Are you interested in investing in NFT projects but not sure how to spot high-quality ones? Look no further! In this article, we’ll go over some key qualities and characteristics to look for when evaluating an NFT project.
There are two factors to consider when evaluating the quality of an NFT project. General factors that are helpful for every project, and specific factors that are tailored to certain types of projects.
Considering these factors can increase your chances of investing in a successful NFT project. Let’s dive in!
Must haves
These factors are good to look at for every project. No matter if it is a tool, an art project, or a generative profile picture collection.
Community
A strong and engaged community: good NFT projects have strong and engaged communities. The community is actively involved in the project and helps to drive its success.
This could involve regular communication and engagement through social media, discord, and other online channels, as well as events. Check how many people are voluntarily interacting with tweets, joining spaces, and chatting in discord.
The core community of the NFT project is the people that will hold the NFT. These are the people who are not going to quickly flip it for a small profit. The more of these core active users a project has, the higher the floor price might go.
Website
A project without a website or only a mint page is not planning to stay for long. Long-term projects will gladly invest in a good-looking website to spread their message.
A good-looking website for an NFT project is a worthy investment because it will increase trust and credibility. In the NFT space, a professional and well-designed website can help to differentiate the project. A clean site will give it a more established and trustworthy appearance.
The quality and attention to detail on the website make all the difference. How does it look on mobile? Are there any animations? Does it look original? The website is the first output of the project, if it is not good, why would the rest be?
Team
a doxxed team with a lot of experience can also be beneficial for an NFT project. By revealing the identities of team members and showcasing their experience, an NFT project can demonstrate its credibility and professionalism.
This can help to build trust with potential buyers and can be useful for building partnerships and collaborations. Teams with a lot of experience can bring valuable expertise and insights to the project, helping to ensure its success.
The more connections your project has, the easier it will be to stay afloat. Look at the socials of the team and the quality of the previous projects the team has worked on. If those are good, this new project might be a banger as well!
Twitter is the public square of Web3, this will drive most of the buyers and community to the project.
To identify a good project you can start by looking at the level of engagement on their tweets. Is it genuine or does it seem like they are just trying to boost their numbers?
You should also consider the number of followers they have. While a large following is not necessarily a guarantee of quality, it can be a good indicator of the project’s popularity and reach. You should also watch out for any signs of engagement farming.
Engagement farming is when a project artificially inflates its engagement numbers. This could be done through tactics like giveaways or “interact for wl” schemes.
Another factor to consider is the content they post. Do they just post giveaways or do they also share sneak peeks and other content? Finally, you should see if they are hosting any spaces or events related to their project. This can be a good indication of their commitment to building and engaging with their community.
Nice to have
While it’s not necessary to have all of these factors, having one or more of the following three can be a good starting point in determining the quality of an NFT project:
Story
A compelling concept or story: A good NFT project will have a compelling concept or story that sets it apart from other projects and captures the imagination of potential buyers and investors. This could include a unique theme, an engaging narrative, or other elements that make the project stand out. Look at the originality of the concept, if it is something new it might be a good indication that it is a quality project! On the other side, if it is a derivative of another popular project, it will probably make it out of this bear market.
Art
High-quality art and design: A good NFT project will feature high-quality art and design that is visually appealing and captures the essence of the project’s concept or story. This could include original artwork, digital assets, or other types of content that add value to the project.
If there is a real-life artist with a reputation behind it, it might not need any of these other points at all. There are more than just profile picture NFTs. Digital art collections by real artists can get really high floor prices, without any community, socials, or site. As long as there is a promising artist behind it!
Utility
The utility is another important factor to consider when evaluating the quality of an NFT project. Utility refers to the practical use of the project, and it can be a key factor in its success. Projects with high levels of utility are often more valuable and in demand, as they provide a tangible benefit or service to their users.
For example, an NFT project that offers useful tools or resources, such as alpha calls or other exclusive content, may be more attractive to potential buyers. However, it’s important to ensure that the utility being offered is high quality and original, as this can help to differentiate the project from others in the market. In some cases, a project with strong utility may not need to rely as heavily on other factors, such as a compelling concept or strong community, to be successful. Ultimately, the utility can be a key driver of an NFT project’s success, so it’s worth considering when evaluating its quality.