Key Takeaways
- 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.
Share this article
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 a GOO hype
The Art Gobblers economy has taken off.
Art lovers, the factory NFT collection designed by Rick and Morty co-creator Justin Roiland and crypto investment firm Paradigm launched to much fanfare on Monday, showcasing the collection’s NFTs sell immediately for over $20,000 on secondary markets, despite being minted 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 blank, function as digital canvases; owners can choose to put artwork of their choice on it. Once filled, Page NFTs can be fed to a Gobbler. This transfers ownership of the art directly to the Gobbler NFT. The stated goal of the project 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 continually risen in price, with them now being the cheapest trade for 16.39 ETH, or just under $25,500. Given the price increase and utility of GOO, market participants are wondering whether GOO is worth investing in.
Don’t get stuck in GOO
Despite being a crucial part of the Art Gobblers ecosystem, investors are unlikely to benefit from purchasing the GOO token in the long run, even if the NFT collection flourishes. 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 to zero.
Wouldn’t that affect the success of the Art Gobblers project? Not necessarily. Despite being priced in GOO, Gobbler NFTs and Page NFTs use a proprietary pricing mechanism, meaning 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 asset in the Art Gobblers project, but even owning one of them does not guarantee a profit. Because of 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 relies on Gobbler NFT and GOO ownership, several companies have already pooled 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 to have set up a private pool with other Art Gobblers enthusiasts. A ranking to show in fact, the wallets with the most Gobblers and GOO have been created: at the time of writing, the largest GOO holder owned 64.87 tokens (worth over $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.
Share this article
