2 - 4 minute read
The NFT market continues to be a buzzworthy territory, with new projects relying on a variety of mechanics to build interest. Established projects like Bored Ape Yacht Club and Azuki continue to generate trading momentum, while newer offerings like Checks VV and This Artwork is Subject to Change have also caught the attention of traders. However, there have been few projects that have gained widespread appeal in the current market.
Enter Nakamigos, a 20,000-edition NFT project featuring pixelated avatars launched last month. The project quickly gained popularity, outpacing Bored Ape Yacht Club in lifetime trades within days of its mint. At the time of writing, the project has done 21,035 ether ($39 million) in trading, with a floor price of 0.5 ETH ($930). The project grants holders full commercial rights to their characters. After the announcement of Nakamigos, several derivative projects referencing the brand began to emerge. These include Nakamigas, which features female-presenting pixelated avatars, and Magamigos, a collection of 5,000 pixelated avatars depicting former US President Donald Trump in the wake of his indictment.
Understanding the Nakamigos Hype Cycle
Nakamigos was created in March of 2023 by an anonymous collective called HiFo Labs. Little is known about the project’s founders, but it was created by an “OG” crypto artist with years of experience in digital art. The collection quickly gained traction due to its connection to Sartoshi. In a public stunt, the Nakamigos team gifted 24 NFTs to crypto influencers, going as far as to amplify the act via a paid exposure campaign. Notably, NFT artist Beeple pledged to create “chapter 2” for Nakamigos if its floor price hit 1 ETH.
Magamigos and the Shady World of Derivative NFTs
As we’ve seen in the NFT market recently, major cultural events and projects related to popular culture can generate interest and trading volume in NFT projects. However, with the success of these projects comes the proliferation of low-brow derivative projects that are often devoid of long-term value, or worse, end up being a rug pull. In the hours following former President Donald Trump’s arraignment on Tuesday, his