Rarible - $RARI, Asset Review
NFT (Non-Fungible-Tokens) sales are on a tear and it ranges from gaming, collectibles, metaverse, art and so much more that is yet to be discovered. We are truly at the infant stages of NFTs as these numbers are truly staggering, to witness a sector grow by 200+ fold year over year in 2021. However, as NFT grows there will be a lot of friction across blockchains as marketplaces keep expanding and Rarible is here to save the day as the only multi-chain (5 active chains) NFT marketplace.
Content:General Information-What is Rarible
Rarible Background
Rarible Funding/Collaboration
Token Information-Tokenomics
Governance
Additional Information-
Extras
Technical Analysis
Conclusion
General Information-
What is Rarible?
Rarible is an open-source, cross-chain, community-governed NFT marketplace where you can create (mint), and buy/sell digital collectibles. As the ecosystem of NFT grows, over time there will be a lot of friction in the system as more blockchains gain traction. Currently, Rarible is the only protocol with multiple chains built into the marketplace such as Polygon ($MATIC), Tezos ($XTZ), Flow ($FLOW), and Ethereum ($ETH). Solana ($SOL) is an active chain built into their protocol however, it is not currently available on Rarible.com.
2. Rarible Background
Rarible is a project-based in Moscow founded by Alexander Salnikov, Alexei Falin, and Ilya Komolkin in early 2020. At its core, Rarible represents an NFT marketplace with a current focus on art and digital collectibles. In July of 2020, Rarible issued its governance token ($RARI) with the eventual goal that RARI token holders would control the Rarible marketplace.
3. Rarible Collaboration/Funding
Rarible has been through three funding rounds which include the following firms: CoinFund, Coinbase Ventures, ParaFi Capital, 1kx, Venrock, and 01 Advisors. Additionally, Rarible partnered with Adobe to tackle intellectual property. Adobe co-founded the (CAI) Content Authenticity Initiative. CAI combats visual misinformation & protects creators through digital provenance. This feature allows consumers to confirm that the creator of the content is them via Adobe Stamps on Rarible or wallets.
Token Information-
Tokenomics
$RARI token has a total supply of 25,000,000 million tokens with a current circulating supply of 7,154,595.97. $RARI is also an ERC-20 token built upon ethereum’s blockchain. Currently, 41,250 tokens are distributed weekly to the Rarible DAO. The Rarible DAO is distributing funds to web3 projects that are being built on the Rarible protocol. Previously, Rarible used to reward buyers and sellers a percentage of their sales in $RARI tokens however, the DAO has proposed to end $RARI rewards due to wash trading.
2. Governance
The governance mechanism allows $RARI token holders to submit proposals through the Decentralized Autonomous Organization (DAO). Token holders have the ability to submit proposals about trading fees, submit new features, curate featured artwork, and decide on the future development of the protocol. Token holders are allowed to submit proposals however the final approval is by the Rarible team. Until all tokens are released into circulation, this will avoid one entity manipulating votes. Some may not agree with this governance strategy because it’s not fully decentralized however, others believe it’s fair since a proposal might interrupt internal operations that token holders might not be aware of. The Rarible team has been transparent with protocol updates and is doing their best to ensure the ecosystem thrives via their Twitter page.
Additional Information-
Extras
In this section, I want to highlight some advancements by the team. Rarible has created innovative features like lazy minting, floor bids, and messaging. Lazy minting allows users to create an NFT without paying any upfront gas fees. The Rarible messenger provides a simple way for artists, collectors, and friends to collaborate. Lastly, floor bidding permits users to place bids for an entire NFT collection at a set price.
2. Technical Analysis
$RARI has had an incredible run from $1 to $50. Ever since $RARI hit all-time-highs, we have seen ~$6 (grey box) act as a support region with six bounces at the support level. Recently, there was a bounce from $6 to $14 - confirming that this level is a support level. The grey shaded support level is the most critical level on $RARI because if the price breaks through this level, $RARI will likely revisit the next support level around $2. In summation, price action does look bullish but the bulls must defend this grey box if bulls should continue to trend back to the upside.
Conclusion-
Today, the $RARI token is trading at ~$7. While the token value may fluctuate, the team’s efforts have been invaluable. It’s no secret that the Rarible team has been forward-looking and has made significant progress. The Rarible team is always leading as it was the first to offer multi-chain support on an NFT marketplace, they were also the first to introduce floor bids, and lastly, they were the first to introduce lazy minting. Although we are early in the NFT era, it is no doubt that Rarible has been leading the way.
Please note that this research is not financial advice and all views are my own