TECHANOLOGY

How To Find And Estimate Legitimate NFT Projects In The Digital Realm

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Remember the extraordinary infestation of e-commerce startups in the United States between 2005 and 2010? A lot of people believed that everything could be sold on e-commerce… And some of them even got exorbitant funding going as high as $50 million. However, a lot of such startups failed to see success because of the lack of vision and direction.

The NFT space is precisely at this zone right now. With the presence of organisations that can enable creation of NFTs, NFT launchpads, and best NFT marketplaces without much difficulty, a lot of people have started to exploit this innovation and have started to look at it as a means of quick money.

While dismay looks like a lucrative opportunity for businesses, it presents a formidable trait when looked at from an investor perspective.

This mandates a need for someone to be guided on identifying legitimate NFT projects before they invest their hard earned money in it. It is not difficult after all! With a few clear pointers in black-and-white, it is quite easy to set apart the rotten apples from the ones that you can depend on!

PS: with respect to purchasing NFT art from individual creators, you will need to exercise a different direction of diligence. What we are concerned about here is exercising your meticulous thoughts and judgement in choosing the right NFT project to invest in.

The team and the record:

Perhaps one of the most prominent and not so confusing indicators of the credibility and dependability of an NFT project is the credibility of the team. If the team brings a rich experience, a record of having launched successful NFTs before, and a deeper understanding of the world of NFTs, then you should probably go on and invest in that project.

The flipside of this direction is that you might not be able to land on NFTs that give you immediate results but the team with such an experience will be intent on building an NFT ecosystem that is sustainable in the long term. They are not here to make a quick buck and this would mean that probably you cannot as well!

There might be instances where the same team has launched NFT projects and NFT market places through their technology enablement. Those should deserve a greater magnitude of attention because they are bound to do a project far better than the previous ones because of their learning.

A tangible roadmap:

Roadmap yes the most visible component of dire vision and mission. If the project has a roadmap and if it does not seem too far-fetched, then you should probably consider investing in that project. Let not the roadmap promise astounding revenues or exorbitant benefits. Some NFT projects go on and promise that you could have a yacht party within one year. However, some other NFTs promise that that will be a proper, self sustained, and interactive meta-verse in one year. This could possibly be considered a tangible roadmap for the project.

In all of this the project should also have its roadmap centred around the community and not around the founding team. A roadmap that satisfies both these conditions could be considered one of the most prominent and dependable green signals for you to go ahead with investing in the NFT project.

The Communion of the community:

NFTs and every manifestation of the biscuit technology is all about having a robust and participative community. Having more than 100,000 members on their Discord channel or having more than 1 million likes for their Twitter handle is not enough! The community needs to engage with each other and should be able to form a symbiotic support system for each other.

The launching brand should take initiative in ensuring that the community stays active. Participation (irrespective of it involving transactions) should be rewarded. If a community, and in this specific condition, the Discord server has more than 100,000 members on the fifth day of the project, then probably, the community has not grown as organic as it should have. However, if there is a gradual, sustainable, and organic growth, the community is to be more active.

The insistence on verification:

A proper NFT project is not helping in getting people for the sake of numbers. But getting people for the sake of the community. Therefore, such NFT projects will insist that you complete your KYC/AML formalities while they still do not function as a barrier in accessing the NFTs and information about them.

If the NFT project lets you fund your wallet and buy NFTs without completing your identity verification. It should probably be a red flag for you. On the other hand, if the NFT project insists that you complete your KYC. You can be assure that the NFT project. The company and the founders are in compliance with the legal/compliance formalities.

The numerical parameters:

When it comes to NFTs, at least not with respect to judging the authenticity of the project. However, there are certain numbers that can help you validate the authenticity.

If you check the NFT marketplace, you will be able to see the floor price. If a lot of people are trying to sell the NFTs at floor price or below it. It is quite possible that the NFT collection might not have been as attractive. That is probably the reason why people are dumping it.

The NFT marketplace platform might also show the rarity of a particular NFT. Sometimes, you might have to depend on external tools to validate rarity. The fact that there are certain NFTs that could be a rare and extremely collectible. 

Even in the world of NFTs, we have the concept of whales. If there is one owner who holds an exorbitant number of NFTs, then it is probably a bad sign. If that particular owner decides to sell all his NFTs. It might drastically alter the demand supply equation, which results in the project and its very foundation!

Closing words

There are plenty of fish in the sea but not every fish is worth the catch! The worst part about myopic decisions. Is that the people who end up being turn into prominent proponents of the anti-NFT brigade!

If you were to exercise your diligence and be meticulous in making your decision. On which NFT to invest on, you are probably going to be a passive validator of this manifestation of technology. In which is still in its nascent stages. But has quite a lot of muscle to change the game for multiple industries!

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