This Third-Party DApp Lets You Tokenize Your CryptoKitties
So you spent upwards of $100,000 to purchase one of the hottest digital felines on CryptoKitties — now what?
That’s the question plaguing many users of CryptoKitties, which remains the most popular decentralized application (dApp) on Ethereum, per DappRadar, but — despite receiving $12 million in venture funding — is struggling to grow its active user base beyond a core of 500 dedicated fans.
To aid in that process, the development team behind CryptoKitties has encouraged third-party developers to join the “KittyVerse” by using the dApp’s public API to build applications that capitalize on the fact that, as ERC-721 tokens, kitties are not confined to creator Axiom Zen’s servers. (External use of CryptoKitties tokens is still subject to the company’s terms of service.)
One such third-party dApp is Kitty.Kred, through which CryptoKitties users can create collectible tokens for each of their digital felines.
These meta-tokens are not tokenized in the sense that they represent ownership rights in the original ERC-721 token itself (i.e. security tokens), but they do allow kitty owners to create fixed-supply collectible coin sets that feature the kitty’s likeness.
Users will need to spend, CƘr, a token created by the dApp’s developers, to create the coins, but they can recoup this fee — and perhaps even turn a profit — by selling the coins to other users and/or activating royalties on future marketplace sales.
Notably, although CryptoKitties tokens exist as non-fungible ERC-721 tokens on the Ethereum blockchain, Kitty.Kred coins are, by default, saved to the Stellar blockchain. Kitty.Kred chose to use Stellar rather than Ethereum to minimize gas costs associated with ETH transactions, which should make it easier to onboard users who do not own cryptocurrency. However, users who prefer to hold their coins in an ethereum wallet can export them, with the stipulation that these transactions will incur gas fees.
Featured Image from Axiom Zen
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