While the crypto market is sweeping up the ruins of the past few days, the NFT market is back in the black. In particular, Enjin, Chiliz and Decentraland shine with strong price gains – for different reasons.
The second largest cryptocurrency in the NFT sector by market capitalization, Enjin Coin (ENJ), defied the downward trend of the past few days and posted a plus of 36 percent on a daily basis alone. The performance is also impressive on a weekly basis: the ENJ rate increased by 51 percent within seven days. After the token of the blockchain-based gaming platform of the same name slipped further and further as a result of the record high of April 9, the ENJ price is currently giving a loud sign of life. The price explosion is probably thanks to the marketing department.
NFT Airdrop catapults Enjin Coin
As part of the “MyFirstNFT” campaign, the Enjin team carried out an airdrop, ie the free distribution of 50,000 unique NFTs representing digital works of art. Using the Enjin Wallet App, interested parties had to scan QR codes from social media posts in order to receive the free NFT on Enjin’s JumpNet Blockchain.
The aim of this – and basically every – Airdrop was one thing above all: to attract new users to the NFT sector. The calculation worked. All 50,000 NFTs went through the wallet counter within 48 hours, a total of 38,000 new app users, according to the corresponding press release. The campaign also served as market research to show the success of Airdrops “in promoting user acquisition in the broader corporate market”.
“Marketing campaigns are most effective when they are interacting with the audience,” explains Maxim Blagov, CEO of Enjin. In order to stay on course in the long term after the soaring, this interaction should not be limited to airdrops in the future.
Socios draws partnerships on land: Chiliz turns up
Chiliz (CHZ), the third largest cryptocurrency in the NFT area by market value, has also been climbing out of its form for a few days. After a rapid increase in Q1, which brought an all-time high of 0.87 US dollars, the price performance in the following months left a lot to be desired. In mid-April, Chiliz last scratched the 80-cent mark, and since then things have continued to decline with short outliers. The NFT market had cooled down somewhat after a hot start to the year.
However, the token is currently climbing again. The CHZ rate has increased 16 percent compared to the previous day, and 18 percent in the 7-day trend. Further partnerships of the fan token platform Socios are likely to have tipped the scales for the premium.
Last Thursday, Chiliz announced the launch of new fan tokens for motorsport enthusiasts. Aston Martin Cognizant and Alfa Romeo Racing are the first Formula 1 teams to issue fan tokens. A quota of two million tokens was initially issued to fans who had previously registered for the sale via Socios. The tokens should “be available for general purchase on the platform in the near future,” it continues.
The fan tokens minted on the Chiliz Blockchain fall under the category of Digital Collectibles, which give owners voting rights in surveys and polls, as well as exclusive rewards and access to games and competitions. With the new additions, the Socios portfolio now includes 34 sports clubs and associations, including UFC, FC Barcelona, Paris Saint-Germain, Juventus, AC Milan and Manchester City. And the network is currently growing rapidly: the week before, Chiliz announced five new partnerships, including with the Argentine national soccer team and selected Indian Premier League cricket teams.
In the footsteps of NFT market leader Dapper Labs
In the competition for sports licenses, Chiliz has to compete with the market leader Dapper Labs, whose NBA top shot series is one of the most successful models in the fan token sector. The project recently passed the one million user mark and generated a profit of $ 700 million in less than a year, as CEO Roham Gharegozlou stated during this year’s Consensus 2021 Summit.
Socios, which is more oriented towards the European market with its soccer licenses, is catching up more and more. Fan token revenue will total $ 150 million in 2021 alone. For sports clubs, platforms such as Chiliz are developing into promising sources of income that fill the clubs’ already not clammy coffers even further.
Decentraland is modernizing the DAO
The number 3 in the NFT group has recorded a slightly lower, yet respectable growth for a few days compared to Enjin and Chiliz. After the record high of May 7th, MANA, the token of the decentralized game world Decentraland, initially fell sharply. The speedometer currently shows a daily plus of 12 percent, compared to the week the MANA rate has risen by 17 percent in value.
That should be due to two things. On the one hand, the online broker eToro got the MANA token yesterday listed. In addition, the Decentraland Foundation changed the DAO guidelines a few days ago, which are now “more affordable, accessible and useful for all members of the Metaverse”.
MANA and LAND owners can now submit and vote on new proposals at governance.decentraland.org. The submission and voting of proposals should take place without transaction fees. Users no longer have to “wrap” their tokens beforehand: The DAO first records the total amount of LAND and MANA and uses this to determine the weighting of votes. In addition, the DAO was purged. “Forum topics are automatically generated for each poll, which helps foster deeper and more productive debates within the community,” the press release said.
The Decentraland Foundation also intends to introduce community grants, i.e. distributions to community members, in the near future, thereby establishing a further incentive system within the DAO. The front and back end elements have already been developed, now it must be decided in what amount and for what purpose the funds will be distributed.
A tiered system is envisaged that stagger the MANA payout according to the intended use and aligns it with “certain content and development areas that benefit the Decentraland platform”. Above all, content creators and developers should benefit from this.