The Cryptocurrency That Was Worth $ 3 Million – Why Is Art Gobblers Crazy?

A slightly out of the ordinary number – Every week, new projects NFT throw. Most of the time, success is mixed. However, here and there some projects stand out and they are seeing a great deal of enthusiasm. This has recently been the case with the project Devourers of artlaunched by the co-creator of “Rick and Morty” And the society Paradigm.

Gobble Art: the new NFT trend

Justin Roiland is the co-creator of the anime series “Rick and Morty”. In January 2021, he entered the NFT sector through the sale of various works in the form of NFTs. One of the jobs called “First Rick and Morty Crypto Art” had been sold at auction for $ 150,000.

Subsequently, he quickly turned to his second NFT project. Indeed, in February 2022, the project’s Twitter account Devourers of art was created. We had to wait until July 1st for the first publication of the project to appear. For information, this project was born from a cooperation Between Justin Roiland And the society Paradigm.

This NFT project aims to create a “Autonomous ecosystem of artistic creation thanks to financial incentives”. This ecosystem has two types of tokens:

  • the GOO token allow artists to create NFTs through the creation tool developed by Paradigm;
  • The NFT devourers which are created in exchange for GOO tokens.
Representation of the Art Gobblers ecosystem – Source: The Block

NFTs premiered on October 31 and quickly became all the rage on OpenSea and the new Blur platform. More specifically, the collection records a total volume of 8,981 ETH, more 14 million dollars. NFT currently present in initial price of 14.7 ETH.

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Community project or ATM?

Faced with the enthusiasm for this project, many Internet users have tried to carry out further research. This was particularly the case with our KonohI national, which was able to bring together different sources to allow us to analyze the launch of this project in the most effective way possible.

Create a healthy community

Initially, the project was presented as 100% community.. In fact, on September 15, Art Gobblers had published a thread in which it presented the community aspect.

Discussion published by Art Gobblers.
Discussion posted by Art Gobblers – Source: Twitter

Furthermore, this thread was also possibility to recruit artists, owners and builders to support the project and the growth of the budding community.

“We have been building our community of artists, collectors and builders since May. We started by selecting a first group of humans that we admired for their contributions to crypto-art. This group then nominated other deserving people, who nominated other people and so on. “

Publication of Devourers of art

Drift and opacity during mint

Unfortunately, this supposedly solid foundation was quickly shaken when the project was released. The proof: Internet users like @Pons_ETHto have unveiled the new reality. In fact, it looks different crypto influencer they had access to the mint of the project through a list of allow.

Beyond the list of allow who severely lacking in transparencythe choice of influencers who were able to access the project was not everyone’s taste.

Free mint screenshot from different influencers.
Screenshot of the free mint of different influencers

GOO: the absolute ponzi?

Subsequently, several questions arose regarding the GOO token. As presented earlier, this allows you to mint new NFTs.

In parallel, the token can also be pointed in the form “Art factory” to generate more GOO tokens. Additionally, holders of an NFT Art Gobblers are granted a multiplier when staking of their GOOs, generating even more tokens.

Unfortunately, the project could be headed for high centralization. In fact, although the NFT Art Gobblers are quite decentralized with 80% of the owners having only one copy, the centralization will be felt on the GOO token.

As we have seen, the holders of an NFT in the collection have a multiplier when staking. However, those who do not hold NFTs have little incentive to hold GOOs. As explained Dave White on Twitter:

Accumulating GOO without owning a Gobbler is a bad strategy, because everyone will produce GOO and your share of the total GOO pool will quickly be reduced to zero. “

Comparison of the GOO generation with or without Gobblers.
Comparison of the GOO generation with or without Gobblers

In fact, this mechanism inspires many Internet users into a situation massive landfill of the first members projects on newcomers who wish to participate. Despite the widespread enthusiasm around the project, it may be prudent to avoid the FOMO in order not to end up in the outgoing liquidity.

$ 3 million for a crashed token?

If you were interested in the project, you have potentially stumbled upon the mind blowing price of the GOO token. More precisely, on the CoinGecko reference site, it is displayed at the modest price of $ 3 million per token. A staggering price that could turn the heads of more than one cryptocurrency holder.

The wrong GOO price - Source: Coingecko.
The wrong GOO price – Source: CoinGecko

However, this price is not real and it is none other than the fruit of a lack of cash on Uniswap. In fact, on a closer look, the GOO is only tradable on Uniswap via 3 pools:

  • 1 ETH / GOO pool;
  • 2 USDC / GOO pools.
The three GOO pools on Uniswap.
The three GOO pools on Uniswap

At the end of the day, the price is distorted due to the second USDC / GOO pool which features a price of $ 3,034,000. A staggering price caused by the lack of liquidity in the pool. It basically has less than 0.001 ETH deposited.

The price of the Art Gobblers token would have been abused.  This is demonstrated by the scarce liquidity of the GOO / USDC pool.
GOO / USDC Pool Cash

The price is the result of a calculation made on the liquidity present in the two assets.

At the same time, the NFT ecosystem is witnessing a battle of titans. Indeed, a new NFT exchange platform, Blur, aggressively vampirizes the market share of the giant OpenSea.

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