Collect and breed digital cats. (It is no surprise that this is one of the first major NFT projects to go viral.) Peaking in December 2017, CryptoKitties has largely been out of the spotlight in recent years. With some cats as low as $7, this is more of a game/hobby than a major investment opportunity when compared to your other current NFT options. But who knows, maybe it makes a comeback?
Built on Ethereum and famously congested the network during peak CryptoKitties craziness in December 2017. This was the first major hit for Dapper Labs (the company behind NBA Top Shot). Users have to pay Ethereum gas fees to interact with CryptoKitties (buy, sell, breed), which is a higher barrier given that these transaction fees can run $30+.
Cats can be purchased and added to your collection, as well as bred to produce a new cat. You are also able to Sire your catsk (aka rent your cat out for breeding).
High-end (Top 5% of NFTs on platform): Gen 0 Founder Cat #18 sold for $164,000 back in the day
Overall rating: ★★☆☆☆
Unfortunately, CryptoKitties had their day in the limelight, and have faded into obscurity. New NFTs with better IP and better User Experiences have overshadowed these cats. Of course, the internet loves cats, so it cannot hurt to pick up a few just to brag about owning an internet cat, but we see very limited upside from an investment perspective. The high transaction fees also do not help the cause.
Scarcity rating: ★★☆☆☆
While Kitties themselves are in plentiful supply, scarcity comes down to the “cattributes” (eye color, body size, generation). Certain cattributes are more rare, and therefore desirable. For example, Generation 0 cats are often the most sought after, as these are the “originals”. Cats then breed to produce higher generation cats, but there can only ever be 50,000 Gen 0 Kitties. There are also special edition Fancy Cats. There are plenty of guides to help assess the rarity and uniqueness of a cat’s attributes.
IP rating: ★☆☆☆☆
There is no real IP. These are cats, on the internet, which are plentiful.
Liquidity rating: ★★☆☆☆
CryptoKitties has its own marketplace, and you can also sell your cats on other sites such as OpenSea. However, the demand and volume just isn’t there. All transactions are done in ETH.
Additional valuation commentary:
Overall market upside: Very minimal, unless CryptoKitties make a surprising comeback or become popular for being one of the OG NFTs.
Additional upside: Limited. Try to stick to early generations and use cattribute analyzer sites to choose rare cats.
Day trading opportunity: Non-existent.