73 Crypto-elites

Crypto-elites

There’s a new way to signal your social status with the emergence of desirable and, crucially, ownable digital assets in the shape of NFT characters.

From star athletes to rappers to tech entrepreneurs, the rich and famous are snapping up NFT characters. NBA star Steph Curry paid $180,000 for Bored Ape Yacht Club character #7990. Former boxing champ Mike Tyson has a Cool Cat, while tech entrepreneur Alexis Ohanian owns a Pudgy Penguin. Ohanian also invested in a $280,000 CryptoPunk for his wife, tennis legend Serena Williams. Not bad for a CryptoPunk—in 2021, rare versions have sold at Christie’s and Sotheby’s for upwards of $7 million. Even finance giant Visa is getting in on the action, acquiring a mohawked CryptoPunk for $150,000. Once acquired, it is of course de rigueur to use your NFT as your social media avatar.

The market for NFTs exploded in 2021, and these communities of limited-edition character avatars have proliferated in tandem. The avatars, which feature animated character headshots in profile, are usually generated by algorithms to a theme, with different colors, hairstyles, clothing or accessories—some of which may be rare or even unique. Alongside apes, punks and penguins, prospective buyers can also choose from cats (Gutter Cat Gang), dogs (The Doge Pound), ducks (Sup Ducks), aliens (Lonely Alien Space Club) and all kinds of “ladies” (Fame Lady Squad).

While NFT avatars at their most basic are a “flippable” asset with genuine market value, they are also a way to underline both wealth and status, marking any owner as a paid-up member of the crypto-elite. Alongside their asset, investors gain access to valuable social and networking opportunities with their fellow owners via memberships to exclusive Discord or Telegram channels. So intense is the urge to get behind the virtual velvet rope, there are already rental and fractional ownership models for those who can’t afford to own their own character. Crypto-investor Cooper Turley, aka Coopahtroopa, related on an episode of the WAGMI podcast how a CryptoPunk NFT he bought for $300 is now worth half a million dollars. He also noted that the “social capital that comes from owning the punk is so much higher than any amount of money. You’re going to get lifetime benefits from having it. You get entry into a very exclusive club of collectors and holders. I think that the cachet of just holding something like that is something that’s never going to go away.”

Why it’s interesting Whether NFT characters have long-term staying power is so far unclear, but perhaps more interesting is the wider trend toward virtual status signifiers. Wunderman Thompson Intelligence’s “Into the Metaverse” report identified a strong consumer appetite for virtual ownership. Virtual possessions seem to have the same symbolic value and convey status in the same way as real-world luxury cars or watches do. As we head to the metaverse, it seems unequivocal that our avatars will be the focus of significant investment.