In this guide, we explain exactly what makes a good NFT project and what indicators you should look for before you invest in a project. Is there any additional utility built into your NFTs? Do not underestimate the significance of this question. By limiting the outflow from waiting room to transaction page, NFT launches can spread transactions out over a larger period and avoid gas wars among customers. Global, 24/7 markets for anything you can think of. After all, why are you doing what you want to do? That being said, a roadmap will give you an indication of what the end goal of the project is and that will help you decide whether the project is for you or not. gamestop nft Every successful NFT project adopts different but similar brand-building strategies. This is because the NFT world is very dynamic. But also make sure that you continue to innovate the story from time to time as and when it is required. The current Mutant Ape floor price is almost 8 ETH (approximately $30,000). RELATED: How Major Retailers Are Using NFTs To Drive Sales & Boost Brand Loyalty. Lack of price appreciation is one thing, lack of volume is another. Establishing communities for NFT projects really comes down to getting buy-in from your audience. These include but are not limited to too many mints, an excessive mint price, lack of liquidity, an anonymous founder team and lots of fake influencer accounts that are promoting the projects mint. If theres little demand, you may be forced to sell at a discount, even if the market price is already low. Its payday. Even for NFT collections that strive for fairness and diversity by selling at a low initial cost, customers end up competing over NFTs through gas bidding. NFT projects with profile pic collections of 10,000 items are at the forefront of a totally new asset class. Some marketplaces only sell Ethereum-based NFTs, while others have their own blockchains, sidechains, and currencies. There are roughly 2 different categories of utility that have emerged. Think of the blockchain as a decentralized database that is not owned by anyone. Focusing on your first 1,000 fans can carry you very far in reaching a wider audience. Some of them promise you NFT whitelist spots on a big upcoming project, though these can also be legitimate. So if someone asks what makes a good NFT project, the roadmap shouldnt be your first response. But selling out isnt possible without first generating an audience that believes in the project. But for every highly successful NFT collection, there are dozens that fail to capture anyones attention. It might seem counterintuitive that the art is non-essential but its true. So youve decided you want to start investing in NFTs? Being part of a community with exclusive access privileges also helps build brand loyalty because people want to remain part of an exclusive club. Do I qualify? With this, upcoming NFT projects can donate 555 of their NFTs to VeeFriends holders. Your NFT story has to be compelling. A key element of making the NFT space fairer is proof of personhood (PoP). And youll also be able to dismiss many of the claims that say that NFT is a pyramid scheme. If youd like to find out more about the best NFT games right now, we have an excellent article on the subject. This doesnt mean the team isnt trying, but it might mean they simply lack the ability to execute. Make sure they fall in love with your NFT, story or project. Is It Better To Lease Or Buy A Car In Summer 2022? NFT Tax Guide: In What Ways are NFTs Taxed? If a project is being promoted by these characters, stay away! NFT Investing: What Makes a Good NFT Project? All these crashes had one thing in commonthe websites werent prepared for thetraffic surgesthe NFT drops would lead to. Visitors who enter virtual waiting rooms for NFT drops can be authenticated as real individual customers. But if theres little trading volume, then its also an increased risk for investors. During high-demand product releases, it pays to be prepared. While this benefits the miners, customers end up spending more than expected, and many are quickly outbid by whales and bots. This also includes celebrities who have picked up their own NFTs of the project. In the end, it all depends on your personal risk appetite, but make sure you take note of these. With NFTs approaching the mainstream, its getting harder for new NFT collections to stand out from the crowd. Many successful NFT projects thrive on viral marketing for a few days and then die out because enough people just could not relate with them on a personal or community level. Gary Vaynerchuk outlined all the features of his highly successful VeeFriends NFTs ahead of time. Paradigms chart below shows the Ethereum gas fees in the month of September 2021. Another way NFT projects go about brand building is by offering members an interactive and fun experience. Next, you can improve the technology itself to have NFTs more closely integrated with "opening the doors" meaning nothing else is needed but the NFT itself to physically grant the access. In this article we outline the 9 necessary steps for a successful NFT drop from start to finish. Thats why most project founders would kill to know how to get verified on OpenSea. And alongside these big players, NFT collections by artists, developers, and creators of all kinds are thriving and seeing major success. Stay Updated. Some of these red flags will be obvious to you and are easy to identify, while others are trickier. KYC compliance is important to consider, especially for large NFT projects because it: RELATED: Everything You Need to Know About Preventing Online Shopping Bots. Ambition and success go a long way towards achieving what you want. Very often these projects will end in a so-called rug pull, where the founding team disappears with all the money. Its easier for anonymous teams to abandon a project if their personal reputations are not on the line. When fans are excited and ready. Answer the below questions on a piece of paper or type it out on a word document. And these tokens are required in order to pay for things within the ecosystem. Why will people be trying to get their hands on them for years to come? As an investor, you want to be sure that you can actually cash out of your position at a reasonable market price. For example, Nike patented CryptoKicks, and other consumer brands such as Coca-Cola, Taco Belland ASICS have used NFTs as part of their marketing strategies. And a pitch deck is never a guarantee that something will actually happen, they are merely a promise at a point in time that a founding team plans to do something. We know the launch wasn't exactly what we wanted for our community to experience, but with the help of Queue-it we were able to effectively work on resolving issues and making things right for everyone that stuck with us. pups pedigree The drop day is the culmination of all your hard work. Throughout this article weve discussed the importance of generating hype, but there are also dangers to being unprepared for too much hype. Not only does it make the NFTs more attractive to others, but it also makes the owners want to flaunt them. Its used to prevent illegal activity like money laundering, funding of terrorism, and tax evasion. So, once you have your NFTs ready for release, its time to get people excited about them. Related: Customer Loyalty in Ecommerce: The Surprising Benefits of Online Fairness. Find ways to make each person feel special, and like they're part of the story. This approach creates a large and diverse holder community who believe in your project, which is key to long-term success. We help you navigate this fascinating new world of non-fungible tokens and show you how you can integrate tokenization into your own business. Considering that some of the most successful NFT projects of all time started with a free mint, asking for 0.5 ETH or more to mint new tokens seems a bit greedy. Inc 500 Entrepreneur. How much should be the maximum mint amount? You need to understand the following steps in detail to build a successful NFT project. The Apes exist in a future where early crypto investors, wealthy beyond belief, gather at a yacht club with like-minded Apes. Major available blockchain options include: Each blockchain has different benefits, proponents, and selling points. They use strategies such as community engagement, opinion polls, extra benefits and more. As a result, make an NFT project that has an original story. The Ethereum community has been at the forefront of NFTs, DeFi, and DAOs. Is it utility? But, first lets understand some basics about the metaverse and NFTs in general. For instance, CryptoPunks tokens, pixelated humanoid characters that were given away for free back in 2017, were worth a minimum of about $400,000 when I wrote this. Utility is becoming an increasingly important aspect of many projects roadmaps. At the risk of sounding like a broken record, we do need to point out that all of the content in this article is purely for informational purposes. As for the other features, make sure to specify them right at the start. Otherwise, your attempt to make money by investing in NFTs will be quickly shattered. If you research thoroughly and conduct proper due diligence, then chances are you will succeed in investing in a number of very promising projects with a bright future. A big community of followers is not only an effective tool in marketing a project, it can also become a core value proposition. Choosing the best NFT project to invest in is not always easy. The simplest suggestions are the most difficult to pull off. Implementing such a model makes it difficult or impossible for crypto whales (people or entities with huge amounts of cryptocurrency) using bots to snatch up a large portion of the NFTs. These vibrant communities help in increasing the value of NFTs. Build a world class website. NFTs aren't just valuable economically. If you ask Twitter, what makes a good NFT project, the vast majority will probably refer to the community. With increasing NFT prices many late investors obviously want to know how the team plans to bring additional value to its holders which will help increase the tokens price. After reading this article in full, youll know exactly what makes a good NFT project. BAYC has many different "traits" (visual properties) for its 10,000 NFTs. You may opt-out by. What skills do the founders bring to the table and are they the necessary skills to pull off a successful NFT project? Its about the community behind it and how engaged it is. However, the vast majority of people are primarily looking to make a profit. Whether its images, videos, avatars, or merchandise, theres one core question you need to answer: why should people buy your NFTs? A project with a very high ratio of unique holders will be inherently more stable in price because if everyone only has 1 token, they are less likely to sell it. We're in for a lot of innovation in the coming years, and you can capitalize by being more creative than the next person. Similarly, NFT projects are already getting mainstream coverage. Top 5 MetaMask Alternatives That Really Matter, Dune Analytics API: Everything You Need to Know, The 6 Best Dune Analytics STEPN Dashboards, Solved: How to Transfer Solana to STEPN in 5 Easy Steps, STEPN Sneaker Rental: Everything You Need to Know, Solved: How to List NFT on OpenSea in 3 Easy Steps, 10 NFT Analytics Tools to Boost Your Profits. Most of the mechanisms are designed to incentive holding tokens for as long as possible and not list them on marketplaces. On the latter point, we were happy to announce that all Niftys users who queued for a Matrix Avatar will be receiving a free glitch in the Matrix NFT.Nifty's, Virtual waiting room for Niftys The Matrix NFT drop. But is that really what makes a good NFT project? Since new mints indirectly dilute the value of the original collection, it simply doesnt add true value either. As businesses navigate the exciting space of NFTs, many quickly realize the interest in NFTs exceeds the capacity of their websites. VeeFriends, for example, has gone beyond its initial promise to buyers by creating a Pre-Launch Program (PLP). Smart contracts enable you to get a cut on all future secondary sales as royalty payments. So spend the time leading up to the release getting as much visibility for your NFTs as possible. However, you dont need to make the same mistakes that we did and therefore some of our advice will likely be useful to you. They usually promise people unrealistic amounts of free money or crypto for simply following them and liking their tweets. NFT Investing: What Makes a Good NFT Project? Likewise, among marketplaces, you can pick and choose where you would like people to buy your NFT collection. BAYC created a world that people could only join by buying their NFTs. This is also where the total number of unique token holders comes into play. Establish social media channels (Twitter and Discord are the main areas NFT enthusiasts spend their time, but its also worth considering Instagram, Reddit, and Telegram), Reach out to NFT influencers and consider donating NFTs to them for support, Create promotional videos, photos, and written content, Create a presale sign-up form and mailing list, All major partners and third-party services are informed about the drop, Staff know their responsibilities and have clear channels of communication, Customer service ready and people are monitoring social media channels, Technical support is monitoring for issues and have plans in place for quick solutions. In this article, we draw on these insights and showcase success stories from some of the biggest NFT projects to outline the key preparations you need to make and the tough questions you need to answer to pull off a successful NFT launch.Here are the 9 steps weve seen successful NFT projects nail, and that you should consider prior to your NFT drop: RELATED: NFTs Explained: Everything Your Business Needs to Know. By setting purchase limits and authenticating each customer, all users can participate in a fairer drop, and secondary value can be realized for buyers on the resale market. And once you have that list of prospects, you can eliminate those with obvious red flags. Just like you are reading this article right now, trying to figure out what makes a good NFT project, most people tend to gravitate towards the things that have been mentioned in the media. Good trade volume also means that the projects treasury is filling up with funds to spend on growing the project. Opinions expressed are those of the author. NFTs have become the rage on the internet, offering a novel opportunity for creators, artists and developers. Holders of an NFT of a project are financially invested and their incentives are aligned with those of the team. The NFT giveaway, for example, is popular because it works. This is a huge red flag because its a typical scam used to manipulate gullible people on the internet. Thats why so many people are asking what makes a good NFT? Social proof is a powerful thing in social media. They fade away due to technical difficulties, glitches, or a lack of focus on fundamentals. Is It Possible to Get Copyright Protection For an NFT? All Rights Reserved, This is a BETA experience. Unless you've been living under a rock, such as the EtherRock that recently sold for $1.3 million, you've probably heard about non-fungible tokens(NFTs). Non-fungible tokens or NFTs took the world by storm in 2021. It had a professional website, a fun and lighthearted brand voice, and was committed from the outset to creating benefits for an exclusive community. As a result, you have options. Some of the key skills that a project needs include social media marketing, brand management, community management/PR, blockchain development and ideally an artist with a signature style. Youtube Today, the most popular NFTs are worth more than a small house in some parts of America. PR is a hugely underestimated marketing tool. The vast majority of startups fail and the same holds true for NFT projects. Now, to be quite frank, you should always take these roadmaps with a grain of salt. When everything has gone perfectly in your checklist until this point, the drop day can make or break your project. The level of interest in NFTs is growing fast. So what makes a good NFT project? We have an excellent article on NFT roadmap examples that we recommend you have a look at too. Price history also comes into play when a project has already been around for a while. A lot of the early NFT projects primarily focused on the artistic aspect. But you can make it easy by knowing youre why. As a consultant with my own agency, I see a lot of projects early on. Home > NFTs > Learn > NFT Investing: What Makes a Good NFT Project? Was there a single huge pump at the time of mint and then it just fizzled out over time? If you're getting involved in creating and marketing NFTs, the thing to keep in mind is deep involvement from your audience. As the name suggests, PoP means each participant is required to prove theyre a real person. You need to do the same for your project. We know the launch wasn't exactly what we wanted for our community to experience, but with the help of Queue-it we were able to effectively work on resolving issues and making things right for everyone that stuck with us. That might sound crazy but the cheapest Genesis Kong also currently costs 80 ETH ($250k). While most NFTs are minted on Ethereum and sold on OpenSea, there are many larger projects which benefit from using alternative blockchains and even creating their own marketplaces. If youre following one of the many NFT newsletters, youll have noticed that new projects are being launched nearly every day. There are other blockchains where you can launch your project on. Bored Ape Yacht Club, currently the most successful project to have ever existed, had all its artwork done by a freelancer for a one-time fee. A bad NFT project will usually raise multiple red flags.