What to Look For in Good NFT Project?

Blockchain holds a lot of potential. But how to find good projects? There is no one answer. It’s important to do a thorough analysis before investing in any project. 

Here are 20 important aspects to consider when assessing an NFT project:

1. Popularity: The first thing to look for is popularity, which essentially means user adoption and market demand. Projects with high levels of interest or significant backing by crypto influencers are likely safe bets for investment because they have either already proven themselves or have intrinsic value that makes them more appealing than other projects at the moment being developed.

2. Fees: Next, look at the fees. High fees undercut most of the benefits of a blockchain. Fees should be kept to a minimum so that investors can make the most out of their returns on investment. If you see a high fee amounting to 5% or more of your projected ROI, stay away from that project or ICO.

3. Transaction Speed: Other important aspects are transaction speed and transaction volume. NFTs should have minimal transaction speed and processing time because slower speeds mean higher transaction costs which drive potential users away from using the platform thus eventually destroying investor value in the long run.

4. Reputation: Reputation is another important consideration because it gives investors an idea of the current and future value of the cryptocurrency. With any ICO worth investing in, there should be solid reasons for doing so. This includes a good reputation, its use case, and other factors that make an ICO attractive to potential investors. When it comes to investing in NFTs, one should check whether the project has any significant backing from crypto influencers or a strong use case as well as a developer team. also look for a mature product/service that enables payments within the platform as well as actively engaging with its users and customers through social media platforms (i.e Instagram, Twitter or Facebook). All of this will boost a project’s legitimacy (and hence its value) in the eyes of investors.

5. Social Presence: Social media presence is crucial. The founder should have their own accounts on the sites they are promoting their project, they should have at least 250 followers on each site. Twitter is the biggest site and getting a Twitter page has become a necessity these days where the lack of followers means less exposure and less trust.

6. Community: Community growth is something that can be measured. This closely ties back with social presence. A community growth could be seen as a good thing because it means there are more people backing the project, however having many fake accounts just means that there are fewer real people backing the project as fake followers will not help in getting support for your idea.

7. Reach: The reach on platforms such as Reddit, Twitter, and Slack makes it more difficult for the startup to get attention from prospective investors. The presence of these platforms helps some startups get noticed with a high rate of activity.

8. Smart Contract: It is crucial that the smart contracts are well thought out, they should be able to function and build trust within the community. There should be little or no problems with how the smart contract is written which could lead to buyers/investors losing trust in the company and leaving.

9. Security: A company needs to have security systems in place that is transparent and auditable by all involved parties, they need to assign clear roles and responsibilities between different team members so that there is a trusted system.

10. Roadmap: It is crucial for the company to have a complete and clear roadmap that is in line with the goals of the business. This can be a good way to show investors and potential customers how things will be completed in the near future.

11. Token Sale: People need to know that this project won’t end up being another scam and it needs to be handled very carefully in order for people to understand what is going on behind the scenes. There needs to be a clear set of rules on how they want their token sale funded so that every investor knows what they will get and how much they will get.

12. Exclusivity: The project should be open to the public, with no barriers to entry.

13. What Blockchain they are built on: The blockchain should not rely on any one individual or organization for its security or functionality. The project needs a transparent and accountable team that can operate without being paid for an indefinite period of time. Much like cryptocurrency markets, Initial Coin Offerings (ICOs) are booming. However, there is also a lot of uncertainty and hype surrounding new blockchain projects which makes it hard to discern what is a legitimate and worthwhile investment opportunity and what is just a scam trying to take your money away from you.

14. Volume and Price: There is a lot of money to be made in cryptocurrencies. Therefore, there will be a lot of projects that are trying to capitalize on the hype around these assets. A good way to find out if the project is real or not is by checking the volume and price of its token. The more the volume and price increase, the more you can be sure that it has potential.

15. Longevity: The main goal of any blockchain project is to make new profits and develop new technologies for its userbase. If a project does not have a clear roadmap for its future developments, it should be seen as less legitimate than other blockchain projects out there.

16. Cooperation: A good blockchain project also has cooperation with traditional corporations from around the world.

17. Utility and Copyright: A project that is only focused on making profits, rather than contributing to the technological advancements of the blockchain, should be seen as less valuable.

18. Sales and evolution: The amount of funding a project has raised should be a good indicator of its worthiness. According to an analysis conducted by Token Report, 2017 was one of the best years for ICOs. As a result, many projects will have extensive funds available upon their completion.

19. Team: A good Blockchain team should have relevant experience in the industry they are trying to operate in. Furthermore, they should have enough partnerships and experience from which to draw when designing their roadmap for their desired product or technology.

20. Financial Details: Financial details can showcase the seriousness of the company. They should be able to display how much has been invested in this project and what is projected for future investments. If there are not any financial details available then there may not be an active project which could lead to bankruptcy or fraud accusations.

Conclusion

When it comes to investing, what you need to watch out for are the above points and make sure those aspects are checked, analyzed, and guaranteed before investing in any NFT project. This is especially important for ICOs because if you do find a good one, do your research thoroughly before investing so that there is no fear of losing money. Also, whatever projects you invest in must have the potential for growth and potential for future profit as well as high usage numbers by end-users.