In last article – MEXC NFT Index Token Introduction，we have presented what is NFT Index Products. The following paragraphs will teach you how to trade NFT Index Products.
First of all, let us dive into the strengths of NFT Index Products
- The purpose is to utilize the liquidity on the platform to buy premium NFT assets. Then, by launching their corresponding Index products, we can provide more channels for the users to participate in the blue-chip NFT sector at a low cost.
- Users that hold 1 million Index tokens can redeem a corresponding NFT.
- The NFT Index price is anchored to the NFTs bought from the secondary market, such as Opensea. It has no direct connection with the NFT project party. However, we are contacting the project party for any possible further collaboration.
The NFT Index products can solve the major pain points, which are as follows:
- Projects in the NFT market differ in terms of quality. That’s why MEXC has formed a special department that focuses on NFT investment and research. Thanks to the department, all the NFT projects launched on MEXC are filtered. We do not support those high-risk projects. MEXC prefers high-quality projects that minimize the user’s investment risks and cost.
- The NFT market has low liquidity. That’s why MEXC launches the NFT Index, which corresponds to the premium NFT project, to allow users to directly join the NFT trading with high liquidity.
- It’s hard to participate in blue-chip NFT projects since they are too expensive. Suppose CloneX holds its token airdrop next month. Its NFT unit price will be too high and makes users stand back, and thus, the users will lose the opportunities to make wealth. However, the NFT Index allows you to hold the Index tokens in varying proportions. When our portfolio receives airdrops, the Index holders can also get the same proportion of airdrops.
Below are the reasons why you should trade NFT Index products
The NFT Index products are currently in their infancy, which offers many opportunities to users. For example, if you think that Moonbird’s price will surge to 50 ETHs in a month, its NFT floor price will be around 150,000U. But buying 1 million of $NMOON Index will only cost you around 100,000U. You can earn profits by redeeming the NFT with $NMOON and selling it in the secondary market, such as Opensea. Also, you may earn profits by buying the NFT Index, which is undervalued relative to its corresponding NFT price and selling it when the price rises.
At the same time, NFT Index token holders can enjoy the corresponding NFT benefits, such as the airdrop benefits.
NFT Index products are not the NFT products issued by the corresponding NFT project party. So far, we do not have any direct connection with the NFT project party. Just like other buyers, MEXC buys the NFTs to fill the portfolio. We are also the collectors or can be known as the institutional buyers.
The Index token is only anchored to the corresponding NFT asset to issue the Index product. The product aims to increase the NFT liquidity and not dilute its original value. The users can redeem the corresponding NFT with 1 million Index tokens but not the tokens issued by the NFT project party.
The value of the NFT is dependent on the project’s development and efficiency. The corresponding Index product will not drive the value.
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