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How to identify a potential NFT project, avoid scam projects in a “forest” of projects. Let’s listen to the experiences and sharing from the AntiAntiNFTs Club (AANC) team.
Factors determining the success of an NFT . project
Before we get into the evaluation of an NFT project, we need to understand what constitutes the value of an NFT project.
Theoretically, in order for an asset class to be valuable, it must meet three criteria as follows:
– Limited quantity available to create rarity
– Has high durability in order not to be damaged or lost
– There are many people who acceptie a large community of users
In essence, all NFTs already possess 2 criteria: limited and durable (limited because total supply is limited, NFT is stored on Blockchain, so it can be considered forever). So, the difference between a successful NFT project and a failed NFT project is the **COMMMUNITY factor.**
The community here is the people who participate, invest and support the project. Community not only reflects the support the project receives, but also the size of the cash flow that is likely to flow into the project.
When considering the community, AANC will consider both quantitative and qualitative factors.
In terms of numbers, to verify this is quite simple. We will check the followers and members on the project’s channels like Twitter, Telegram, Discord, etc. Most of the NFT projects will have Twitter (announcement and branding channel) and Discord (community activities).
According to personal experience, AANC will divide into 3 types of communities as follows:
– 0-10,000 followers: small community
– 10,000 – 50,000 followers: mid-range community
– Over 50,000 followers: big community
However, if it is not enough just to evaluate the quantity, we will need to consider the quality of that community because there are quite a few projects that use bots to push these numbers to look good. So how to judge the quality of a community?
Here are the factors I often consider:
– Activeness of the members: if the project has many active members, or talking in Discord, that is a good sign.
– Content that members often exchange: we should observe the content and stories that community members exchange to know more about the community’s thoughts and attitudes about the project. Are they the people who believe in and support the project?
– KOL monitoring and supporting the project: this is also a very important criterion. If there are major NFT KOLs following support on Twitter, this is a good sign for the project. The project can reach more people if these KOLs actively share about the project.
However, the community is a reflection of many internal factors of the project such as: marketing strategy, team, backer, tokenomics, product, etc. And when a community is large, the potential of internal factors. at this has been clearly reflected. At that time, there were not many opportunities for us. It’s like a rule in investing: what is too obvious, there are not many opportunities, opportunities only lie in unclear things.
How to identify a potential NFT project?
So how to identify a potential project when the project is still in the early stages, everything is still unclear, so that we have a better position and higher profits.
Here are the key criteria we will need to research to find a potential NFT project:
– Idea: what is the idea and vision of this project, is it a creation or a plagiarism from other projects. If you have a new idea, that will be a plus. However, not every new idea is good, it also has to be feasible in it.
– Of what type?: It is very important to determine what type of project the project is. Money flow in the crypto market operates according to the trend, if the trend is A, then the projects working on A will have a high probability of receiving a large inflow of money. So a trending project is a plus.
– Product: If the project already has a product, experience how the product works, how smooth it is, and compare the quality of the product with similar projects. If the project does not have a product yet, we continue to look at the roadmap.
– Route: roadmap is the timeline for completing the project’s product. When looking at the roadmap we will assess whether the project is on the right track or not. If the project develops on the right schedule, it is a plus point.
– The Aesthetic of NFT: for NFT Avatar projects (NFT can be used as an avatar or otherwise a PFP) aesthetics is an important factor. If the character is designed beautifully and properly, it will somehow make the community and ourselves more interested. Besides, it also shows the investment of the development team.
– NFT Utility: this is a feature of NFT. We will have to study what role this NFT plays in the product, it can be: NFTs are used to play games, NFTs are used to earn tokens, NFTs are used to receive product profits, etc. NFT has many features in the ecosystem of the product, the more valuable it is.
– Artist: for NFT Art, the artist who designs the collection is an extremely important factor. If it is a famous artist, the project will be more trusted by the community.
– Team and backer: A project with a team of experience, hard work and dedication to the project will be a huge plus because in the end the most important factor of all projects is people. People. However, in order to partly assess the working attitude and enthusiasm of our team, it takes a lot of time to observe, be it through the product, through the way they communicate in the community, etc. in general look at all that they are doing.
Besides, backers are also an equally important factor, these are usually the head funds, angel investors behind the project. However, most current NFT projects do not have backers.
– Marketing: if the project possesses good internal factors but does not do good marketing and community development, it is also unlikely to succeed. We can evaluate marketing projects through Twitter, Discord or the project’s social media channels. What’s interesting about the way the project does marketing? What are they doing to get the community’s response? A marketing project that is always associated with giving people a deeper understanding of the product and the vision of the project will be a huge plus because it shows that they really believe in their product.
NFT is a very risky market, newbies will find it difficult to identify a potential NFT project. However, risks will come with high returns, understanding and evaluating the project will be a vital skill in the market and it needs to be practiced and honed daily for a long time. The AANC team hopes that this article will provide useful information for everyone in the journey to conquer the NFT.
About AntiAntiNFTs Club (AANC)
AntiAntiNFTs Club (AANC) is a community of NFT collectors and investors in Vietnam. Stemming from the love for NFT AANC always wants to spread that love to everyone through building a quality community, a place that is true to our slogan, “Can’t help falling in love with” NFTs”.
See more previous AANC articles:
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