MEXC Launches First NFT Index for Blue-Chip Digital Assets

The traditional barrier to blue-chip NFT ownership has been prohibitively high for everyday investors. Collections like Moonbirds, Clone X, Meebits, and Doodles command floor prices that place them out of reach for most participants. For instance, Doodles currently sits at 11 ETH while Moonbirds trades at 23 ETH, translating to approximately $17,248 and $36,063 USDT respectively at recent ETH prices around $2,000. This pricing structure has effectively prevented widespread participation in what many consider the premium segment of the NFT market.

Compounding the accessibility issue is the broader market context. When compared to April 2022, ETH price has declined from 3,579 USDT to a recent low of about 881 USDT before recovering to nearly $2,000. This volatility has impacted NFT valuations, with prices of most blue-chip NFTs declining by approximately 3x when calculated in USDT terms. Despite this correction, the fundamental value proposition of top-tier NFT projects remains intact, creating an opportunity for innovative access solutions.

MEXC’s NFT Index represents a groundbreaking approach to democratizing blue-chip NFT ownership. The exchange purchases entire NFT collections or significant portions thereof and divides them into millions of tradable index units. For example, the NMOON index is supported by Moonbirds #5816, #347, and #8298 purchased by MEXC, then divided into 10,000,000 indexes available for free purchasing and selling. The platform has already seen purchase volumes reach 1,000,000 units, indicating strong initial demand for this fractional ownership model.

The mechanics of the NFT Index system are designed to replicate traditional spot trading while providing exposure to underlying NFT assets. Users can trade index shares just like conventional cryptocurrency assets, gaining proportional rights to the underlying NFT collections. This includes entitlement to airdrops, secondary NFT distributions, and other benefits that would normally accrue to full NFT holders. When an NFT project issues tokens or conducts airdrops to NFT holders, MEXC distributes these benefits to index holders according to their position share.

Beyond simple trading, the system offers redemption capabilities. Purchasers can contact MEXC to redeem complete NFTs when their share reaches sufficient levels, with the platform facilitating redemptions on a weekly basis. This hybrid approach combines the liquidity benefits of fractional ownership with the eventual possibility of full NFT acquisition, creating a flexible investment vehicle for both short-term traders and long-term collectors.

MEXC has launched nine distinct NFT Indexes covering major blue-chip collections including Moonbirds, Clone X, Azuki, Meebits, Doodles, and Invisible Friends. These are represented by tickers NMOON, NCLONEX, NAKI, NMEEBITS, NDDS, and NIFRIEND respectively. The breadth of this offering makes MEXC not only the first exchange to introduce NFT Indexes but also the platform with the most listed blue-chip NFT Indexes in the cryptocurrency space.

The timing of this innovation aligns with significant developments in the broader NFT ecosystem. The platform’s approach to capturing value from NFT airdrops is exemplified by their Moonbirds strategy. MEXC acquired NFTs before Moonbirds conducted its second-generation NFT airdrop, and after receiving the Oddities airdrop, the platform will sell these secondary NFTs at competitive prices, distributing proceeds to NMOON index holders. This demonstrates how the index mechanism can capture layered value from NFT ecosystem developments.

The rationale for focusing on blue-chip NFTs becomes clear when examining the broader NFT market dynamics. While the overall NFT market valuation has reached $24.53 billion, approximately 99% of NFT projects have been unsuccessful or face uncertain long-term prospects. This concentration of value in the remaining 1% creates a compelling case for targeted exposure to established projects with proven communities, development roadmaps, and ecosystem support.

The risk profile of top-tier NFTs remains relatively favorable even after market corrections, with the ‘risk value of zeroing’ described as fairly low for the surviving 1% of projects. This resilience, combined with the launch of Ethereum 2.0’s on-chain ecology and NFT’s expanding role in SocialFi, GameFi, Metaverse, and NFTfi applications, positions blue-chip NFTs as a strategic entry point into the emerging Web 3.0 ecosystem.

MEXC’s four-year strategic plan acknowledges this potential, identifying NFT as one of approximately ten key sub-tracks alongside public chains, DeFi, and DAOs. The steady rise of NFT applications across multiple sectors suggests that accessible investment vehicles like the NFT Index could play a crucial role in onboarding the next wave of participants to the digital collectibles space, bridging the gap between traditional cryptocurrency trading and the specialized world of NFT investment.