ShapeShift hopes to create ‘rarest and most historical’ NFTs with 80% trading card supply burn
Non-custodial cryptocurrency exchange ShapeShift has burned hundreds of themed collectible “cards” from the blockchain-based mobile game Spells of Genesis. The team said that the remaining cards in its possession will be placed under the control of its new decentralized autonomous organization, or DAO, and unlocked in limited tranches over the coming two years.
According to on-chain data, ShapeShift has burned at least 817 of the digital cards titled “ShapeShift the Wanderer.” This follows an Oct. 12 announcement that the exchange intended to burn the majority of cards to make those in circulation “among the most rare [Spells of Genesis] cards in existence and among the oldest NFTs in existence.”
“These are some of the earliest NFTs (circa 2015) that were minted by Spells of Genesis and given to ShapeShift as part of our partnership supporting their early blockchain-based game development,” said ShapeShift. “These could end up being some of the rarest and most historical NFTs ever.”
In total, there are now only 183 editions of the asset, known on-chain as SHAPESHIFTCD, out in the wild. Many of these are believed to be lost, potentially making them one of the rarest blockchain collectibles in existence.
According to the exchange, it plans to move the 32 remaining cards in its possession from the Counterparty blockchain to the Ethereum blockchain using the Emblem Vault bridge, which allows crypto users to wrap Counterparty tokens as ERC-721 assets and trade them on Ethereum via platforms such as OpenSea.
Of the total not burned, ShapeShift will retain 16 cards to sell before 2022 and give 16 to its DAO treasury. ShapeShift said it will unlock the cards in stages over the next two years, but FOX token holders will vote on whether the DAO sells or HODLs.
“Whether the DAO sells these NFTs for ETH, holds them for the long term, or some combination thereof they will become a valuable and important asset in the ShapeShift DAO treasury,” said the exchange. “There is some chance the NFTs do not end up being valuable and become a non-useful asset, but even in that case no harm is done to the DAO.”
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The move seems to be an attempt to drive additional interest and gain more value from the crypto collectible cards, which predate CryptoPunks and all other major NFT offerings to come out of the recent boom. According to Shaban Shaame, a blockchain pioneer and the CEO of software company EverdreamSoft, Spells of Genesis cards are “not particularly easy to acquire,” given their location on the Counterparty blockchain. However, the Emblem Vault bridge has provided users with a way to trade the tokens on Ethereum, leading to a new boom in trading activity for the once all-but-forgotten assets.