NFTs or non-fungible tokens are among the most successful and fastest-growing projects on the blockchain today. Sadly, many NFT projects are solely driven by hype with no real value given to their community. So it’s no easy task to spot a project that could become the next big thing.
Some NFT projects take advantage of the “scarcity” that developers have created for their projects. Some would even go as far as to rug pull or scam people. This is why finding a legit project to support is easier said than done.
What Makes an NFT Project Good?
You can do extra measures to make sure and have concrete proof that the NFT project you’re eyeing is something you can or cannot trust. But before you dive deep into it, just keep in mind that these are not guaranteed, but they will surely give you a good shot of landing that jackpot.
Are the founders creditable?
One thing that you should check is the founding members. You’ll need to research every one of them to ensure that they’re legitimate and are less likely to pull any monkey business.
One example is this new NFT project called Ethlizards. And just so you know, we’re not sponsored or associated with them in any way. But I’ve bought 3 of their NFTs because Kieran (co-founder of Illuvium) is their advisor. So at least we know that it’s somewhat legit.
Does it have a real and active community?
A good NFT project would typically have an active community that supports it. And you can start your hunt by being active on social media platforms like Twitter, Facebook, and YouTube. They would even have dedicated Discord channels and subreddits.
However, even supporting communities can be faked. For instance, NFT project scams would have bots and social media dummy accounts supporting and posting stuff about their project to make it seem legit. So always be wary of that and try to validate their accounts.
Does it pique your interest?
Supporting a project that holds your interest would be a solid foundation for your investment. Because no matter what happens, whether its price goes up or down, you can still hold on to it and be proud of what you’ve purchased.
What Are The Risks?
The popularity of NFTs has attracted hundreds of thousands of investors, which is great for its economy. Unfortunately, it also attracted scammers and mischievous organizations that want to take advantage of it. There are numerous fake crypto wallets and NFT marketplaces that exist today. So being vigilant and thorough research should be a top priority as well.
Moreover, NFTs will only remain valuable if it serves their purpose, and the competition on the blockchain is more fierce than ever. This is one of the many risks of investing in them because a new project could appear and perform seemingly better than the one you’ve invested in, causing it to crash.
The hype around NFTs wouldn’t be good in the long run as well because we can expect that more organizations and famous individuals will join this NFT craze which could result in a market crash. The demand just wouldn’t be able to keep up with the supply. But chosen few NFTs that hold real importance and utility will stay relevant and retain their value.
To End
NFTs are wild, and their volatility exceeds that of crypto. So safety precautions and due diligence will be required if you plan to swim with the sharks. We hope that your time with us is fruitful, and we expect to see more of you in the future!
