Non-fungible tokens (NFTs) are still generating excitement in the crypto sphere and even well beyond. We have only recently seen the crazy success of pre-registrations on the future Coinbase platform specializing in NFTs. This time, ShapeShift is creating the buzz in the NFT world, wanting to cause the extreme scarcity of one of its unique tokens.
Between digital art objects and collectible cards, NFTs sometimes elicit a euphoria bordering on hysteria. The prices of certain NFTs can thus explode towards astronomical sums.
These are early NFTs (circa 2015) created by Spells of Genesis and donated to ShapeShift as part of their partnership supporting the development of their first blockchain-based games as shared by ShapeShift. Also, these could end up being some of the rarest and most historic NFTs of all time.
Cryptocurrency exchange service ShapeShift announced in a post that it will contribute in its way to this sweet NFT madness. Its new decentralized autonomous organization (DAO) indeed intends to rarefy an existing collectible card in the form of a digital token.
It is more precisely the card "ShapeShift, the Wanderer" (SHAPESHIFTCD), from the game "Spells of Genesis," and minted (created) in 2015 on the Counterparty (XCP) blockchain. Already one of the oldest NFTs in existence - CryptoKitties and CryptoPunks dating back to 2017 only - these tokens had only been issued in 1,000 copies, but that still seemed too much for ShapeShift:
"The ShapeShift company plans to burn (destroy) 649 SHAPESHIFTCD in its possession (…), to keep 16 for sale in the name of the company by the end of the year and to donate the remaining 16 copies to the ShapeShift CAD treasury. "
By thus burning 649 of the 681 digital collectible cards in his possession, the purpose of ShapeShift is transparent and explained in his announcement:
"[These cards] could end up being some of the rarest and most historic NFTs around. (…) These cards could thus prove to be a valuable and essential asset in ShapeShift's DAO treasury. "
The idea that interprets the vote of the holders of FOX (the native token of the ShapeShift project) is to gradually unlock the cards owned by the DAO to benefit its cash flow over the long term.
Of the 16 cards received by the decentralized organization, five would be immediately available for sale, five would not be on sale for one year, and six would not be salable for two years.
If FOX owners decline this deal, no SHAPESHIFTCD will be distributed to ShapeShift DAO.
However, the ShapeShift non-depository cryptocurrency exchange has burned hundreds of themed collectible "cards" from the Spells of Genesis blockchain-based mobile game. The team said the remnant cards in their possession would be placed under the control of their new Decentralized Autonomous Organization, or DAO, and released in limited installments over the next two years.
According to the channel's data, ShapeShift has engraved close to 817 digital cards named "ShapeShift the Wanderer." This was followed by an October 12 announcement that the exchange intended to burn most cards for them to be"among the rarest [Spells of Genesis] cards in existence and among the earliest existing NFTs.
There are now only 183 active editions, known on the channel as SHAPESHIFTCD. Many of these are assumed to be lost, eventually making it one of the rarest blockchain collectibles around.
As per the exchange, the team plans to move the 32 remaining cards in his possession from the counterpart blockchain to the Ethereum blockchain on the Emblem Vault bridge, which permits crypto users to wrap the counterpart tokens as assets via ERC-721 and trade them on Ethereum via platforms Like OpenSea.
ShapeShift will retain 16 cards for sale before 2022 and donate 16 to its DAO treasury of the unburned total. ShapeShift has reportedly said that they will unlock the cards in stages over the upcoming two years, but FOX token holders will vote whether DAO sells or HODL.
Whether the DAO sells these NFTs for ETH, holds them for the long term, or combines them, they will become a valuable and essential asset in ShapeShift DAO treasury as per the exchange. Also, NFTs won't end up being beneficial and become a non-useful asset.
The move seems to be an attempt to generate ad-hoc interest and take advantage of crypto trading cards, which will predate CryptoPunks and all of the NFT's remaining major offerings emerging from the recent boom. As Shaban Shaame, CEO of software company EverdreamSoft, Spells of Genesis cards are "not particularly easy to acquire," given their counterparty's blockchain location. However, the Emblem Vault bridge has paved a path for users to trade the tokens on Ethereum.