What Makes A Great NFT Project?
- NFTOddities
- Oct 7, 2022
- 3 min read
Updated: Jul 29, 2024
NFTs are becoming more and more popular by the minute. There are a lot of people just getting into the community but don't really know which projects to invest in. I think the first thing to ask yourself is why do you want to buy NFTs?
For some people, buying NFTs is about collecting something that no one else owns. An NFT (art) collector perhaps sees the future value of the art but enjoys the fact that they are the exclusive holder of a "rare" piece.
For other people, flipping NFTs for a quick profit is their main purpose. So it's more of a short term investment vs. that of a long term collector. I personally see the value in both. I own several NFTs from the same collection that I don't plan on selling for a really long time, if ever.
But I've also sold NFTs for a small profit in order to reinvest the money into a different NFT collection that I want to hold. I'm not flipping NFTs every day but I'm not adverse to selling them either.
There's no guarantee that an NFT project will make you any money as they are all an investment risk so always do your own research before buying. So with that said, the NFT projects that I want to be involved in (long term) must have the following traits (in no particular order):
The Team. The project creators have to be involved. They need to engage with their investors and be fully doxxed. This means they are completely transparent about who they are, where they're from, and what plans they have to make the project a success (not only for themselves but for their investors). If you join a project's Discord channel and the dev team is never there to answer questions, or get to know their own followers that's a bad sign. To me, a team that's a no show means they just want my money and I'm out.
The Art. I'm a visual person so I have to like how it looks. It doesn't matter if it's 3D art, abstract art, or silly cartoon characters. If I like the overall look, I'm totally hooked.
Use Case. Does the NFT have a use case aside from being a cool NFT? An example would be a character based NFT thats going to be part of an online game (and as the NFT owner, it serves as your own character when you play the game). Another use case perhaps is that a portion of the proceeds goes towards cancer research, or feeding low income children.
Fun Perks. Who doesn't like free stuff? Does the project offer future NFT airdrops for their genesis holders? Many projects offer extra digital content, or physical merchandise for those who initially invest in their project. It's a great way for them to thank you for believing in their vision and following along on their journey. Plus, you will probably make a lot of new friends on social media for having similar interests in a project. To me that's a pretty cool bonus, as well.
Collaborations. Quite a few of my favorite NFT projects collaborate with other dev teams in order to bring awareness to each other's projects. This results in getting more eyes on your investment and also gives you the opportunity to get in early if the collab is a project you're interested in joining as well.
Again, my criteria may be slightly different than someone who is flipping NFTs for a quick profit because I plan to hold the majority of my NFTs for the long term. Regardless, I hope this short list helps you. And as always, be sure to DYOR.
If you'd like to learn more about how to buy, sell, or trade crypto as well as create and sell your own NFTs, check out the Crypto Wealth Academy
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