Home NFT Feature NFT Collection: Mutant Cats and DAO Controversy

Feature NFT Collection: Mutant Cats and DAO Controversy

Can you own Blue Chips without being a whale? You might be able to with NFT Collections.

NFT Dao Projects Like Mutant Cats Are on the Rise. But What Are They?

Genre:DAO

Mutant Cats have described themselves as the first DAO that buys and holds blue-chip NFTs. So what does that mean? When you buy a Mutant Cat, you also receive fractions of blue-chip NFT collections. These fractions are distributed daily to holders in the form of $FISH. Think of it like instead of one person buying a Cool Cat for Ξ 6.8 (or USD 27k), a community of people pool their money to buy that same NFT. This community of people has voting rights on the operation of the vault. This means they can say what they want to be bought, sold, and held, as long as the community agrees! Mutant Cats also have some plans for a second drop that ties in with their $FISH token.

 

What’s the Benefit of This?

Most people in the NFT community would love to have a CryptoPunk, BAYC, Cool Cat or Cyberkong in their collection. But with a BAYC floor of Ξ28, for example, that is just not realistic for most people in the space. Buying an NFT that gives access to a DAO, like Mutant Cats, gives you a way to get your hands on these projects.

How Does It Work?

When you buy a Mutant Cat or other DAO projects like HeadDAO or ZombieToadz, you don’t immediately start receiving dividends. You need to stake your NFT on their website in order to start receiving a fixed daily distribution of tokens. These tokens can then be either bought or sold on DEX’s like SushiSwap. At the time of writing, one $FISH token is USD 1.15. Meaning for each Mutant Cat you stake, you could sell your tokens for USD 11.50 a day just for passively holding and staking a Mutant Cat.

A Look at the Truly Insane Numbers

Currently, Mutant Cats are the number one DAO project on OpenSea. Of the 9,999 cats “mutated by a disease on the Ethereum blockchain” and released for mint on October 4th for Ξ0.05, 8982 are staked. That means that 89% of the supply is being held for passive income by the owners. This collection has a price floor of Ξ1.6 and only 264, or 2% of the total supply, up for sale by its owner. This is not an easy collection to get your hands on! Mutant Cats saw a rough 7 days, with a 67% drop in the floor, but have since rebounded with an increase of 46% in the last 24h. Currently, Mutant Cats holds 14 blue-chip NFTs in their vault and growing.

So What’s the Catch?

There is a lot of discussion surrounding DAO projects and what is considered a security. DAO Turtles, a rabid and vocal community, recently found themselves in OpenSea jail. OpenSea stated DAO Turtles violated TOS for “Use of the Service to carry out any financial activities subject to registration or licensing, including but not limited to creating, listing, or buying securities”. DAO Turtles are currently frozen at Ξ0.5 on OpenSea, with the last transaction being 16 Days ago. Also happens to be the day they landed themselves in OS jail. Our website has a great article explaining some issues DAOs have faced that you can read Altcoin Buzz DAO Issues!

Rating 4/10

These projects come with more risk than the average NFT collection. It’s a grey area that no one in the community completely understands. Some projects, like Mutant Cats, are able to operate while others, like DAO Turtles, are not at the drop of a hat. Understand the risk associated with these projects. If you have the liquidity to risk these projects are very interesting propositions. Remember though, you could be reaping the daily rewards of multiple blue-chip NFTs that you have partial ownership over, and then you wake up the next day and you can no longer buy or sell these DAO collections.

Remember to always do your own research, make your own decisions and invest in projects that interest you!

Take a look at each collection mentioned in the article and join their discord! Mutant Cats, HeadDao, DAO Turtles and Zombie Toadz

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