of a piece.
Rarity rank is determined by combining the rarity of individual traits and procuring the overall score. The smaller a trait’s spread in the collection, the rarer the piece. The number on the rarity rank section is a signifier of the given piece’s rating. For example, if the rarity rank is #1, that piece is the rarest NFT in the whole collection.
There is also a subtle way of valuing pieces by their aesthetics and the memetic cue they constitute for the appreciators of the art piece. There can be NFTs more expensive than mathematically rarer ones just because their aesthetic qualities are more favorable to the beholder of the eye who sees them. They might stir up more appreciation by distinguished qualitative possessions instead of the qualitative traits.