With the release of the Asteroid Protocol there has been an explosion of creativity on Cosmos Hub. At the time of this writing, there are over 15K inscriptions and ~4600 CFT-20 tokens. If you were around for the early days of ETH nfts or Bitcoin inscriptions, you’ll likely draw a lot of similarities.

Unique to the Asteroid Protocol, however, is an emerging trend where inscription creators are minting related CFT-20 tokens in the early stages of a project. Cosmowave, Asteroid Boy, Planet 9, Cosmo Rats, DogwifCat, IBC Gangsters, FEPE, and PNKS are all sub-10K inscription collections with related CFT-20 tokens. And there are a lot more.

Think about how this differs from what we’ve seen with other NFT collections. Traditionally, NFT projects introduce tokens later in the lifecycle. Bored Ape Yacht Club ($APE), Hytopia ($TOPIA), Cool Cats ($MILK)—all created tokens much later with some defined utility or purpose. So what’s the reason for this proactive CFT-20 minting on the Asteroid Protocol?

In part—since it’s so easy to create a CFT-20—people are likely minting them to reserve a token name that matches their project name. Similar to buying a domain name. Others are creatively using their tokens as the currency for purchasing inscriptions—a workaround for not yet having an inscription marketplace. Others still may be planning some longer-term utility.

Looking ahead, does it matter if the CFT-20s associated with these early inscription collections have utility? I don’t think so.

Instead, as wider adoption and increased trading volume occur, I anticipate the emergence of a market where this specific group of CFT-20s gain value and are actively traded, reflecting their role as extensions of the community built around the rare early inscription collections.

Why? A few reasons 👇👇👇

Scarcity as a Value Driver: Limited availability of early inscription collections inherently increases their value, which in turn may elevate the worth of their associated CFT-20 tokens. For many of these early collections, there are less than 100 inscriptions. This is a barrier to entry. The CFT-20s provide a more liquid alternative.

Alternative to Direct Inscription Ownership: For those unable to acquire rare inscriptions, owning the related CFT-20 token offers an alternate form of participation and investment in the project. We’ve seen the high cost of the earliest Bitcoin inscriptions—now imagine a BRC-20 token associated with these most sought-after collections. If you couldn’t buy an inscription, would you trade in the BRC-20? I think I would.

Community Engagement and Branding: Like owning the inscription itself, the CFT-20 tokens associated with early inscription collections may become symbols of belonging to a community, akin to owning a piece of digital heritage or brand identity within the Cosmos Hub. They “extend the community aspect” of the project beyond the limited number of inscriptions. Some of them have catchy names too!

Historical Significance and Collectibility: These early ‘inscription tokens’ carry a story and history that may appeal to collectors, adding to their desirability independent of utility.

Speculative Trading and Investment: Similar to meme coins, these tokens may attract traders and investors speculating on their future value based on the project’s growth and community strength. Some of the collections have unique meme appeal. Asteroid Protocol might have its own unique meme coin craze.

Potential for Future Utility: The possibility that these tokens might acquire utility in the future can also drive interest and trading.

Final Thoughts

In conclusion, the Asteroid Protocol’s blend of early inscriptions and their associated CFT-20 tokens is carving out a new niche in the Cosmos ecosystem. As we’ve seen, the limited numbers of these early inscriptions naturally elevate their value, a trend likely to extend to their related CFT-20 tokens. These tokens aren’t just digital assets; they embody a piece of the community’s spirit and history, making them more than mere investments. They represent a tangible connection to the creative burst that the Asteroid Protocol has ignited.

For enthusiasts and investors alike, these tokens offer an alternative way to participate in and benefit from the growth of these inscription collections. Whether driven by the desire to be part of a community, an attraction to the rarity and historical value, or speculative motives, the market dynamics surrounding these CFT-20s are poised to be as diverse as they are vibrant. Much like meme coins have shown, a combination of community fervor and scarcity can turn these tokens into highly sought-after assets, regardless of their immediate utility. In essence, the early CFT-20s on the Asteroid Protocol are not just creating a new market; they’re fostering a new culture of digital asset appreciation and community engagement.