5 tips to recognize a good NFT collection

Updated on November 04, 2022 at 1:22 pm

NFTs have seen an explosion in the past two years. With them, scams have also multiplied, leaving room for a certain distrust of investors towards NFT collections.

However, not all of them turn out to be scams but useful investments on which profits can be made. This is provided that you know how to choose them well.

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Discover the creators of the NFT project

To differentiate a good NFT collection from a he consit is important to start by learning about the creators of the NFT project.

In fact, like a trading algorithm, knowing the origin of the project is an essential element to judge it.

The track record of the creator and his team is an excellent indicator of reliability of the project.

In the event that a creator accumulates failures, there is a good chance that the project is unsustainable and that it is a scam or simply an unambitious project. As a result, your NFTs are unlikely to gain value and your investment could be wasted.

On the other hand, if its creator already has some success and is strong good reputation then the NFT project also has a good chance of success.

Likewise, within a team, it is interesting to know the complementarity of individuals who composes it. If this team is made up of just marketing cracks or just developers, then there is an imbalance and the project appears to be shaky.

But if the talents are balanced, the project will have more credibility and more chance of success.

Study the NFT project white paper

Just like a classic cryptographic project, the White paper or white paper forms a base.

This document, accessible to all, refers to the objective of the project, its structure, its economic policy, its media strategy and its roadmap. In other words, it is its complete matrix.

An NFT project that hasn’t published a white paper is worth nothing. If not, a light paper it is desirable.

By reading the white paper, users must get a clear vision of the project and the values ​​it wants to convey.

Take the example of the NFT collection Mutant punksone of the most popular CryptoPunk derivatives, has published a comprehensive white paper and a roadmap accurate information that allows investors to know the development trend.

What is the NFT collection for?

NFTs can be developed for various reasons. They therefore have multiple uses depending on the project and its objectives.

The collection Bored Ape Yacht Clubfor example, it has a artistic utility supporting the feeling of belonging to a very select club. They also have a speculative role.

Some NFTs play an important role in ecosystems Play to earn (P2E). This is the case with Sorare and NFTs in the form of a collectible card of a football, basketball and baseball player.

Still others have a purely artistic role and act as the canvas of a great painter. Owning them is like owning one artwork to display.

The use cases are numerous. So, it all depends on what you want to use it for.

However, it is essential to fully understand the role of NFT before investing. Is it a short term trade or rather a long term investment? Is it an artwork purchase or a worthwhile in-game purchase?

These questions are essential to define before purchasing an NFT. Indeed, judging a collection good or bad it depends on everyone’s expectations and the utility connected to it.

Evaluate the marketing strategy of an NFT project

The Marketing strategy of an NFT collection is also an important aspect that determines the success of an NFT collection.

Like big brands, NFT collections that work are often driven by an aggressive marketing strategy.

Using social networks and renowned influencers, these projects quickly find followers. They create a advertising hypea craze for their collections.

This creates a strong community that adhere to the values ​​of the project and the team.

The case of the Bored Ape Yacht Club is interesting. By purchasing an NFT from the collection, investors become part of a private group.

In addition to the satisfaction of sense of belongingthey create strong demand And reduce supply at the same time. Satisfied members of the group they belong to do not wish to sell their seat and keep their NFTs for a long time.

Therefore, the marketing strategy in place must be at the origin of the purchasing force present on the collection.

This buying force has two advantages:

  • Sales are recurring and the price tends to rise;
  • Simplify the acquisition of simple NFTs.
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How innovative is the NFT collection?

The technological innovation of an NFT collection corresponds to its technical development.

Most NFTs are hosted on blockchain Ethereum And Solana.

These two blockchains are the most reliable when it comes to NFTs. Their technical possibilities they are pledges of seriousness and interesting potential.

However, the innovative goal of a collection is also due to its pioneering appearance.

Sorare, for example, was one of the first P2E games to make a name for itself on this niche. By combining blockchain, NFT and video game technologies, the Ethereum-based platform pioneered a immediate success and continues to seduce.

Step’N is another example of a pioneer who reinvented the concept of sports application transposed to blockchain and NFT technology. Faced with this new Solana-based concept, its popularity grew very rapidly.

He particularly benefited from this enthusiasma reward system beneficial to users.

StepN Reward System Reviews
Reward level depending on the type of NFT sneakers purchased (1TPS = 1 GST)
Source: StepN White Paper

The NFT market is quite different from the cryptocurrency market. The mechanic And the bottom are the main elements that separate them.

However, they do share some points in common, most notably the multiplication of scams surrounding them. To protect yourself from these scams, it is important do your research.

NFTs represent only a small fraction of the possibilities offered by blockchain technologies. Crypto Rider training allows you to understand these different markets and analyze the right opportunities!

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