When CryptoKitties came out, it was hilarious to me. “Wait a second,” I thought. “So, you mean this JPEG can have sex with this JPEG and make a new baby JPEG? Say what?” When CryptoPunks started out in 2017, they seemed silly to many. They were just 128 X 128 pixels. Who cares about that? They weren’t really cool until Gary Vee had a mastermind call with influencers and said, “Crypto Punks are going to be huge, go get a bunch of them.” They went in and cornered the market and raised the prices.
Bored Apes was right around the same time as Gary was launching his project. They got big influencers together and said, “Let’s get these.” And so they all bought those, the prices rose over time. At one time, these cost 2 Ether (ETH). That was a lot back then! Now the floor is like 80 ETH. All these NFTs — CryptoKitties, CryptoPunks and Bored Apes — made big bucks.
Related: Which NFT collection has been the most profitable?
When I chatted with Gary early on in 2021 when he was thinking about NFTs, we discussed launching on Wax, which is a blockchain specifically for NFTs. It’s like WalMart but for NFTs. NFTs are much cheaper on Wax than Ethereum. Gary would go on to do a great job raising $90 million on his own putting them on ETH. I just don’t like those gas fees on ETH so much — it is a big drain.
I started to see the implications of what could be with NFTs. A lot of people look at NFTs as mere images; they’re just JPEGs, no different from a screen shot. There is so much more to NFTs than that, because they can truly unlock experiences for you. NFTs represent the next level of digital rights management. Essentially, your NFT can be video, images, text, audio, links, AR, VR, 360 video, and they can be a combination of all of those. They can unlock certain venues based on geo-proximity, etc.
An NFT can evolve over time, too. You can have a little baby NFT, maybe a little baby egg, which then turns into a baby dinosaur. It then turns into a toddler dinosaur, an adult dinosaur, and it can mate…