Ever since Beeple sold their artwork for millions of dollars, NFTs have become one of the best ways to make money on the cryptosphere. In the third quarter of 2021, DappRadar reported that people had bought $10.7 billion worth of NFTs. The MicroPets platform wants to make this possible for you. But instead of selling artwork, the platform lists pet memes for sale.
It’s not too far-fetched to imagine these NFTs going for a decent price by the way. After all, CryptoPunk #9998 sold for 124,457 ETH ($530 million) on 28 October 2021. And given that ‘tis around the season for giving, we thought it would be a good idea to discuss this token.
Only launched a couple of days ago prior to publishing on 18 October 2021, MicroPets is an NFT marketplace that lists memes for sale. At the time of the launch, 6 NFTs were created to get things started but since then several others have been included. Ultimately, the aim is to include many more NFTs so that the platform becomes a thriving marketplace.
To buy one of the NFTs, you will first need to own PETS, which is the native currency for the platform. PETS is a BEP-20 token based on the Binance Smart Chain (BSC), a popular platform for creating DeFi tokens. 10 trillion PETS tokens were created for the network and will be the total supply ever for the platform. A presale was held on 17 October on PinkSale, but now you can buy the token on PancakeSwap (V2).
Once you have acquired PETS, you use it to purchase crates on the MicroPets platform. Each crate contains a single NFT, but you won’t know what’s inside until you purchase it. Let’s just say it’s kind of a lottery, so you won’t know its value until after you buy one. Once your NFT is revealed, you have a choice between staking or selling.
Staking is similar to holding and it will earn you rewards for being a holder as you shall see in the next section. Otherwise, you can choose to sell yours if you don’t like, want something different or simply trying to flip it for a profit. After all, every individual’s taste is different and in an active marketplace, it’s nearly impossible not to find an interested party.
There is no limit on how many crates you can buy; and because it uses the BEP-1155 standard for NFTs, you can purchase multiple crates in a single transaction. Thereafter, you can choose to keep the NFTs you own or sell them on the marketplace or elsewhere.
A total of 10 trillion $PETS were created at the launch and this will be the maximum number in circulation ever. Unlike other hyperdeflationary DeFi tokens, though, none of the tokens are burned to decrease supply. Instead, the MicroPets project relies on taxes to incentivize investment.
When you purchase one of the crates listed, a 7% fee is charged for the transaction. Part of the money collected (5%) is then used for buying back some $PETS tokens from the open market and in marketing. Buybacks artificially prop up the price of PETS, thereby rewarding those who hold the token with a more valuable asset.
At the same time, money spent on marketing creates more demand through platforms such as Telegram and thus higher value. Remember, taxes are the main incentive for investors and it is necessary to promote an increasing number of transactions.
The remaining 2% is kept in the liquidity pool to help prevent sudden price swings caused by massive selling or buying of the token. Coins that suffer such actions by whales often struggle to find footing afterwards due to investors’ fear of rug pulls. Not only does protection against this prevent investor losses, but it also boosts confidence toward staking and holding long-term.
Each NFT you hold has a unique staking multiplier meaning that you get different rewards. Unlike other tokens where rewards are distributed equally, this form or reflection is meant to encourage trading and purchasing as investors try to find more unique pets.
Meanwhile, users who hold the NFTs benefit either by selling the NFT or by staking. The lottery system involved means it’s possible to acquire a rare pet NFT with a lot of value, which you can sell for a profit. Or you can choose to hold on to one and earn rewards for acting as a staker.
Is this a good investment?
Like all crypto investments, there is a high risk involved due to the nature of the market. The key is to weigh the potential benefits against this risk, and MicroPets may be worth the investment. NFTs are trending at the moment so that’s already a benefit for investors and a good reason to consider becoming one.
For one, it is a new entry meaning that you can get in on the ground floor and ride the wave upwards as it continues to grow in popularity. In less than a week after being launched, there are already over 100,000 transactions on the network and over 13,500 holders of PETS. Clearly, therefore, MicroPets has been generating a lot of interest from investors.
On the day of the launch, the price of PETS on Poocoin charts shot up rapidly before falling to presale values. Although not the perfect start, it’s not unusual to see this sort of choppy activity for a new coin with little market cap. Over time as more investors hold the token, it will gain more stability.
For now, it’s probably the ideal time to invest while the price is still low and ride the wave upwards. Besides, you can also choose to buy and own one or several NFTs listed for yourself or to sell elsewhere. It’s still too early to make any future price predictions, so we’re waiting to see what happens in the next few days and keep you updated.