How Can You Tell A Good NFT Project?
The popularity of non-fungible tokens (NFTs) has seen an unprecedented boom in the past few years. More people are getting in on the action, armed with answers to basic questions like where is an NFT stored? Now common knowledge, and new artists using tools to create their artwork such as the text-to-image NFT generator we offer here at Nightcafe. They also have digital wallets to keep their digital assets safe.
But as the space gets more saturated with content, it becomes harder to distinguish good projects from fads. You’ll need a good eye, to do a lot of research, and have a bit of luck to find profitable NFTs. Generally, though, you can tell the probability of an NFT’s success by looking at its background, community, roadmap, social presence, utility, innovation and rarity.
What To Look For In A Good NFT Project
Investing in NFTs is no small feat. So it makes sense to do due diligence before putting your cash behind a project. Just because it’s listed on one of the best places to sell NFT art, such as Opensea, doesn’t automatically mean it’s golden. A good NFT project should have a good combination of the following elements:
Dependable Founders
When you invest in NFTs, you’re investing in the founders and creators of the project. Determine if they’re in it for the long haul or just trying to make a quick buck. Check their background, track record and reputation. Take steps to see if their vision aligns with what you want from the project.
Committed Community
Does the NFT project have a community backing it up? An NFT with great potential for success has a cultural following invested in the project. If there’s a sizable number of people associated with the project who—even better—speak passionately about it, there is a better chance it will be profitable.
Reliable Roadmap
NFTs should have a roadmap that details their goals and strategies. They need to outline how they’ll achieve and sustain their long-term value. Ask yourself if the project’s roadmap is feasible before you invest.
Established Social Presence
A project with no social presence will have difficulty finding buyers. Pay attention to its channels. See if they have a lot of followers and if they actively keep their audience engaged while trying to increase their reach.
Exclusive Utility
NFTs aren’t just mere collector’s items anymore. A good project should have exclusive utility, whether that means access to extra content, membership to exclusive clubs, or invites to industry events.
Imaginative Innovation
Innovation drives the NFT space. Any successful project creator understands that and strives to level up their content to exceed expectations. Be wary of NFT projects that don’t do anything new or just copy existing concepts.
How To Find Good NFT Projects
Social media is your best friend when it comes to finding good NFT projects. Analytics platforms can also be helpful if you want a more quantitative insight into a project’s performance. Here’s a breakdown of where you can find undertakings for investment.
Social Media
Twitter is a treasure trove of information about NFTs. Just by following relevant hashtags, you can learn about different up-and-coming projects and the details of each. YouTube and TikTok are also excellent sources, especially from NFT personalities and advisors that you can follow for advice.
Community Channels
NFT projects with a following will likely have a Discord or Telegram channel where they connect with their community. Joining these can give you insight into the project, both from the founders themselves and like-minded individuals like you.
Analytics Platforms
You can find more quantitative information about NFTs on analytics platforms such as Nansen.ai to help you make a data-backed decision for your investment.
Final Thoughts
You can quickly tell a good NFT project over one that’s all hype by doing some research. This understanding will help you properly invest your money and leave you with something valuable that appreciates over time.
Knowing the signs of a good NFT project can also help you with future NFT projects. It’s not complicated. With NightCafe, you can even make NFTs without coding! So get in on the ground floor of the next biggest thing.