What is Goblin Town? Your ultimate guide

What exactly is Goblin Town and what makes it interesting?

Goblin Town                                 
Goblin Town has made a splash over the last few weeks - Credit: goblintown.wtf
                                

Contents

Goblin Town has shone out in a dark time for the world of cryptocurrency and non-fungible tokens (NFTs). With the market down, the new collection has garnered interest and performed well in a time when the bears have come to play. But what is Goblin Town? Let’s see what we can find out.

What is Goblin Town?

Goblin Town is not a cryptocurrency as such. It would be wrong to talk about things like a goblin town coin or token, or even talk, at least in a conventional sense, about a Goblin Town price prediction. That is because Goblin Town is a collection of NFTs and, since the collection is pretty new, there are still queries as to how Goblin Town works, or what Goblin Town is meant to do.

Let’s start with the name. What does Goblin Town mean? It's a reference to the recent Terra/Luna collapse, when the UST (now USTC) stablecoin became depegged in May 2022. That brought down its associated LUNA cryptocurrency. In doing so, the crypto market, which had been showing signs of bearishness since at least the start of 2022, fell into a slump. Although some analysts describing the state of the market in early June 2022 as the start of a “crypto winter”, a period where the market stagnates following the drop after a crash, others were not so sure as to what might happen. The idea was that things were somewhat different compared to the flat period that characterised the crypto market between the middle of 2018 and early 2021. Because crypto had boomed significantly in 2021, things would be different this time, they said, and there was no real way of telling what the bear market would actually be like this time. However, what was acknowledged was that the cryptocurrency market was sliding down and, in a reference to the 1977 film adaptation of The Hobbit, it was soon described as going “down, down to Goblin Town”.

Cryptocurrency and its associated spheres are a very online sort of world, where memes take hold and, eventually, someone will want to monetise them in some form. Perhaps the most famous example of this is Dogecoin, the crypto that was based on the shiba inu meme and ended up turning into a major player on the market. While there have been goblin-themed cryptocurrencies (most notably GOBLIN), it was in the wake of the May 2022 crypto crash that someone had the bright idea to link to the latest meme, and founded the Goblin Town NFT collection. 

Goblin Town explained

The first thing to say about the Goblin Town collection is that we do not know exactly who is behind it. The collection, which was launched  for minting on 19 May, is the brainchild of an anonymous group of developers. In the overall world of crypto, that is not too uncommon. After all, Satoshi Nakamoto, the founder of bitcoin, is pseudonymous and plenty of crypto projects have doubts as to their founders. But  some investors might prefer a bit more transparency when it comes to something risking their money.
 
The plan behind the Goblin Town collection of NFTs seems, at least at first glance, to be rather haphazard. For instance, while many NFT collections are launched with an announcement in advance, Goblin Town just turned up on the market. Also, while it is pretty common practice when launching a crypto practice to have some kind of roadmap, there are no clear and apparent plans for where Goblin Town will go next and where it wants to go in the future.

As well as that, some NFT collections have copyright in place on their tokens, but that is not true of Goblin Town. Instead, the collection uses something called a no-copyright-reserved Creative Commons licence. This means that the people behind the tokens still get paid, but the virtual artworks themselves are available for anyone to look at and enjoy. The given price of the NFTs was also a little different. The price of minting the tokens was, in effect, the gas price, meaning that the only cost to someone wanting a fresh Goblin Town NFT was that of how long it took the transaction to take place. 

Goblin Town
Goblin Town has sold out - Credit: goblintown.wtf

Goblin Town NFTs are based on the OpenSea NFT market which, in turn, is based on the Ethereum blockchain. There were 9,999 tokens in the collection, with 1,000 of them reserved for the creators. 

At a time when the cryptocurrency market in general and the NFT and metaverse markets in particular have been in freefall, Goblin Town stood out as a bold shot of light. The collection sold out by the end of May, and the tokens continue to be bought, sold, and traded. The collection, which comprises a series of digitally generated artworks of goblins, had a market cap of  just under 59,000 ETH (a little over $112m) as of 6 June 2022. The floor price, that is, the price of the cheapest Goblin Town NFT, stood at 5.68 ETH (around $10,800), while the average price came in at 6.6318 ETH ($12,600). In terms of who owned what, there were 4,603 separate owners of Goblin Town NFTs. 

Final thoughts

A few words of warning: Goblin Town is not entirely transparent about who created the collection. While, again, this is not that unusual in the crypto and NFT spheres, people who want to know who is behind their investment might choose to look elsewhere when it comes to putting their money into NFTs.

Second, there is no roadmap for Goblin Town. While the collection has indicated that it has no plans to have its own crypto token, we are still somewhat unclear as to what, if any, plans it does have.

Third, and perhaps most importantly, the NFT market and its associated metaverse market have taken big hits this year, with the value of most collections and tokens dropping at a faster rate than the overall crypto market. While it may be a little too early to say that the NFT bubble has burst, it may well seem reasonable to suggest that things are not going upward and do not look like moving significantly upward at any point soon.

As always with anything to do with cryptocurrency, it makes sense to exercise caution. You will need to do your own research, remember prices can go down just as easily, if not more so, as they can go up, and never invest more money than you can afford to lose.

FAQs

We don’t know for certain, because the people who launched Goblin Town in May 2022 are anonymous. 

At the time of writing (6 June 2022), there were 4,603 owners of 9,999 Goblin Town NFTs. The collection’s founders earmarked 1,000 NFTs for themselves when it first came out.

Something that makes Goblin Town stand out is that, when it was launched, users only paid gas fees to buy tokens. The collection has no plans to launch a native cryptocurrency, either. 

Further reading

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