It looks like cute cat avatars haven’t been dethroned in the hearts of NFT Holders as Cool Cats soared 45x in July, according to Delphi Digital. Lifetime volume (42 days) has reached 10,100 ETH or almost $32 Million based on OpenSea.
The cats were available for minting at 0.06 ETH but as of today’s rate, the floor price is 1.08 ETH or almost 18x the initial price.
Why are They “Cool Cats”?
Cool Cats is another recent project that launched on July 1st and minted 10,000 programmatically randomly generated cartoon cat avatars. The 1st generation consists of 10,000 randomly assembled cats from over 300k total options. Each Cool Cat possesses a unique body, hat, face, and outfit which determines how “cool it is” on a point system.
If your only basis is the project’s description, then it’s easy to pass it off as another NFT Avatar Project. The market is being flooded with 10k+ NFT drops, sometimes coming multiple times a day. So what exactly did it do to stand out?
Cools Cats is doing well because it pursued an uncharted territory. Instead of letting the project sputter out at .06 ETH. The team lowered the price of each cat to .02. Then, they refunded collectors who already paid and minted at .06 ETH. By doing so, the project regained its momentum because NFT holders started using the avatars as their PFP on Twitter.
The main risk of lowering your price is that it might devalue your product. However, the team was confident the art was unique. Additionally, they prepared a suite of utilities for NFT Holders. Basically, they bet that their project has what it takes to stand out. This strategy worked like magic and even Mike Tyson got hooked. The boxing legend now sports a Cool Cat as his PFP on Twitter, in full view of his 5.6 Million Followers.
Sustaining the Momentum Through Utility and Community-Building
The astronomical rise in popularity of some collectibles like Bored Ape Yacht Club has inspired the community to look for the “next big thing.” There has basically been a Zoo’s worth of Animal-themed drops in a couple of weeks. If we are to follow the strategy of BAYC, the utility is KING.
Cool Cats is hyperfocused right now on building a strong utility for the collectible. Future developments will include breeding capabilities, monthly exclusive airdrops and merchandise giveaways. In addition, the project will pursue liquidity pools to fractionalize and stake their cats to receive token rewards and potential community-made cat derivatives such as 3D cats or cat comics.
Another mandatory aspect is building a strong community. Thus, the team is crafting creative possibilities to increase engagement by incentivizing the community to come up with new ideas to increase the market value of their Cool Cats.The project is giving back 20% of all ETH raised to the community (through contests, raffles, and more) – because they want Cool Cats to be a community-driven and centric project.