NFT Survival Guide

The rapidly changing and growing pace of digital artwork has created a breeding ground for scammers and other anonymous people that are out for your money. It is not only sad for the people that get scammed but also for new projects trying to build something. Therefore, a lot of new projects fail to succeed due to this stigma in the space. But, a small group is booming and making some people very wealthy. 

Five Things To Look Out For With NFTs

 

1. Road Map Or White Paper

A good indication to check the legitimacy of a newly found project is the road map or white paper. It is already a great start if they have both. It is the same as with regular businesses. It needs a clear vision and mission. What makes them special from others? How is it built up and how much effort was given to putting the pieces together? Also, is what they want to achieve feasible? 

2. Founders

The founders or creators of any project have a big role in future success. Many owners stay behind a shield of anonymity, and when problems arise, like a mixup with the transfer of metadata and ownership, they run away. It’s important to have the creators of a project show some level of transparency for what the idea of the project actually is and how they are going to achieve it. Some questions to ask yourself are:

• What kind of people are they, and how do they position themselves?

• What is their background, and how transparent are they?

• What drives them, and what are their goals? Are they artists and/or are they creating something unique?

• Do you want to be associated with the project, and will you learn something from it?

• Are they in it for the money, or is there a clear passion visible? In other words, is it fun, or are people just 100% concerned with the price?

3. Social Presence

NFT companies are mainly online thus far. This means that their social media presence is of utmost importance — not just the number of followers that back the project, but also their tone of voice and activity. Where are they present? Do they just have Twitter, Discord and/or Telegram? Does their Discord have a professional structure with developers innovating within, or is it a simple version with a few channels?

4. Community

Community-driven projects are in general the most successful. Within a community, a culture has been created, and culture creates a following. If the project has a clear community that speaks with passion about the project, it is a good indicator that the project has a good potential for succeeding. Culture and shared values are key for NFT projects.

5. Reach

At last, the reach of a project is important. For example, if a project is only known within a small group of people, this is not a good sign. But, if there are a lot of people following the project, this typically means that they are willing to put their image on the line that they built for several years. This is a good indicator of a legit project.

NFTs Are Here To Stay

Many new NFT projects have developed as more companies throw their hats in the ring. As the trend progresses, I wouldn’t be surprised if we see a world where tickets are purchased through NFTs functioning as vouchers for entrance and even rare possessions are verified as authentic through an NFT. The sky is the limit, and whatever you imagine will probably have the potential of becoming a reality in the coming years. The markets will go up and down, but the functionality and technology will continue to evolve.