There are an increasing number of scamNon-Fungible Tokens (NFT)projects and NFT creators who are here for the big bucks. Scams seem to be on the rise in this bear market too. Therefore, it might be hard to choose a worthwhile NFT collection among the thousand projects that have the potential to succeed.
As a result, we've put together a few things to consider when investing in an NFT collection and how to identify the best ones. Please excuse us for using some of our favorite NFT collections as examples.
A good team with relevant industry experience is crucial for the success of the NFT project. It's also a plus if the team has enough partnerships to add value and exposure to the project. You can find this information on its website and social media accounts.
In recent years, however, we've seen an exciting phenomenon emerge within the cryptocurrency community: anonymous founders. Even though the team is anonymous, that doesn't mean you should disregard their NFT collection.
For many years, no one knew the team's identity that created theBored Ape Yacht Club. Nonetheless, we all know the story of BAYC's success.
One of the reasons whyy00ts NFTwent viral recently was its exclusivity. As a result, there were not many people who were able to mint the NFT. In order to be considered, interested individuals had to submit an application to the team members.
It is likely that many people battling for mint nowadays want to flip it for a profit and re-list it as soon as possible. So sometimes, it’s better to have exclusivity to sustain the project.
It is common for good projects to have thoughtful roadmaps. Go to the project’s website to ensure the roadmap is achievable and look for massive promises within ridiculously short timeframes.
Check out what the utilities are on offer as the days of owning NFT just as a PFP are over. Does it provide access to certain events and a means of generating passive income? Are there any preferences for future NFT collections? etc. Of course, there's no guarantee that all good projects start with a roadmap, but most do.
Having a loyal community is important for the success of any NFT project. If you ask anyone whyDeGodsis so successful, they will probably say it is because of the community. It resonates with people, and they proudly display Dead Gods on their profile pictures.
It is good to have a growing community since it means more people are backing your project, but fake followers will not do you any good. Participate in conversations in Discord or Telegram to evaluate the quality of the community by observing how people behave.
Analyze how the community responds to the project and whether it receives any attention. Examine the website and social media accounts and ask yourself:
Crypto projects backed by celebrities have gone far, and some have become complete scams. So it's essential to be careful about that. This means you should be selective and pay attention to who stands behind the project.
Most of the most successful NFT collections are built on Ethereum. The Ethereum-based NFT marketplaces also have a higher volume than others. Thus Ethereum NFTs have more chance of getting noticed.
Today we have discussed what to look for to reduce your risk of getting scammed or losing your hard-earned money when buying an NFT. However, if you want to analyze a project in-depth, you may need to go the extra mile. You'll learn more about this next week and some tools that can assist you along the way. Until then, stay tuned and keep learning. Buh-bye!