After I Bought 500 Fake NFTs, I Finally Understood…
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This is a knock-off summer, a summer dominated by the counterfeit NFTs project.
I‘m also getting involved.
From the beginning, I made my first attempt at some freemint projects. My attitude also changed from detesting to following.
And, uh, well, yeah, I did make some money out of it.
But at the same time, I lose more.
After I bought 500 knockoff NFTs, I finally understood…
What are Freemint NFTs?
Freemint is mostly made of low-cost, even counterfeit NFTs. Most of these projects will not be active for more than 3 days.
One of my friends joked about such situations as “Getting married today and tomorrow passer-by.”
For example, “Poor Dudes”, “Cheebs” and “Cloudy Me” all had a hot trading peak within a few hours after their sales, and then no one paid attention to them until they went to zero.
A few freemint projects have still achieved phased success, and such projects have also been ridiculed as “Golden dog projects”, such as “God Hates NFTees”, “Mimic Shhans” and “The Saudis”.
After their transaction activity stabilized, floor prices remained stable, and some even reached the peak of 1.5 ETH. The success of such projects has once again intensified the FOMO of buyers and the creative enthusiasm of counterfeiters.
Unlike blue chip projects, the success of the fake project depends on stimulating the FOMO mood of the market. Therefore, there will be a 3–6 week operation before entering public sales. At this stage, the project party will buy followers, pursue the KOL, and giveaway cooperation, and even buy bots to make its servers look very “popular”.
However, this kind of heat is actually “false prosperity”.
When the freemint project enters the public sale, the project party will transfer 10% — 30% (or even more) of NFT to the wallet address at its disposal, and then quickly inject funds into the secondary market to raise the floor price, which makes the transaction volume of NFT soar, creating the effect that a large number of real users buying into the project.
At this point, users who have not entered the site will start FOMO. The floor price of NFT has also been raised several times.
And then, the project party will start to stop injecting funds at high prices and sell its inventory, so as to realize a rapid cash return.
Case Sharing: Skeletal Cat
I entered the whitelist of this project through premint.
Quick aside: I usually use multiple wallets to participate in premint activities, which is also a way for me to distinguish between good and bad projects. If multiple wallets have been selected, I have to think about whether there are too few participants in this project.
An hour before mint, I began to observe their official Twitter engagement. Not bad, they showed relatively active.
They would post new tweets and publish further information on mint, and contracts in every ten minutes.
There is also a simple way to judge whether a project is hot or not. We can pay attention to the status of gas. If gas rises rapidly after the start of mint, it proves that there must be hot projects during this period. Combined with the sale of our own mint projects, we may know whether our own projects have attracted such kind of attention.
In addition, at the beginning of mint, we should first pay attention to the number of mints and the secondary market. It’s not too late to decide whether to mint after a period of time watching the secondary market.
After a mint, you can judge whether the project party is sweeping the floor or whether a large number of players FOMO according to the liquidity of the project. The liquidity is extremely healthy if more than 6 items are sold per minute.
In the case of high liquidity, I will continue to track the status of project sales. When the flow declines, it proves that this is the best time to flip.
The secret of a successful flip is not to be greedy.
Final Thoughts
The current market habits come from the impact of bear market consumer sentiment. Masters of rug pulls will always draw more and more gorgeous blueprints for consumers to let you in.
When consumers calm down from false prosperity, market behavior will also change. In the next two months, the bear market may not end, but there must be a project that makes the project parties and users aware of the new value of NFT.
Reliable endorsement, partners, reasonable minting price, and practical future planning, so as to give users reason to hold for a long time. None of this should be missing.
Thanks for reading the article😊😊😊
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About Nswap: Nswap is building a decentralized, multi-chain information aggregation platform (Launchpad) and open market (Marketplace) for NFTs. We hope that everyone has the opportunity to experience, access, and own NFTs. With Nswap, you can access NFT collections for sale on our primary Launchpad and trade them freely on our secondary Marketplace.
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