What Makes an NFT Valuable?
You surely have been bombarded with the hype around NFTs, and have probably been wondering “what the hell is a Non-fungible token?!!” First of, the “non-fungible” of your token signifies the uniqueness of something that is irreplaceable with any other alternative. This 1/1 asset is part of Blockchain and basically represents a cryptoasset in video, drawings, JPEG, or any other sort of “Art” form, bought and sold for a specific price.
So, the wealth of this asset is set by its proper copyrighted ownership. Nay mate! After reaching this advanced phase in NFTs, there surely is something much more than simple ownership that indicates the million values settled in market.
So what actually makes it exclusively valuable nowadays?
1. Community
2. Utilities & Roadmap
1. Community
In NFTs and as an investor, there are no rights and wrongs. The community is the essence of a successful story and it all goes down to the hype, activity and friendliness on social media platforms, especially with Discord. So one might rely on their intuitive-rationality (if this makes sense) to decide whether to invest or not. But could we actually wing it? Can someone actually put thousands for a sole innate feeling? No.
Good news tho! There are some specific green flags in projects that could actually help you spot potential value.
2. Utilities & Roadmap
Short-term/ Internal Roadmap
When looking at an NFTs’ roadmaps, there are some promising internal utilities including:
- Airdrops
Random free crypto, NFT or token distribution
- Giveaways
- Discounts, and
- Gamification
These strategies have been helpful especially with gamification and GameFi where users are earning their digital assets through gaming. However, short-run utilities are extremely helpful at first, but need to be backed up with promising external and long-run roadmaps guaranteeing value even if the project goes down.
Long-term/ External Roadmap
a. Metaverse
Metaverse potentiates thousands of thousands of business opportunities, especially with the access NFTs provide to this virtual world. So ask yourself,
o Is this NFT project even willing to utilize its tokens in the Metaverse?
o Are they investing in Decentraland or Sandbox?
o What are they securing in these lands?
b. Tangible items
One NFT successful future prospect would also be in the tangible assets it provides. Merch clothing and physical portraits of any type are one example of long-term products that sustain some value in cases of market drops.
c. Shares and trading
Let’s talk some business. When it actually comes to the NFT dimensions and potential investments, the digit numbers get so high that you will need something more than merch and games to guarantee some good fortune. You need business plans. You need business models and promising investments.
Shareholders plan is one example of a well-built business prospect that conditions its activation to trading leading to soaring floor prices where every NFT holder owns his/her/their shares exclusively. Know more
In a nutshell…
It might be impossible to assure that an NFT investment is actually a stable and guaranteed revenue-generating one, but there some teasers that indicate future prospects. Mind you, you still need to look for unique utilities and coherent communities that sound interesting for your investment goals. Join our community and let’s discover what legendary NFTs could make.
