The hype around NFTs is real.
If you want to know the best qualities to look for in a NFT project then look no further, because I will break down exactly what to watch out for.
Step 1 - Check The Art
Let’s start with the most subjective one. Projects that are successful have art that is recognizable and catches people’s attention.
It is true that there have been successful projects with pixelated art, such as Cryptopunks, but only a few of them have been successful.
Here’s what to look out for to find NFT projects that have good art.
- The Art Is Eye-Catching
When you look in your wallet, you want to be happy seeing it every time. Good NFT Projects have Eye-Catching art in them.
Step 2 - Check The Community
Community-driven projects tend to be the most successful. A community has been created, and a culture has been established. Culture creates a following.
If the project has an active community that speaks with passion and excitement about the project, it’s a good indication that the project has a high chance of success. Culture and shared values are key for NFT projects.
It is one of the most important aspects of a successful project.
Community plays a crucial role in the success of a project.
It is the single most common thing I come across.
Most communities form via Discord. For its members, it feels like an exclusive club and feels like being part of a hip party or part of a family of like-minded individuals.
To make up your mind if the community is good, join their discord server and ask yourself following questions:
Step 3 - Check Their Socials
The social media presence is important not just for the number of followers they have, but also for their tone of voice and level of activity.
Where are they present?
Do they just have Twitter or also Instagram & Discord? Is their Discord organized or is it just a simple version with a couple channels and no moderation?
Make sure the NFT Project has setup basic social media channels such as Instagram and twitter at the very least.
Some NFT creators buy fake followers for their social media channels to boost credibility. Some even buy engagement in their posts (likes and comments)-
This tactic isused to increase the creator’s engagement rate and make the project seem more legit.
However, looking closely at those comments often reveals them to be fake. They may say simple things like “Awesome! I really like that” or “This is awesome.”
Step 4 - Check The Website
Having a website that looks good and clearly communicates what your NFT project is about is essential.
If the NFT project does not have a website, consider it a huge red flag.
A website is an opportunity to create a great first impression and provide people with comfort that you have put effort into the project.
Step 5 - Identify Of The NFT Creator
If a collection has been officially launched by a major brand, a celebrity, an established artist, or a well known athlete, then you’re probably dealing with a legitimate NTF project.
The more established the creators, the more likely it is that they are legit projects. Even if their collections were not launched by celebrities or influencers.
However, take this more lightly, because there have been many very successful projects which are not by major brands or celebrities.
Some projects that pulled a rug-pull, had a decent following on Twitter (over 10K) and a decent amount of people in the Discord (a few thousand).
I’ve seen many legitimate projects with smaller figures. Of course, all of these are numbers you can (cheaply) buy to bolster the appearance of legitimacy. What is more difficult to fake is the engagement, and in hindsight that project had fairly low engagement in both the Twitter and Discord.
It wasn’t so low that it was more suspicious, but it was definitely not in line with the amount of “followers”.
If you suspect that they followers are fake, check their discord and go into the general check and see if the community is active.