However, not all of them turn out to be scams, but valuable investments on which profits can be made. That is provided you know how to choose them well.
Learn about the creators of the NFT project
Indeed, as a trading algorithm, knowing the origin of the project is an essential element in judging it.
The track record of the creator and his team is an excellent indicator of reliability of the project.
In the case of a creator who accumulates failures, there is a good chance that the project is not sustainable and is a scam or just an unambitious project. Therefore, yours NFT it probably won’t be worth it and your investment could be wasted.
On the other hand, if its creator already has some success and is strong in good reputation then the project NFT also has a good chance of being successful.
Similarly, within the framework of a team, it is interesting to know complementarity of individuals who make it up. If this team consists of only marketing cracks or only developers, then there is an imbalance and the project looks shaky.
But if the talents are balanced then the project will have more reliability and more likely to succeed.
Study the NFT Project white paper
Like a classic crypto project, White paper or white paper forms a base.
This document, accessible to all, refers to the objective of the project, its structure, its economic policy, its media strategy and its roadmap. In other words, it is about its full matrix.
A project NFT not publishing a white paper is worthless. Otherwise, a lite-paper is desirable.
By reading the white paper, users should have a clear vision of the project and the values it wants to convey.
Take the collection example NFT Mutant punksone of the most popular CryptoPunk spinoffs released a full white paper AND a guide accurate information that allows investors to know the progress of the development.
What is the use of NFT collection?
of NFT it can develop for various reasons. Thus, they have multiple uses depending on the project and its objectives.
Still others have a purely artistic role and act as the canvas of a great painter. Owning them is like owning one work of art to display.
The use cases are many. So it all depends on what you want to use it for.
However, it is essential to fully understand the role of NFT before the investment. Is it a short term trade or rather a long term investment? Is this an art purchase or a useful in-game purchase?
These questions are essential to determine before purchasing one NFT. In effect, judge a collection good or bad it depends on one’s expectations and the utility attached to it.
Evaluate the marketing strategy of an NFT project
Like big brands, collections NFT that work is often driven by an aggressive marketing strategy.
Using social networks and popular influencers, these projects quickly find followers. They create one hypea craze for their collections.
This creates a strong community that respect the values of the project and the team.
In addition to the pleasure of sense of belongingthey create or application strong AND reduce supply at the same time. Members satisfied with the group they belong to do not want to sell their place and keep their place NFT for a long period.
Thus, the marketing strategy in the country should be at the origin of purchasing power present in the collection.
This purchasing power has two advantages:
- Sales are repeated and the price tends to increase;
- It makes acquisition easy NFT simple.
How innovative is the NFT collection?
Technological innovation of a collection NFT corresponds to its technical development.
These two blockchains are more reliable when it comes to NFT. Theirs technical possibilities are promises of seriousness and interesting potential.
However, the innovative objective of a collection is also due to its pioneering aspect.
Sorare, for example, was one of the first games P2E to settle on this niche. Combination of technologies blockchain, NFT and video games, the platform based on Ethereum experienced a instant success and continues to seduce.
Step N is another example of a pioneer who has reinvented the concept of sports application transposed to technology blockchain and to NFT. Against this new concept based as for him to him Solanaits popularity has grown extremely fast.
This enthusiasm has particularly benefited froma reward system useful for users.
However, they share some points in common, in particular the proliferation of scams that surround them. To protect yourself from these scams, it is important that do your research.
of NFT represent only a small part of the possibilities offered by the technologies blockchain. of training Crypto Rider allows you to understand these different markets and analyze the right opportunities!