What is cryptocurrency Aavegotchi (GHST) and how does it work?

What is Aavegotchi (GHST)?

Aavegotchi is an NFT game merged with a DeFi protocol that allows the staking of tokens within the system. It is based on the Tamagotchi game and is hosted on the Aave (AAVE) network. Tamagotchi was rather popular during the nineties, when practically everyone had a Tamagotchi friend to feed, bathe, clothe, and nurture into adulthood. With Aavegotchi, players can create their own Gotchis, which are represented by non-fungible tokens that can be staked.

Users can also liquidate their staked Gotchis, i.e., NFTs, in which case they would lose their Gotchi in the game. Players can buy their own Gotchi, or more of them, while every Gotchi has a different set of characteristics and traits. The value of Gotchis also varies – the more unique and rare a Gotchi is, the greater its value is.

The utility token GHST cleverly translates the meaning of the ticker AAVE, which means “ghost” in Finnish. Characters also look like ghosts and are pixelated in the spirit of the famous Tamagotchi virtual pet that most nineties kids enjoyed. The Aavegotchi game uses incentives for players, rewarding them in GHST, while users can also invest funds and time in their Gotchis, which makes their NFTs more valuable.

How Does Aavegotchi Work?

Aavegotchi works as a Tamagotchi-like game, but using blockchain and based on the Aave protocol. Players can buy Gotchis as NFTs with GHST tokens and “upgrade” their avatars by playing minigames, dressing them up, and taking care of them. The more time and money a player spends on their Gotchis, the more valuable they become as NFTs. Players can also earn GHST based on their activities.

So-called rarity farming seasons are regularly organized to reward users based on their Gotchi’s experience, rarity, uniqueness, and loyalty. Users receive rewards in each round of rarity farming based on transparent rankings. Gotchis also have value as in-game NFT collectibles. The reward funds come from general sales on the network when users buy clothes and various accessories for their Gotchi avatars.

Aavegotchi is hosted on Aave, and the Aave protocol exists as a side-chain on the Ethereum network, which is why users need to create a MetaMask wallet and have an ETH address. To play Aavegotchi, you first need to have cryptocurrencies in your ETH wallet. You either need to buy Ethereum (ETH) or Polygon (MATIC) and bridge the two blockchains to enable cross-chain operations. You will also need GHST to buy Gotchis and connect to the Aavegotchi network.

Who Are the Founders of Aavegotchi? (History of Aavegotchi)

Aavegotchi was founded by Pixelcraft Studios in 2020 by a team that has a strong background and vast experience with DeFi and NFTs. The Pixelcraft Studios and Aavegotchi platforms were founded by Jesse Johnson and his pseudonymous co-founder Coder Dan. Many other team members are working on the project under a pseudonym.

Jesse Johnson also created Bullionix, which is the first NFT to be backed by gold. The idea behind Aavegotchi is to allow players to use Gotchis as collateral while creating an engaging game where players can upgrade, sell, and buy collectibles in the form of NFTs.

What Makes Aavegotchi Unique?

Aavegotchi is not just a gaming platform where users can buy and create in-game collectibles. The use of Gotchis goes beyond NFTs and game collectibles, as Gotchis can be used as collateral as well. To enable interaction with Gotchis, users first need to deposit other supported cryptocurrencies, which gives value to Gotchis aside from player activity.

By posting collateral, players can also earn interest that is visible in real-time. Aside from earning interest, users can also earn GHST rewards. The network generates income from the market of collectibles and wearables, and from minigame fees.

What Gives Aavegotchi Value?

Aavegotchi’s value is derived from its technical capacity, technology, and utility. Use cases, the relevance of the DeFi sector, and the technology behind the project are elements that define the intrinsic value of Aavegotchi as a project. Aavegotchi holds value both as a blockchain-based game, similar to CryptoKitties, and as a DeFi protocol where users can earn interest on deposited cryptos.

The intrinsic value of Aavegotchi often doesn’t coincide with the market value of GHST. GHST is susceptible to frequent changes that are mostly driven by volatility in the cryptocurrency market, and specific factors that can influence the price of GHST.

How Many Aavegotchi (GHST) Coins Are There in Circulation?

There are currently GHST in circulation out of a total of GHST. The token doesn’t have a capped supply as an unlimited number of GHST can be purchased from the Token Bonding Curve. As more GHST are bought from the TBC, the supply increases, as does the cost of subsequent GHST bought from the TBC. Similarly, GHST can be sold back to the TBC at any time, which both reduces the supply and lowers the price of subsequent tokens bought from the TBC.

The number of GHST coins in circulation multiplied by the current price of GHST in the market is equal to the market cap of Aavegotchi. The market cap ranks the crypto and defines its market share and dominance.

Other Technical Data

You can pick your Gotchi through a portal that can be summoned with the use of the GHST cryptocurrency. Aavegotchi holds events that are known as Haunts, where players can buy Gotchis directly from Aavegotchi. Otherwise, users can purchase their Giotchis from the NFT market.

Every portal has ten Gotchi avatars, while you can choose only one from each portal to use in the game. The market of Gotchis and portals is known as the Gotchi Baazaar, and you can also sell your NFTs there. Use filters on the Baazaar to find the best offers and lowest prices to buy your Gotchis.

Aavegotchi GHST

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Bitcoin BTC

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Ethereum ETH

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XRP XRP

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How is the Aavegotchi Network Secured?

The Aavegotchi network runs on Aave, and just like Aave, it is secured by the Ethereum network. The Ethereum network runs on Proof of Work, which means that Aavegotchi is likewise secured by the same protocol. Ethereum is preparing for a transition to Proof of Stake to enable scaling and more efficient operations.

Aavegotchi smart contracts are made open source to increase the chances of spotting errors if there are any.

How to Use Aavegotchi

Aavegotchi can be used to play with Gotchis in an array of minigames, with wearables and upgrades, while users can also earn interest on their collateral. Aavegotchi functions as a blockchain-based game and as a DeFi protocol for staking and NFTs.

Users can sell, buy, and upgrade their Gotchi while earning GHST and interest based on their activities and staking. Aavegotchi allows users to own and manage rare and unique NFTs that go beyond in-game collectibles.

How to Choose an Aavegotchi Wallet?

A popular wallet option for playing Aavegotchi is MetaMask, given the fact that you will need it to bridge Ethereum, Polygon, and Aavegotchi to start using the platform. 

For those simply wanting to trade or invest in GHST, there are plenty of storage options available and the type of wallet you choose will likely depend on how much you need to store and what you intend to do with it.

Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of GHST for more experienced users.

Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of GHST or more novice users.

Online wallets or web wallets are also free and easy to use, and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your GHST, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.

Kriptomat offers a secure storage solution, allowing you to both store and trade your GHST tokens without hassle. Storing your GHST with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Buying and selling GHST, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

Aavegotchi Staking

GHST holders can stake their tokens in the Aavegotchi Staking Contract in order to earn a non-transferable balance of FRENS. FRENS can then be converted into Raffle Tickets for the chance to win wearables, or into Drop Tickets for the chance to win portals and virtual land.

Conclusion

Aavegotchi is a prominent project with a unique approach to managing and creating NFTs and DeFi use cases. The dev team plans to add more functionalities in the future as the project continues to develop. Players can manage their NFTs while having fun and create more valuable and unique Gotchis which they can profit from, while you can also earn interest on collateral used to back the Gotchis you own.

Tackling the uniqueness and value of NFTs and the rising popularity of the DeFi sector, alongside blockchain gaming, Aavegotchi makes a promising combination of concepts related to decentralized finance.

Join the crypto revolution and start your Aavegotchi journey today!

Aavegotchi FAQ

Where do Aavegotchis live?

Gotchis exist in a virtual world known as the Gotchiverse Realm, which is split into three distinct zones: the Citaadel, the Grid, and the Beyond. Players can purchase NFTs known as REALM which represent parcels of land. REALM can then be farmed by Gotchis to produce resources and built on.

What traits do Aavegotchis have?

Gotchis are born with six traits: aggressiveness, energy, spookiness, brain size, eye shape, and eye color. Each trait has a rarity – common, uncommon, rare, or mythical – which is chosen randomly according to Chainlink’s Verifiable Random Function. Gotchis with less common traits can be more valuable, while their spirit force, i.e., the type of collateral used to create the Gotchi, can also affect trait values.

How to buy Aavegotchi?

Buying GHST is as easy as visiting Kriptomat’s how to buy Aavegotchi page and choosing your preferred method of payment.

How to sell Aavegotchi?

If you already own GHST and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.

Aavegotchi Price

Aavegotchi price is in constant flux and is susceptible to frequent changes, driven by volatility and affected by a multitude of specific factors. GHST can rise and dip radically within a relatively short time frame, while you can keep up with real-time changes on Kriptomat.

As well as traditional factors such as market sentiment, the flow of assets on exchanges, and the economy in general, the price of GHST is also affected by the number of tokens bought from the Token Bonding Curve and the popularity of the Aavegotchi game.

The current Aavegotchi price is EUR.

The 24-hour trading volume of GHST is EUR. GHST is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of EUR. It has a circulating supply of GHST.

Register now to begin your journey into the world of Aavegotchi and cryptocurrencies with with Kriptomat!

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