This post was compiled by: Aesthetic.a#4615
How to Choose an NFT Project to Invest In
We want you to be safe and choose wisely where to put your money so please, read carefully
DO I LIKE THE ART?
The first thing you see in an NFT project is the art, and despite the fact that NFTs are not just art, this is a huge part of the appeal of it.
Ask yourself these questions:
– Do I like the art? and why do I like it?
– Is the project unique or is another derivative/copy? ( DYOR! Use first google image search on multiple pieces, then check Twitter and socials, discord, etc)
It sounds basic maybe, but works most of the time: many people don’t use all of their brain in business, they think only about the business part of it, but what drives consumers to buy a product are emotions, the connection they make with the brand.
IS IT ORIGINAL?
Once you look at the NFT market, you will notice that there is no real structure in place to ensure that copyrights are not infringed or to set a standard that eliminates a copy-and-paste-anchored economy, other than the effor we can put in it as a team.
Since there are no industry standards, it is no surprise that project owners and teams try to capitalize on the success of major collections(for example Monkeys, Punks, Bears, etc)
– If you are investing for the sake of the art, go for it: you like it, you own it, you support the artists behind it.
– If you are trying to make a profit in the long term, think before investing in a derivative project and we cannot reiterate this enough, DO YOUR OWN RESEARCH!
SOCIAL MEDIAS
For obvious reasons, social media is a key tool for NFT projects, whether we like it or not.
It’s impossible to overestimate the value of social media interaction when it comes to building an engaged community around a platform or a product.
It’s not just about the number of followers in this case.
Instead, a greater emphasis should be placed on the quality of engagement generated by the project on social media networks.
This is generally a good indicator of a successful project.
ARE THE TEAM DOXXED/TRUSTWORTHY?
When it comes to teams, reputation and experience are key aspects to consider, especially in an industry where developers and artists sometimes choose anonymity.
It’s possible that you’ll have to evaluate whether projects led by an unknown team are worth taking a chance on.
Keep in mind when making this decision that projects that aren’t doxxed (i.e., haven’t made the team’s details public) are more difficult to evaluate objectively.
Because if the identity of the team members are kept hidden, you can’t make an appraisal based on the team’s experience and past successes/failures.
DOES THE PROJECT HAVE A ROADMAP/WHITEPAPER?
If the team refuses to produce a whitepaper or roadmap, it is impossible to comprehend the complexities and technologies involved in the creation or development of an NFT project.
If you’re going to invest your hard-earned money in a project, at the very least you should be able to assess the team’s seriousness and the roadmap’s long-term viability.
DO THE PIECES HAVE RARITY?
Traits and rarity criteria are critical components in making NFT successful on LaunchMyNFT and in general if we talk about generative collections.
If NFTs hadn’t established its rarity in the web3 space, they wouldn’t have gotten as much attention.
The appeal of NFT as a technique resides in the ability to verify that digital assets are one-of-a-kind or have distinct characteristics.
This is why, before purchasing NFTs, it is critical to check their rarity.
It’s important to remember that the goal is to buy uncommon NFTs at a low price rather than paying a high price that you won’t be able to recoup.
