Comprehensive interpretation of NFT derivatives
NFT derivatives are NFT series that resemble popular NFT projects.
Although some NFT derivative projects were not originally created to build long-term value or interactive communities, not all NFT derivative projects are just for cash grabs.
When you contemplate buying any digital asset, you should always do your own research to make sure you understand the risks involved and know what you are buying.
In 2020, non-fungible tokens (NFT) were born, and since then they have overshadowed many industries and become the cultural trend of the times. Now the market value of non-fungible tokens (NFT) has reached billions of dollars.
If you continue to pay attention to the NFT market, you must have encountered NFT series that resemble popular NFTs.
These NFTs are called NFT derivatives, and they usually contain the attributes of existing items without introducing more new elements.
Let’s quickly sort out everything you need to know about NFT derivatives.
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What are NFT derivatives?
For those new to the industry, NFTs are cryptographic tokens that represent unique digital assets hosted on a blockchain.
Each token is a unique asset that is either fully digitized or a tokenized version of a real-world object such as real estate or clothing.
Additionally, each NFT contains unique metadata and identifiers, making it in stark contrast to other tokens.
This ensures that they are virtually impossible to tamper with or counterfeit. Currently, the most common use case for NFTs are collectibles, such as digital art .
NFT derivatives refer to NFT series that incorporate the attributes and styles of popular NFT items . In addition to visually resembling the original NFT, the names of the derivatives are also similar.
Popular NFT series such as the Boring Ape Yacht Club (BAYC) and CryptoPunks are the main source of inspiration for numerous spin-offs.
Some NFT derivative projects even absorb elements of two original projects at the same time.
For example, the Association of Derived Apes (SODA) is an NFT derivative project that combines the characteristics of BAYC and Doodles.
Most derivative projects are not authorized by imitation NFT projects, that is, they use elements of various versions of existing projects.
Unless the original project issues a formal cooperation notice, you can assume that all derivative NFTs are not official.
However, the founding team of popular projects may release follow-up releases in the form of project by-products.
Such NFT series are often referred to as official derivative projects.
For example, the Mutant Ape Yacht Club and the Boring Ape Kennel Club are both official projects released by the founders of BAYC, and they both have NFT utilities such as exclusive community access rights and unique member benefits.
Why are people keen to create NFT derivatives?
NFT derivatives are in the ascendant, which is closely related to the widespread adoption of NFTs around the world. T
he NFT community has mixed opinions on derivatives projects, and there is no consensus.
Some see them as plagiarisms from existing projects, not original works, while others see them as a tribute to emulating the original.
In any case, the original intention of digital creators to create derivative projects may be varied.
Moreover, there are essential differences between unofficial derivative projects (also known as affiliated derivative projects) and by-product releases released by the project founding team.
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NFT Derivative Projects: Pros and Cons
As NFTs become more popular and their market value soars, some creators create derivative NFTs to profit from their similarities to popular projects.
Such derivative projects usually exhibit the characteristics of running away scams.
Their primary goal is to sell as many NFTs as possible.
The individuals or groups behind such spin-off projects may hype their series on social media, promising exciting roadmaps and other enticing benefits, but with no intention of delivering on any promises even after Mint Day.
Most buyers are so duped that they discover it too late, which is embarrassing.
The best way to avoid falling victim to a running scam is to do your own research (DYOR).
Surveying project teams and assessing their long-term plans is a time-tested rule.
If you browse the Binance NFT website and find a series that does not meet the content guidelines, please report it.
Binance will investigate and if they are found to be infringing any copyrights or appear to be a scam, Binance will remove them.
Although some NFT derivative projects were not originally created to build long-term value or active communities, not all NFT derivative projects are just for cash grabs.
At times, it can also be a fun way for community members to explore their creativity.
For example, Noodles and Jenkins the Valet are both NFT derivative projects that have built lasting value and are backed by original collectible founders.
In addition, NFT derivatives projects with a solid roadmap and long-term plans have the potential to diversify the industry and even lower the barriers to entry for new collectors.
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Conclusion
While derivatives may help diversify the NFT market, NFT compositions vary.
Some are created with the original project in mind, while others are a tribute to the original project.
At this point, you have basically understood what NFT derivatives are and how to identify them.
Please remember to always do your own research and don’t need to be afraid of missing out on opportunities (FOMO).
Before buying any digital assets, you should make sure you know the relevant risks first.
Artists, digital creators, and NFT enthusiasts explore and trade digital collectibles through Binance NFT.
Welcome to browse and discover high-quality NFT through this platform . Welcome to continue to pay attention to NFT-related developments through the Twitter and Telegram accounts!
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April 24, 2024
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