With over $200 million in sales in two days, why did NFT project Moonbirds become a hit?

Industry News 1years go (2022) Dexnav

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With over $200 million in sales in two days, why NFT project Moonbirds is a hitWhat is it?

Despite a muted performance in the crypto trading market, the weekend was not quiet in the NFT space: tech entrepreneur and venture capitalist Kevin Rose's PROOF Collective launched a new NFT project on SaturdayMoonbirdsThe collection exploded within two days of going live, and OpenSea, the NFT marketplace, shows that as of this writing, the NFT programMoonbirds secondary market volume has exceeded 70,000 ETH (nearly $212 million).

With over $200 million in sales in two days, why did NFT project Moonbirds become a hit?

opensea charts

NFT Project Moonbirds is Proof Collective's first PFP NFT project

In short, similar to projects like CryptoPunks and Bored Ape Yacht Club, Moonbirds is a collection of 10,000 pixel art birds on the Ether blockchain, each one unique and with different rarities and characteristics. What's more, the longer you hold an NFT, the more each NFT earns a private club membership and other benefits.

According to Moonbird's website, the project is "utility- and community-based". As it says, the series has created a strong community (the Twitter account has nearly 160,000 followers).

The NFT project Moonbirds series was launched on April 16 at 12:00 p.m. ET, and although the initial mint price of 2.5 ETH (about $7,600) was not cheap, it sold out quickly, generating $66 million in revenue from the initial mint.

Sales of Moonbirds on the secondary market surged over the weekend. NFT marketplace OpenSea saw its largest volume in more than two months on Saturday, worth more than $177 million, according to Dune Analytics.

More importantly, Moonbirds has surpassed some of the top NFT programs like Doodles and Clone X. At the time of writing, its floor price has climbed to 18.59 ETH, compared to 16.77 ETH and 18 ETH for Doodles and Clone X respectively.

These are impressive achievements for a fledgling program that launched only two days ago. So what is the reason for its explosion?

Founding Team Background

Kevin Rose, Ryan Carson and Justin Mezzell form the founding team of Poof Collective, all of whom are well-known figures in the Web2 and Web3 space.

Kevin Rose is currently a technology venture capitalist and partner at venture capital firm True Ventures and host of the PROOF and Modern Finance podcasts. Previously, he founded the social news site DIGG, the intermittent fasting app ZERO, and the meditation app OAK. Rose was also a general partner at Google Ventures and an angel investor in Twitter, Facebook, and Square.

Ryan Carson is a prominent entrepreneur and investor, founder of three companies and a non-profit community, and Justin Mezzell is an illustrator and designer whose clients include tech giants such as Google, Twitter, Facebook and PayPal.

Kevin Rose's successful investment background makes users very optimistic about the future of the project; after all, it is relatively safer to bet on a team with a proven track record of success in the NFT space.

Poof Collective

Proof Collective is Kevin's most significant foray into the NFT space, and the Twitter account Crypto city explains, "Many of the top founders, artists and collectors in the space believe strongly in Kevin's vision to sell NFT membership passes with the intention of 0 ". In total, these members hold nearly 154,000 NFTs, including several blue-chip projects such as CryptoPunks, Bored Apes, Meebits and Art blocks.

To become a member of Proof Collective, an individual must hold a Proof Collective NFT. These NFTs grant access to the Proof private Discord, early access to the PROOF podcast, live events, and more, and are highly sought after for these reasons.

In addition, The Proof Collective has launched an NFT collection called Grails. This collection was created in collaboration with 20 artists and features 20 unique pieces of artwork. These are free and only available to Proof Collective pass holders. These artists include some of the most popular names in the field, such as Hackatao, Mike Shinoda, Larva Labs, and Gary Vaynerchuk.

Moonbirds is Proof's second original NFT project and first collection of 10K PFPs (profile pictures). With Proof's rich history, Moonbirds drew a huge wave of traffic even before its release.

Practicality of Moonbirds NFT

When it comes to Moonbirds, another major reason for their success is practicality. First of all, Moonbird holders will have access to the Proof Discord, which means the opportunity to interact with the founders of Proof and other members of the team. Since Proof's members include some of the biggest names in the NFT space, this is a great opportunity for people to make connections and learn more.

In addition, Moonbird holders will have access to Moonbird-related product launches, parties, and offline events. You will also have access to future Proof projects, including the upcoming metaverse platform Project Highrise.

Another important aspect of Moonbird is "nesting" which is similar to the pledge mechanism offered by crypto projects. Users can "lock and nest" birds in their wallets for additional earnings or rewards, but in this case Moonbird collections do not have to leave their personal wallets, but users cannot sell NFTs during nesting.

The longer you Nesting NFTs, the more time you will unlock new levels that will bring more revenue to the user, such as merchandise, stickers, etc. Due to the many potential benefits, collectors may keep their NFTs. Due to the many potential benefits, collectors may keep their NFTs, which, as Cryptolocity points out, may even lead to "supply shock".

All of Moonbirds' minted funds and secondary sales royalties will go into the PROOF collective treasury and fund future initiatives such as content, exclusive experiences and the NFT conference scheduled for 2023.

Kevin Rose tweeted, "We're designing moonbirds differently and we want to offer the largest share of rewards to long-term holders. We see a future that unlocks utility and benefits with your diamond hands."

Controversy

Crucially, however, there is little information about what Proof actually intends to build beyond the so-called VIP Social Club. While Proof has promoted some NFTs and runs a small Discord server, its plans for future projects still lack specificity. So far, the team has only announced plans for a series of offline community gatherings and the metaverse platform Project Highrise, but a detailed roadmap has yet to be made public.

On the other hand, there is the much-criticized "wash trade". The well-known Twitter account NFT Ethics suspects that Proof members may be "laundering" their NFTs - selling back and forth between wallets controlled by the same trader to drive up prices. "Money laundering is so prevalent in many NFT programs that it's not even worth noticing anymore.

Interestingly, the NFT collection previously created by Justin Mezzell, co-founder and chief product officer of PROOF, has also skyrocketed as a result of the moonbirds craze, with the price of his earlier Solana NFT series Grim Syndicate floorboards jumping from 2 SOL ($200) to 13 SOL (about $1,300) at the time of this writing.

In an industry full of anonymous traders, projects that are spiked by prominent investors are usually hotly anticipated, and with the value of the series likely to soar as the Proof team reveals more utility in the future, will Moonbirds be a short-lived breakout hit or the next big blue-chip project with sustainable growth? Only time will tell.

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