What To Look For In NFT Projects
With so many NFT projects out in the world already, how does one know what to look for in a successful project and how do you differentiate one project’s potential from another?
The NFT space is growing rapidly, trends are ever evolving, and communal emotions and opinions are shifting through the process simultaneously. You’ll often hear people in the NFT space mention being “rugged” or questioning whether or not something is a “rug”— they’re referring to the project’s ability to be nothing more than a scam of some sort. If you’ve found yourself questioning your own ability to identify a solid project, you’ve come to the right place.
Whilst there are a variety of variables that go into making a project successful, they are even more capable of helping you determine whether or not the project is the right fit for you. From being an investor myself, to helping bring a new project into the world, I’ve recently been able to narrow this topic down to four different areas that everyone should investigate when exploring a project for the first time.
Team + Backgrounds
Amongst the NFT world it is not uncommon to see a healthy blend of people both remaining anonymous and exposing their true identities. You’ve probably heard someone use the term “doxxed” at some point. Doxxing is the act of publicly revealing previously private personal information — it has quickly become one of the greatest concerns amongst investors in the NFT space. When considering investing in a project, you’ll most definitely want to take a look at who the team is comprised of.
Just about every project out there will give you some sort of a name and brief background about the individual. Best case scenario, they’ve shared the individual’s name, personal background, legitimate photo, and various links to their personal social media accounts. Obviously, the more information they share about themselves, the less likely they are to have ill intentions. After all, it wouldn’t be very wise for someone to try to take advantage of an entire community that knows exactly how to track them down.
Community + Engagement
Be sure to dive deep into each of the platforms that the project utilises to spread awareness! Most commonly Twitter and Discord, projects use a wide range of apps such as Telegram, Instagram, TikTok, Medium and more. Have you seen a steady increase and flow of communication amongst the project and their followers? Is the energy surrounding their accounts both comfortable and positive? A telltale sign of a project’s potential and level of wholesomeness can be deduced from the audience it attracts. Be sure to spend the time engaging with the project’s community from various angles and reflect on whether you personally feel any desire to be a part of it.
Does the team actively communicate with their community? Are questions being answered in a timely manner? Are people being recognised and rewarded for their contribution to the project’s success? Building a community is a two-way street, and most all successful projects have high levels of effort coming from both the team and their supporters on a regular basis.
Utility + Mission
Although utility isn’t everything, it definitely plays a key role in predicting the level of success a project may see. Essentially, you want to review what being one of their NFT holders means and how belonging to that community could potentially positively impact your life.
What will you gain from investing in the project? If you are comfortable and pleased with the answer to that question, then that’s a good sign. You’ll want to be sure to identify the project’s overall mission. Have they publicly shared their values and goals? Is their mission in line with your values?
Artwork + Roadmap
The artwork and roadmap aspects seem obvious, as they are often viewed as the most significant components. Artwork, clearly, is at the forefront of every project. Some people, if not all, will overlook a project entirely if the art neglects to draw them in. Once a project has caught your eye, you’ll want to review the roadmap as soon as the opportunity to do so presents itself. If there’s not a roadmap of some sort, proceed with caution.
Having a detailed roadmap signifies a level of quality and commitment from the team that we all hope to be on the receiving side of as investors. It is imperative that the founders make their intentions clear and update the community regularly on the project’s progress. After all, buying an NFT and investing in a project is, by all means, the equivalent of a business transaction.
Final Thoughts
There’s no golden rule when it comes to finding a good NFT project, but the above topics are just about as close as it gets. We are still so early in the NFT space that the entire experience is like one big MasterClass. We are all learning as we go and will continue to strengthen our understanding of it all as time moves forward. There are countless resources available online and thousands of people out there looking to help one another.
If you’re interested in an NFT project, don’t hesitate to ask people in the space for their findings while also doing your part to complete your own research. You’ll want to be able to reflect on everything and most importantly, how it all makes you feel. Sometimes, you just have to trust your gut!
If you haven’t hopped into our Discord yet, please head over and take a peek at some of the resources, education and community that live there. We host giveaways and live podcasts regularly, too! All are welcome!
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Please Note: This article is not to be taken as financial advice — we always recommend that you Do Your Own Research.
