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Rise of the Planet of the CyberKongz

Posted by
Hristina Yordanova

CyberKongz NFT sells for 120 ETH

CyberKongz NFTs have been steadily gaining momentum, as the floor price for the collection continues to rise. In the past 24 hours, CyberKong #17 sold for the whopping amount of 120 ETH, or $421.390. This increased popularity comes from their innovative token incentive, giving NFT holders passive income.

CyberKongz NFTs come in different variations, but the genesis series are by far the most popular. These are the only NFTs in the collection that give the holders BANANA tokens. It’s, therefore, no surprise that CyberKong #17 sold for $421.390.

The purchase of CyberKong #17 made it the seventh most expensive NFT sold in the past 24 hours. Interestingly, the new owner only has 15 NFTs in his wallet, and this is their most expensive purchase so far. More notably, one Doge Pound NFT and a Mutant Ape Yacht Club are keeping CyberKong #17 company. 

Currently, the floor price for a Genesis CyberKongz NFT sits at about 135 ETH, which means that the new buyer can already make a pretty nice profit. NFT collectors are actively seeking out Genesis CyberKongz NFTs. The genesis collection is extremely limited with just  1000 CyberKongz in total. Additionally, Genesis CyberKongz NFTs are the only ones to reward holders with daily BANANA rewards.

Considering the added benefit of holding a genesis NFT from this collection, it is no surprise the floor price is going through the roof. What’s more, CyberKongz devs are turning into pioneers of building utility for their community. 

The CyberKongz utility model

CyberKongz has already released three iterations of gorilla-themed NFTs. The genesis collection, as mentioned, is the most sought after, as it brings heaps of utility for holders. However, all three CyberKongz collections are pushing to reward the community, and bring utility.

Genesis CyberKongz allows holders to spend BANANA tokens and perform numerous customizations to their NFT. Change the name, rewrite the biography of their CyberKong, or breed BabyKongz and CyberKongz VX. Additionally, Genesis CyberKongz NFT holders receive daily BANANA airdrops – 10 tokens per NFT for ten years.   

BabyKongz and CyberKongz VX also bring a variety of utilities for holders. Collectors can once again change the biography and name of their NFT by spending BANANA tokens. However, these two collections don’t reward holders in BANANA tokens. This feature is exclusively reserved for Genesis NFTs only. 

CyberKongz BANANA rewards

Following the introduction of the BANANA utility token, CyberKongz saw a surge in activity. The token launched at the beginning of August and considering the earning mechanics involved for genesis NFT holders, the collection saw a spike in trades. Since then, the floor price has been steadily rising. 

Interestingly, the price for one BANANA token also kept rising. With a list price of around $6, the token is worth upwards of $64 at the time of writing. Just consider the daily earnings of a person holding only one Genesis CyberKongz NFT – ten free BANANA tokens per day make about $640, or more than $4480 weekly. That’s a pretty good passive income to have.

Regulatory concerns

While beneficial to owners, the BANANA token rewards mechanism constitutes a somewhat legal gray area when it comes to the nature of NFTs. Bringing in a DeFi element to the mix might sound great in terms of utility, however, this takes the whole NFT collection one step closer to becoming a security. 

This is an important moment, as securities are strictly regulated by the Securities and Exchange Commission (SEC). However, for the moment NFTs, and mostly anything to do with blockchain tech and crypto are flying under the radar when it comes to regulation. 

In this sense, while CyberKongz is making waves among community members, the devs are also facing a double-edged sword in terms of regulatory compliance. There have already been instances when secondary marketplaces have taken down collections because of regulatory concerns. For example, OpenSea froze trading for the DAO Turtles collection after the team explicitly announced passive income opportunities through staking mechanics for token holders.

As nice as it may be in the underregulated world, the crypto space is still to see what the future holds. Mixing up staking, DeFi, NFTs, and royalty rewards might be good for the community, unfortunately, it also might flag the collection to regulators. 

DappRadar will continue monitoring CyberKongz, as trading activity for the collection continues to impress. Stay tuned and follow us on Twitter and Discord to find out the latest news first. 

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