Before investing in NFTs , you should do a thorough research to see what kind of people are at the head of the company, how the business is structured, what benefits consumers receive, etc. Also in this article, you will learn how to recognize weak NFT projects, even if at first glance everything is fine, save time on unnecessary research, avoid waste of money and scammers
Research of new projects
Suppose you find an NFT project that has only a few thousand people on twitter, even fewer on discord, and none of the people you follow are subscribed to this project. Could it be that you were the first in the industry to find a diamond lying on the ground ? (spoiler: practically not, but sometimes such guys appear)
- Set up your twitter feed.
Your news feed is already 50% of your NFT success. Getting high-quality and up-to-date information is critical in our industry, learn more about who you need to follow in order to receive up-to-date insights
It is important to consider 5 key success factors for an NFT project.
- Founding Team
- In other words, a project development plan. What does the team plan to do after the release of their NFTs? Do they have plans?
- If something sounds too good to be true, it probably is.
- What will be the benefit to those who, instead of selling their NFTs and earning on them, will keep them and remain loyal to the project?
- How realistic are the founders' plans? Do they really have the experience and the means to achieve their goals?
Do not look at individual pictures - look at the entire collection as a whole. What is the collection? Don't you have the feeling that the founders drew these pictures "on the knee"? Or do they show that the team has thoroughly invested in visuals and did not save on artists?
Under what conditions does the artist work? Was he just paid for 10,000 generative images or is he a member of the founding team and he himself is interested in the success of the project? Does the artist have any reason to want to work nights on this project?
Are the pictures different from others that are on the market? Or is it another CryptoPunks and Bored Ape Yacht Club?
By the way, a good (famous) artist does not mean that his work in this particular collection will also be good. Especially if he was just paid to create pictures.
2.3 Founding Team
- Who is behind the NFT project? Is it possible to find social founding networks or do they prefer not to shine?
- What is the experience of each team member? Do they have profiles in linked in? Who are their friends there?
- What are the team's successful cases?
The community is the most important key to the success of any NFT project. It is the community that determines the Floor Price (minimum price) for the project.
- What is the community on twitter and discord like? What are they talking about? Do they communicate at all or just write the same type of messages?
- How often do moderators and the founding team get in touch with their community? Are they part of the community or are they at a distance? Do they sit in voice chats with attendees or only host events on certain dates?
- Are there many followers on twitter?
- How hard is it to get a WhiteList (WL) on their discord?
This is a double-edged sword. On the one hand, innovation is important in NFTs. On the other hand, most projects are trying to introduce completely useless changes that do not bring any benefit or uniqueness to NFT owners.
How is the project different from others like it? Are these changes really necessary or could the project do without them?
Do these NFTs provide any benefit to the owners? Passive income through staking, access to private discord channels with whales, AirDrops, etc.?
Research of already released projects
Alpha groups are the most reliable source of information. However, one should not forget that the members of alpha groups are also people and they are also mistaken. Getting quality information is just the first step. You need to verify it.
Let's say you saw someone's Alpha-Call. (approx. term in the NFT industry. Means "call to action") Before you blindly follow the advice and risk your hard-earned money, you should make sure that the information is really reliable. To the extent possible, of course. Nobody knows the future.
Step 1: Who is the Alpha Call coming from?
It is important to look not at the number of subscribers and reviews, but at real cases. (The NFT was worth this much, then I called and a couple of days later these NFTs rose in price to this much. The net profit was this much) Just like that.
Step 2: What is the reason for Alpha Call?
Why should a pump happen? Are there any prerequisites for this? Like AirDrop, someone's tweet, or a celebrity purchase?
Step 3: How will the pump work?
Will the pump be artificial or natural? If natural, then is it really so?
Step 4: When will the pump happen?
Will it be random, or is it preceded by some event or announcement?
To view the analytics of the NFT project, I advise you to use BlokProbe. It's free.
Properly conducted research can not only protect you from scammers, but also make good money.