Non-Fungible Tokens (NFTs) are taking the world of gaming and metaverse.
With the number of NFT projects being released every day, it’s almost impossible to keep up with all of them. One strategy is to follow smart money and pay attention to projects that have good utility.
According to my research and experience on NFT, I summarized the things to avoid when looking for a good project.
This is a big one, there is no reason why a team should be anonymous when there are millions are the line. Doxxed team regardless of skill set, background adds a layer of trust that these are real people building real projects.
re question in their discord as to why un doxxed if they can’t provide an answer as to why that, stay away. plenty of projects out there.
Many invite contest/discord level-ups mostly fall into bots or hired guns
even with real-life people, this tactic does not encourage real community building.
leveraging celebrity endorsement + paid cameo gigs. you can hire one of the top soccer players in the world to shout you out for $500
Example (Thiago Silva) https://t.co/nvjek3EQNS
re: shady projects often purchase endorsements and generate unrealistic hype. dig into whether the partnerships are official or a paid/photoshopped “partnership”.
hype + FOMO is the equation for unrealistic mint price. real community builders start at something affordable and do not extract all the liquidity out of the market. Just because the project can/may demand such a price, doesn’t mean it should.
A project that allows the original minters to be in the money is what builds loyal raving fans to weather the storm + lulls. projects that mint at ridiculously high prices often have difficulty finding support during lull times.
floor sweeps, banning members for listing below prices, echo chamber, harassment, threats, etc. Piggyback of popular projects.
Confirmation bias = seeking narratives that only supports while denying any red flags. step out of the chamber for a few days. this often allows for the head to clear so better judgment can be made.
Repetitive meta/roadmap that brings little innovation. Failure to address legality concerns over securities and insurance of tokens. lack of ability to create proper tokenomics/p2e for sustainability/longevity.
Meta is easy to copy. tokens can be launched in a matter of hours, and real economies take months/years to create.
for example, Axie Infinity is still balancing their economy despite being a $3B company with years of experience.
there are no blueprints to follow in this new industry, which means there is no right or wrong ways to approach an idea/project. it all comes down to the founding team and how they work, what their values are, and their grand vision.
- 2. transparency
- 3. communicative