Key learning points
- Art Gobbler NFTs have started producing GOO tokens.
- GOO can be used to produce more GOO or generate Gobbler NFTs, among other things.
- Despite its usefulness, the token is unlikely to perform well even if Art Gobblers becomes successful.
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Art Gobbler NFTs have started producing GOO, which can be used to generate new Gobbler NFTs, or produce even more GOO. Over time, this monetary system will most likely favor early adopters and whales at the expense of everyone else.
Art Gobblers unleashes GOO hype
The Art Gobblers economy has taken off.
Art Eaters, the factory NFT collection designed by Rick and Morty co-creator Justin Roiland and crypto investment firm Paradigm, launched Monday to much fanfare, featuring the collection’s NFTs sell directly for over $20,000 on secondary markets – despite being slapped for free.
24 hours later, these Gobbler NFTs started producing GOO tokens. GOO Tokens can be collected to expand a Gobbler’s GOO production capabilities, spent to generate new Gobbler NFTs, or used to purchase Art Gobbler pages. These pages, when empty, function as digital canvases; owners can choose to stick artwork of their choice on it. Once filled, Page NFTs can then be fed to a Gobbler. This transfers ownership of the art directly to the Gobbler NFT. The project’s stated goal is for Gobblers to become decentralized, marketable art galleries.
The ability for GOO to generate new Gobbler or Pages NFTs has made the token very attractive to believers in the project. At the time of writing, GOO is trade for $1,855 in the GOO/WETH pool on Uniswap V3. Gobbler NFTs have also been constantly increasing in price, with the cheapest available now trade for 16.39 ETH, or just under $25,500. Given the price increase and usefulness of GOO, market participants are questioning whether GOO is worth investing in.
Don’t get stuck in GOO
Despite being a critical part of the Art Gobblers ecosystem, investors are unlikely to benefit from buying the GOO token in the long run, even if the NFT collection is thriving. Gobbler NFTs can produce an infinite amount of GOO – there is no supply limit. The more GOO they collect, the more GOO they can produce. This means that Gobbler NFTs will eventually generate an exponential amount of GOO. Since GOO will not be able to find an exponential number of buyers at the same time, the most likely outcome is that the price will eventually move towards zero.
Wouldn’t that affect the success of the Art Gobblers project? Not necessary. Despite being priced in GOO, Gobbler NFTs and Page NFTs use a native pricing mechanism, which means that these NFTs will see their prices in GOO increase over time, regardless of the intrinsic value of GOO itself.
Gobbler NFTs are therefore the only valuable assets in the Art Gobblers project, but even owning one of them is no guarantee of profit. By the way the tokenomics are designedArt Gobblers rewards early adopters and whales at the expense of future owners – similar to a pyramid scheme.
Since GOO generation depends on Gobbler NFT and GOO ownership, multiple companies have pooled all their resources to increase their GOO production capabilities. Crypto lawyer Adam Cochran launched the Gobbler’s Union, which asks members to contribute ETH to purchase as many Gobbler NFTs, GOO Tokens, and Pages NFTs as possible. GVB Capital member Minion claimed on Twitter having set up a private pool with fellow Art Gobblers enthusiasts. A ranking to show the wallets with the most Gobblers and GOO have even been created: at the time of writing, the largest GOO holder held 64.87 tokens (worth more than $120,300) and 53 Gobblers (worth at least $1.3 million) . If you can’t keep up with this kind of firepower, it’s probably best to stay away from GOO.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and several other crypto assets.