Imitation is fun when it is done for comedy but it turns infuriating when it comes to copying someone’s work. So, what does imitation look like in the growing NFT space? You will be surprised to know, here, it is a lucrative opportunity in the form of ‘Derivative collections.’
If you have a little idea about NFT markets, you might have noticed certain collections that look quite similar to some extremely popular collections. These similar-looking collections are called NFT Derivatives, something we are going to find all about today.
What Are NFT Derivatives?
The term refers to NFT collections that are a blend of styles and attributes from well-known NFT projects. Apart from having the almost same visual appearance, the names of NFT Derivatives are also similar to the original NFTs they have been inspired from.
Some Derivatives have taken inspiration from renowned NFT collections like CryptoPunks and Bored Ape Yacht Club. Moreover, certain Derivatives are influenced by not one but two projects at a time.
SODA or Society of Derivative Apes is an NFT Derivative collection that is a fusion of features from Doodles and BAYC both.
Unfortunately, the majority of Derivative projects feature aspects from existing projects without seeking approval from the original NFT project.
Why are NFT Derivatives popular?
One of the prime reasons behind the rise in fame of NFT Derivatives is the continuous rise in the popularity of NFTs as well as the growing rate of their adoption.
Coming to the reasons behind the popularity of launching NFT Derivatives, certain NFT creators expect to get attention and business upon coming up with something like the successful NFT collections.
Moving on to the other reason, which probably is important from collectors’ point of view, not all of them have ample money to purchase their favorite high-profile collections, which tends to redirect them towards Derivatives.
NFT Derivatives are not always about profits
There’s no doubt that the main objective of such projects is making as many sales as possible. The group or the individual behind the collection tries their best to promote the collection on social media channels, share positive roadmaps, and offer exciting perks.
But there’s another side too. Particular NFT Derivative projects are beyond money and help community members to analyze their creativity. For example, Jenkins the Valet and Noodles are examples of Derivative projects that have not only established strong value but have also got support from the founders of the real collection.
Derivatives with promising roadmaps and plans of long-term survival have the potential of transforming the space.
Popular NFT Derivatives projects
Let’s take a look at some of the leading NFT Derivative projects that have stunned the market with their performance.
1. Bored Apes Solana Club
Also known as BASC, the collection is a replica of the Bored Ape Yacht Club project. Based on the Solana blockchain, the Derivative has gained success despite facing skepticism.
2. CryptoPhunks
CryptoPhunks refers to a Derivative NFT collection that looks identical to CryptoPunks. The project wasn’t well-received and removed from a number of NFT marketplaces. Despite all that, CryptoPhunks have got worldwide popularity and enjoy amazing sales.
3. NotOkayBears
NotOkayBears is another Derivative on the list that has a likeliness to Okay Bears. Unlike Okay Bears that’s on Solana, NotOkayBears are based on Ethereum. The collection became a major hit on LooksRare and OpenSea just after a few hours of being dropped.
4. Noodles
Noodles, an official Derivative project, has got immense support from the founders of the real collection, Doodles. What’s interesting about Noodles is the fact it is a result of a joke by two NFT collectors.
Companies that make NFT Derivatives
Certain players visualize making NFT trading possible for small retailers via NFT Derivatives.
NFTures
NFTures allows users to place bets on the future price of NFTs. Besides bringing gaming aspects, it leverages trading to marketplaces through sAMM, a decentralized protocol.
Bliv.club
An NFT Derivative platform co-founded by entrepreneurs like Mohammed Sirajuddin, Vikas Singh and Abhishek Kumar Gupta, Bliv.Club enables an average individual to take part in the NFT market via small ticket size.
NFT Derivatives, legal or illegal?
Ever since NFT Derivatives have become a part of the market, their legitimacy has been a major question.
If we talk about them from the long-term point of view, it won’t be wrong to say that the original NFT collections and Derivatives have a companion-like relationship. While creators expect their work to reach maximum people via Derivatives, Derivatives too expect to be a part of the market and unleash opportunities for a robust presence.
One thing that’s worth knowing is that if a Derivative NFT is up for sale like the real NFT without seeking approval from the consent of the creators, it is considered to violate IP rights.
On the other hand, if the Derivative project’s team has taken approval from the creator behind the original NFT to utilize styles and aspects of creativity used in the actual NFT work, the Derivative is considered legal.
This fight between legal and illegal is the reason that while buying any NFT Derivative, it is very important to ensure that the Derivative has got consent from the real creator.
Conclusion
Even though NFT Derivatives have the potential to transform the NFT market, not all of them are created alike. While some of them expect to benefit from the success of the original NFT projects they have taken inspiration from, others express appreciation towards the original projects.
Before getting hands on an NFT Derivative, a proper investigation of its background is a must along with the knowledge of risks associated with it in terms of whether it is legal or illegal.
