Share articles to

Academy Industry Analysis Article
OKEx Insights NFT Snapshot FT

Meebits tops NFT charts despite unexpected exploit

2021.05.11 Robbie Liu

The NFT market has regained some momentum following the launch of Meebits and Uniswap V3. 

The NFT market has seen a significant uptick in the last week as NFT enthusiasts get busy again. Much of this can be attributed to the launch of Larva Lab's third project, Meebits. Beyond crypto artwork, Uniswap V3 debuted on May 5 and uses nonfungible tokens to represent liquidity providers' positions — a milestone in the financial NFT field. 

Here's everything you need to know about these stories, and more, in this week's NFT Snapshot from OKEx Insights. 

Larva Labs unveils latest metaverse-focused project

At the end of April, OKEx Insights mentioned that Larva Labs, the development team behind CryptoPunks and Autoglyphs, was in the process of sending out a new project. Said project was finally unveiled last week — a metaverse-focused series called Meebits.

Meebits are 20,000 unique three-dimensional voxel characters created by a custom generative algorithm. 9,000 of these were sold via a Dutch auction, with the remaining NFTs available to be redeemed by Cryptopunks and Autoglyphs holders on a one-to-one basis through a community grant.

According to the official website, Meebit owners have access to an additional asset pack that includes the full 3D model, allowing it to be used in animation software, 3D studios and the metaverse — arguably the hottest concept recently, which describes a virtual world that people may inhabit in the future.

9,000 Meebits sold out in a few hours through the Dutch auction — which began with a 2.5 ETH asking price and was lowered until some participants accepted. The average price ended up at 2.4 ETH. However, the floor price of an average Meebit dropped to 1.5 ETH on Monday. The prices of rare Meebits have remained high, however. For example, Meebit #8598 — a "visitor" wearing a camo shirt — sold for 420 ETH, or roughly $1.41 million, per data from DappRadar. 

The current floor price of an average Meebit is around 1.5 ETH. Source: Larva Labs

The launch of Meebits wasn't all smooth sailing, however. An attacker, @0xNietzsche, found an exploit that allowed them to choose which Meebit they wanted to mint. They then purchased several Punks with unredeemed Meebits in order to successfully mint Meebit #16647, a rare "visitor" that sold for 200 ETH to famous NFT collector "Pranksy," who tweeted about what happened right after. 

What is known so far from the development team is that the contract is safe, but the identity of the remaining unminted Meebits was leaked due to being on distributed file system IPFS. The team temporarily paused community minting but is using the "devMint" function to allow users to claim their Meebits. Trading resumed on Monday.

Uniswap V3 mints proof-of-receipt NFTs for liquidity providers

Uniswap, the leading decentralized exchange, launched its latest version on May 5. As each liquidity provider can now choose a different market-making price range, Uniswap V3 mints unique on-chain generative NFTs for liquidity providers based on their position information — meaning LP positions are now NFTs. This new feature shows that NFTs can be used in interesting ways outside of the art sphere. 

The display interface of an LP NFT is also unique. The top of the card shows the trading pair name, and below is the corresponding transaction fee of the pool. The first 100 users in each pool are said to have a higher probability to receive a rare sparkle in the bottom right corner. The ID number displayed at the bottom left corner is a ranking based on the time order that the liquidity was provided. 

Uniswap launched new NFT tokens alongside its V3 upgrade. Source: Uniswap

Some users do not fully understand the functionality of Uniswap's new NFT token. Twitter user @Juan_Snow1 found an interesting case where a liquidity provider sold their LP NFT token on Rarible for 1 ETH. However, the seller seems to be unaware that this NFT token represents his ownership of said SUSHI/WETH liquidity. The buyer immediately removed the liquidity from Uniswap in exchange for 495,000 SUSHI and 18.15 WETH — worth a whopping $130,000. 

Meebits fuels spike in NFT sales

On the list of top NFT collections, Meebits appear extremely popular after getting listed on OpenSea and reaping a staggering $55 million in transactions over five days. This puts it more than $20 million ahead of CryptoPunks in terms of weekly volume. 

Second-ranked CyrptoPunks also achieved volume and sales growth last week. Since each CryptoPunk can claim one Meebit for free, the floor price of an average CryptoPunk has been raised. On the other hand, the contract attacker of Meebits bought several floor-priced Punks — affecting weekly volume numbers. 

Good news has triggered speculation in the short-term, as nine rare CyrptoPunks are being offered at Christie's 21 Century Evening sale this Wednesday. Another auction house, Sotheby's, is scheduled to hold its second NFT auction in early June that will feature the rare Alien CryptoPunk #7523. 

NBA TopShot has seen an increase in the number of traders, though trading volume has dropped by 28%. Large deals are rare — no big moments appear within the weekly top 50 NFT collectible sales. 

Rarible is ranked fourth with a 33% plunge in the number of sales — indicative that the market seems to be losing interest in crypto art that isn't related to the metaverse. 

Meebits is currently the top NFT project by volume. Source: DappRadar

OKEx Insights presents market analyses, in-depth features, original research & curated news from crypto professionals. 

Follow OKEx Insights on Twitter and Telegram.

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.