7 things to watch out for while investing in your next NFT project

Investment in a worthy NFT collection

There is an increasing number of frauds Non-Fungible Tokens (NFT) projects and NFT creators who are here for the big money. Fraud seems to be on the rise in this bear market as well. Therefore, it can be difficult to choose a worthy NFT collection among the thousands of projects that have the potential to succeed.

As a result, we’ve put together some things to consider when investing in an NFT collection and how to identify the best ones. Excuse us for using some of our favorite NFT collections as examples.

Let us begin:

Team

A good team with relevant industry experience is essential for the NFT project to be successful. It is also a plus if the team has enough partnerships to add value and exposure to the project. You will find this information on the website and social media accounts.

In recent years, however, we have seen an exciting phenomenon emerge within the cryptocurrency community: anonymous founders. Even though the team is anonymous, that doesn’t mean you should ignore their NFT collection.

For many years, no one knew the identity of the team that created Bored Ape Yacht Club. Nevertheless, we all know the story of BAYC’s success.

Exclusivity

One of the reasons for that y00ts NFT went viral recently was its exclusivity. As a result, not many were able to mint the NFT. To be considered, interested individuals had to submit an application to the team members.

It is likely that many people fighting for the coin today want to flip it to make money and relist it as soon as possible. So sometimes it is better to have exclusivity to maintain the project.

Roadmap and tools

It is common for good projects to have well-thought-out roadmaps. Go to the project’s website to make sure the roadmap is achievable and look for massive promises in ridiculously short time frames.

Check out what tools are on offer when the days of owning NFT just like 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 is no guarantee that all good projects start with a roadmap, but most do.

Society

Having a loyal community is essential to the success of any NFT project. If you ask someone why DeGods is so successful, they’ll probably say it’s because of the community. It resonates with people and they proudly display the Dead Gods in their profile pictures.

Having a growing community is good as it means more people are supporting your project, but fake followers won’t do you any good. Join conversations in Discord or Telegram to evaluate the quality of the community by observing how people behave.

To have traction

Analyze how the community reacts to the project and whether it receives attention. Examine the website and social media accounts and ask yourself:

• Is the art unique and easily identifiable by others?
• Is it exciting and has long-term potential?
• Do most of the NFTs belong to the same people, or are there many unique holders? Based on the blockchain, you can verify this by looking up the NFT’s address and transaction history on Etherscan, Solscan and BSCscan.
• What do social media follow after the project? Also, who are these followers? Is it the robots?

Celebrities

Celebrity-backed crypto projects have gone a long way, and some have become outright scams. So it is important to be careful about it. This means that you should be selective and pay attention to who is behind the project.

Block chains

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 a higher chance of being noticed.

However, NFT projects at Solana and BNB chain have also gained traction in recent months due to their low gas fees and faster transaction speeds. Among the best examples are DeGods and Pancake Squads.

Today we have discussed what to look for to reduce the risk of being 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 will learn more about this next week and some tools to help you along the way. Until then, stay tuned and keep learning. Buh-bye!