Unless you crawled out from under a rock or you time-traveled from the past, you have probably heard about NFTs and the Metaverse. They are all the rage now and have taken the decentralized monetary market by storm.
2021 was a year of massive growth for these NTFs, with several of them popping out constantly. NFTs made up $19 billion of the cryptocurrency market in the previous year. This means more people are gunning for NFTs and rushing to invest in them. So, while some NFTs may thrive and boom, others may not.
Time, effort, and consistency will do you a lot of good in the business world, which also applies to NFTs. It does take some time, but if you are patient and approach it carefully, you should reap the good of the land. Aside from the pillars of NFT value, a good approach typically involves measuring the following:
We will take a closer look at some of these factors below.
Choosing the Right NFT
Here are some factors that make an NFT project successful:
A "white paper" is a document that outlines the goals and strategies of the NFT project you are looking into. If the goals and strategy of that NFT are unclear or seem far-fetched and unreal, it might be a good idea to take a left at that NFT.
Investing in NFTs is investing in the person behind the token. If the human or creator is unreliable, sneaky, and transparent about the project, take a step back to reevaluate. Transparency is critical with NFTs because it is the bond that joins the creator and future investors, so if the project doesn't seem like they are in it for life but looking for a quick buck, take a verse from the NFT Bible and flee from all appearances of scams.
Like diamonds and other precious stones, the rarer they are, the more valuable they are. Creating scarcity and rarity means that people who own these NFTs are part of a particular group, the VIPs, if you may. Not only are these rare NFTs valuable, but they make the owners want to show them off.
This is 2022, and if it is online and doesn’t have a social media presence, that’s kind of suspicious. Without visibility, you have no chance of finding potential owners for these NFTs, so a strong media presence is a must. Not just the number of followers, but the tone they present. Are they actual followers or people who are interested in the project? Do the founders frequently interact with the followers?
NFTs are community-driven. You cannot survive as a creator without solid community backing. A potentially successful NFT will have a lot of people following and supporting them. The more engagement, the more likely it is to be successful.
Owning an NFT is more than owning a piece of digital art; it means being a part of something bigger – a community. Therefore, you must understand how this community works and join the right one. It is a community that births creativity. We have outlined several factors that make a successful NFT. Be sure to consider them carefully before choosing.