An Introduction to PFP NFTs: What You Need to Know
Crypto has been around for 15 years, and thanks to its popularity, it is impossible not to have heard of at least one crypto-related topic, such as blockchain technology, Bitcoin, the Ethereum blockchain and its smart contracts, NFTs (Non-Fungible Tokens), mining, staking, and many more.
And while investing in cryptocurrencies can be a good strategy, many crypto enthusiasts have started considering NFTs, too. Since 2021, non-fungible tokens have become widely known, and PFP NFTs may be some of the most popular digital collectibles.
But what is a PFP NFT, how does it work, and how can it be used? Well, this article will explain PFP NFTs, along with a short history of the hype around these tokens and the top PFP projects on the market.
How PFP NFTs Work: The Basics of Profile Picture NFTs
Profile picture (PFP) non-fungible tokens (NFTs) are digital collectibles that can and usually are used as social media profile pictures on various channels. The main difference between PFP NFTs and other NFTs is that the former is suitable for a profile picture, while other NFTs might also take other forms, such as videos, audio files, or GIFs.
Generally, PFP NFTs are static, in the form of 2-dimensional images, usually created through a generative algorithm. To be a PFP NFT, a digital collectible should show a bust of a human, an animal, or any other real-life or virtual character.
Considering that most profile picture NFTs are created through generative art, you may see projects with over 10,000 NFTs. However, each piece of art is different. As we all know, each NFT is unique, and PFP NFTs work the same.
For instance, let’s think of Bored Ape Yacht Club (BAYC) NFTs. While they all show monkeys, each monkey is different, having various accessories and colors. Furthermore, in some cases, each PFP NFT might have a different price according to its traits. This usually happens with game character NFTs.
If you’re playing a blockchain-based game, you might hold at least one such digital collectible with a character. Let’s say the game is about saving the world, and you, as a player, are a fighter. Your character might have a specific power and various traits that help it compete in battles, like the ability to become invisible.
On the other hand, another player’s character (and NFT) might be able to immediately restore its health when being attacked in battle. Depending on how important each trait is, your NFT might have a value of 1 ETH, while the other digital collectible might be available for 1.5 ETH.
Creating and Using PFP NFTs: A Step-by-Step Guide
PFP NFTs can be created via specialized platforms, such as OpenSea or Binance, or simply purchased from NFT marketplaces like OpenSea, Rarible, or SuperRare.
If you want to create such an NFT, you will have to choose a blockchain to work with. While not all networks support NFTs, there are numerous options you can choose from.
Then, you should set up a crypto wallet, but make sure you choose one that supports NFTs, as not all of them do. Some wallets that support NFTs include MetaMask, Coinbase, and Trust Wallet. Afterward, just mint your NFT and publish it on a marketplace.
A Brief History of PFP NFTs: From CryptoPunks to Bored Ape Yacht Club
While the first NFT was created in 2014, it was not until 2017 that the first PFP NFT collections were launched. CryptoPunks was the NFT collection that made the concept of PFP popular in the field, and once developers noticed the success of Matt Hall and John Watkinson, the founders of CryptoPunks, many other such collections were launched.
The growing popularity of PFP NFTs was also fueled by the surprising sale of a digital collectible developed by Beeple. In March 2021, Beeple (Mike Winkelmann) sold one of its NFTs for $69 million through a Christie’s auction.
Soon after CryptoPunks launched, NFT holders started using their CryptoPunk characters as profile pictures on social media platforms and social networks such as X (Twitter) and Discord, respectively. After some time, CryptoPunks and its digital collectibles experienced wide adoption by NFT enthusiasts, and so did PFP NFT projects in general.
The popularity of PFP NFTs also started to increase when projects such as Bored Ape Yacht Club also offered NFT owners access to real-life private events, merchandise, and many other benefits.
Besides, thanks to the projects’ clear and promising roadmaps, the NFT community could be a little more sure that the project was planning to have long-term value.
Top PFP NFT Projects: Exploring the Most Popular Collections
At the moment, there are hundreds, if not even thousands, of PFP NFTs, but some of them have become widely known thanks to their art, features, and trustworthy developers. Thus, let’s talk about some of the most popular PFP NFT collections.
CryptoPunks
CryptoPunks is an NFT collection launched in 2017 by Larva Labs. A CryptoPunk NFT is a 24×24 pixels, 8-bit-style unique avatar that can be used as a profile picture (PFP). The NFT profile pictures provided by CryptoPunks have different traits, accessories, and styles, and the prices vary depending on their rarity.
When Matt Hall and John Watkinson began working on the collection, they planned on creating 10,000 Crypto Punks and had no idea that their avatars would get featured in places such as The New York Times, Christie’s London, and PBS NewsHour.
CryptoPunks NFTs have various prices, and users can purchase an NFT for as low as 0.01 ETH. However, some digital collectibles reached surprising prices. For instance, CryptoPunk #5882 was sold for $23.7 million on February 12, 2022.
Bored Ape Yacht Club (BAYC)
Bored Ape Yacht Club is an NFT collection of 10,000 unique digital assets. The project was developed by Yuga Labs, a top player in the NFT industry. After seeing the popularity BAYC gained, Yuga Labs also developed its native token, Ape Coin.
In April 2021, when it launched, there was such a big hype around Bored Ape Yacht Club that the 10,000 digital collectibles available sold in just 12 hours from launching for a price of $190. The price of BAYC assets surged in July 2021, when the collection became one of the most popular NFT projects.
The intriguing thing about BAYC is that Yuga Labs does not provide an NFT only. When purchasing a BAYC NFT, you get access to many benefits, such as special events organized in real life, merchandise, and many more. While you can purchase a BAYC NFT for close to 1 ETH, some digital collectibles also reach surprising prices, such as 1,688,888 ETH.
Mutant Ape Yacht Club
Mutant Ape Yacht Club is an extension of Bored Ape Yacht Club, consisting of 10,000 digital collectibles. MAYC managed to have $96 million in sales in the 1st hour from launch, given the popularity of its related NFT collection, BAYC.
MAYC was launched as a cheaper alternative to BAYC and was part of Yuga Labs’ initial roadmap. Part of the collection was airdropped to BAYC holders as a way to prove the company’s dedication to its community.
Analyst comment
Positive news: The article provides an introduction and explanation of PFP NFTs, highlighting their popularity and use as digital collectibles. It also discusses the history of PFP NFTs and mentions some of the most popular collections like CryptoPunks and Bored Ape Yacht Club.
As an analyst: The PFP NFT market is expected to continue growing as more crypto enthusiasts are exploring these digital collectibles. Top PFP NFT projects like CryptoPunks and Bored Ape Yacht Club are likely to see increased adoption and potential price appreciation.
