Dreaming of profit? Learn to choose the right collections. So, in August 2021, Versluis acquired Degenerate Ape Academy. The image was part of a popular collection of monkeys created on the Solana blockchain. Buyers snapped up all 10,000 NFTs in just 8 minutes. And today, the cheapest representative of this collection costs 87 SOL - almost $10,000.
How to choose projects that will definitely become bestsellers in the future? What factors should be taken into account?
1.Demand for an NFT creator
Be sure to study the previous experience of the author of the project. A reliable sign of progress will be the presence of other worthy jobs in the past. If a creator enters the market for the first time, and his work seems promising to you, this does not mean anything. Be ready for the fact that the result of the investment may not live up to expectations.
2. Team reputation
This is another condition for choosing a "monetary" collection that can bring tangible profits in the future. If there are scammers in the team who have appeared in other failed projects, it is worth considering.
For example, not so long ago, Ethan Vinh Nguyen and Andre Marcus Quiddaena Lyakunu were accused of fraud. With their filing, users lost over a million dollars on the sale of the Frosties NFT collection. The buyers became the owners of the pictures without any guarantees or remuneration.
To avoid such an ending, it is necessary to carefully study the biography of all team members. To do this, you should find their accounts in social networks, read the comments. It is important that personal information be independently verified. You can also search Google for reviews by the name of each founder.
3. Community activity
It is very important that the community of the project you have chosen be alive, active and united. In other words, managers are obliged to interact with potential buyers, to demonstrate to them the attractiveness of tokens. Only in this way, even at the stage of creating a collection, a liquid market is formed: users realize the potential of a particular NFT and are ready to buy it.
4. The value of the first releases
Each collection may have several editions, but the first one is always the most valuable. Accordingly, the cost is usually quite high. Before buying your chosen token, you should evaluate its prospects. To do this, you can use various tools, such as the Nansen resource or NFT Scoring.
If the project offers something special and unique, then it is definitely worth paying attention to. It could be some kind of innovation or access to insider information.
You should not rush to invest in every publicized project. Even if it seems to be successful, it has a good website, a solid roadmap and an attractive picture. Be selective. Otherwise, the risk of investing more money than originally planned will increase. It is sure that the NFT world is quite risky, and you can lose a lot of money in search of a successful collection. This nuance must be taken into account in order not to make purchases with the last money.
Be sure to carefully study the conditions for entering the market. If a potential investor has Ethereum or Solana bought at a low price at the start of sales, then acquiring NFTs will cost much less. After all, it is on the basis of these two blockchains that work is underway to create non-fungible tokens.
Today, entering the innovative market requires serious costs. For example, Ethereum is trading above $3,000 on April 21. This is why all investors, especially those with a modest budget, should evaluate all potential risks before making any decision.