Despite the gloomy market, a new model of NFT is gradually developing and attracting great attention from the NFT investment community - NFT Storytelling. Many quality projects with continuous growth are recorded, two of which are Renga NFT and Kitaro NFT. Why are these two projects so highly regarded? Let's find out with Holdstation through the following analysis!
To better understand what NFT Storytelling is and its potential, you can read the following analysis: Storytelling NFT - New Trend To Build The Metaverse?
Kitaro World
The story of "the cat" Kitaro
Kitaro is the story of an ancient creature's journey to Japan in the 1600s - Kitaro's form is quite similar to a cat. Kitaro - the protagonist in the adventure - discovers a multiverse, where 7,777 versions of himself exist, and each individual has a unique story and experience - the foundation for the community together continue to build the plot later. As he travels between timelines, he helps the antagonist (a long-lost familiar) overcome obstacles, later revealing his rich ancestry.
The goal of the project will be to focus on building web2.0 in the early stages with many physical products revolving around the character Kitaro and being traded through online retailers, including Amazon - REAL WORLD FIRST, METAVERSE SECOND.
- A series of colour books about Kitaro with AR (Augmented Reality) - created by the team and community of NFT holders selected to be the characters in the story.
- Toy plushies
The web3.0 Metaverse roadmap has just been added and the details are yet to be revealed.
⇒ According to the writer's opinion, if the implementation focuses on web2.0, it will be difficult to be transparent as well as optimize the profit from the purchase and sale of items, and how can the profit be distributed to the investors clearly - this is an important category related to the business model, but the project has not yet announced details, so there is a minus point for this part. (If there is the latest information, Holdstation will update later).
However, if the early stage creates a good community culture, this can be a stepping stone to entering the world of Web3.0 - blockchain adoption.
The team behind and the theories
Anonymous team member of 4 from Los Angeles and Tokyo from Los Angeles and Tokyo with backgrounds in corporate development, small business branding and indie studio design.
⇒ Personally, I think in the future it is possible to develop games about Kitaro based on the team background and the 2nd hypothesis mentioned below.
Because the artwork is somewhat similar to Studio Ghibli - a Japanese animation studio famous for many popular anime films - through the work My Neighbor Totoro, the community thinks the project has a relationship with this company, otherwise there will be potential problems with copyright issues and this hypothesis is also quite consistent with the direction of web2.0 focused development in the early stages of the project - the team has not officially confirmed yet.
Besides, another question is also raised that it is likely that Kitaro has the participation of the Kaiju Kingz team - an NFT project that combines gaming and web3.0 with the current floor price of about 0.34ETH - or Augminted Labs - KaijuKingz development company as well as several platforms for NFT - via the "hint" in the picture published from Kitaro.
Both relationships are still just rumours but if it turns out to be true, the Kitaro team is really strong and capable of developing long-term value-creating projects ⇒ Buy the Rumor, Sell the News.
Financial model
The project's revenue will come from books & merch sales through online retailers such as Amazon as well as from the transactions of NFT 7,777 Kitaro. Net profit from trading through web2.0 will be distributed as follows:
- Community Treasury - 50%: Supporting community-led activations and community partnership programs.
- Kitaro Gives Foundation - 30%: A non-profit organization celebrating the philanthropy pillar of Kitaro World (The details have not been released).
- Kitaro Studio - 20%: Maintain the growth and expansion of the Kitaro World Universe.
⇒ Unless more information is released, the writer does not appreciate this category at the moment because it will be difficult to be transparent to the community if the project does not go through blockchain. In terms of allocation ratio, 20% for the team is quite good.
So, what are the benefits for NFT investors?
- Commercial rights: The owner of Kitaro will have full rights to commercialize his NFT character - can be brands of clothes, toys,... ⇒ If the project is successful, derivative products like that will be a good profit.
- The opportunity to license the character to be part of the Kitaro ecosystem - regular comics, AR colour comics, and toys. If the character is selected, the NFT owner will receive royalties every time a unit is sold.
- Profits from trading NFTs.
On-chain data
Kitaro had an impressive rally in early October when the floor price of the collection skyrocketed more than 10 times from around 0.025 ETH to 0.32 ETH. However, currently, due to the situation of the whole market in general, as well as no new information coming, there have been certain adjustments in both price and trading volume. However, with the recovery on October 10, despite Bitcoin continuing to decrease, it can be seen that around 0.16 ETH is an acceptable price for investors to own 1 NFT Kitaro. Currently, the collection is still holding the floor price of around 0.19 to 0.2 ETH per NFT (up about 25%).
According to Nansen, in the last 2000 transactions, we can see that Kitaro still seems to have not received attention from Smart Money transactions, and most of the transactions come from normal investors. However, there are still notable Smart Money wallet addresses like 🤓 hobotown.eth and 🤓 @BrazyBull, these two wallet addresses bought Kitaro very early (about 15 days ago, when the price was around 0.025 ETH) and have almost completed taking profits, while 🤓 slamdunk. eth started buying when the collection peaked on 3/10 and is cutting losses on a few NFTs.
However, the top holding wallet addresses have not stopped buying in the past 7 days.
Besides, the collection is fairly evenly distributed throughout the community, with 3,143 wallet addresses holding (with a total supply of 7,777 NFTs), of which 61% hold exactly 1 NFT Kitaro.
The collection's average holding period is relatively stable, with holdings < 7 days at around 32% and 7 to 30 days at 65% (Kitaro was released 30 days ago), showing the buying power from new investors while still expecting future growth from investors who have already made a profit from buying in the past.
In addition, there are only 24 Kitaro for sale at the floor price, yet ~60% of the total number of NFTs for sale, set at 0.39 ETH or more, demonstrates the confidence of the seller with the potential value of the project.
Summary
Kitaro World is still a relatively young collection when it has just been released about a month ago, with the future still unclear. However, with a cute and friendly graphic style (Ghibli films are associated with the childhood of many people both in the East and in the West), the collection may have found a certain interest and foothold. in the community, this is a good thing for a Storytelling NFT project, which will greatly empower the community that owns the NFT. From a personal point of view, Kitaro is completely capable of further growth but still needs to be closely watched to make clearer judgments.
