There are a lot of great NFT projects, and then there are even more horrible ones. All NFT Investors are willing to invest only in a good NFT project for good profits. Here's the question, "what makes a good NFT project?" Let's see what makes it.
What makes a good NFT project?
Let's explore together what makes a good NFT project-
Strong Founding Team
Social media marketing, brand management, community management/PR, blockchain development, and preferably an artist with a distinctive flair are some of the important abilities that a project needs.
Artistic quality is a matter of opinion, and some extremely popular projects have horrendous art. The issue is not what constitutes excellent NFT art, but rather what elements go into a project's success.
The artwork for Bored Ape Yacht Club, now the most popular project ever, was completed by a freelancer for a one-time fee. Once a project has achieved success and developed a distinct style, it is extremely simple for other skilled artists to copy it and fill in the gaps.
Ideally, you'd also want the team to be fully doxxed, meaning that their identities are public. It's easier for anonymous teams to abandon a project if their personal reputations are not on the line. Doxxed teams are more likely to pull through in the long run.
Community Strength
Not every NFT project needs a community, but a vibrant community is a strong indicator of a promising project.
A large following can become a project's main value proposition, making it not merely a powerful tool for marketing. Investors in a project who hold an NFT have motivations that are similar to those of the team.
People desire to stay a part of an exclusive "club," therefore belonging to a group with exclusive access privileges also helps develop brand loyalty. Because they are enjoyable to hang out in and promote a culture of reciprocal promotion, positive and inclusive communities frequently perform well.
We recommend you spend at least a couple of hours in a project's Discord channel to gauge the responsiveness of the founding team as well as the activity of the community.
The Roadmap
Now, to be quite frank, you should always take these roadmaps with a grain of salt. As GaryVee has said on multiple occasions, roadmaps are nothing but a startup's pitch deck.
And a pitch deck is never a guarantee that something will actually happen, they are merely a promise at a point in time that a founding team plans to do something. So if someone asks what makes a good NFT project, the roadmap shouldn't be your first response.
Remember, you are buying into a vision and the likelihood of that materializing will largely depend on the ability of the founders to actually execute it.
The vast majority of startups fail and the same holds true for NFT projects. That being said, a roadmap will give you an indication of what the end goal of the project is and that will help you decide whether the project is for you or not.
Media Exposure
PR is a remarkably underutilized marketing strategy. A project's chance of success will almost likely increase if it gets the first page of major media outlets due to the added exposure. This makes sense because media exposure contributes to the development of brand recognition, and brand development is by far the most important aspect of the project if the project's goal is to establish itself as a streetwear brand.
This also covers famous people who have acquired their own NFTs of the undertaking. Popular celebrities' exposure on social media is almost certain to improve the public impression of that project. In social media, social proof is a potent tool.
Utility
The term "utility" is becoming a more crucial component of many projects' roadmaps.
With increasing NFT prices many late investors obviously want to know how the team plans to bring additional value to its holders which will help increase the token's price.
There are roughly 2 different categories of utility that have emerged.
The first category involves some form of real-life utility, such as access to a conference, exclusive access to a high-end restaurant chain, or in its simplest form, access to merchandise.
The second category is purely digital in nature and can involve access to certain areas within the project's Discord, early access to content, access to play-to-earn blockchain games, or even yield from the project's own ecosystem token.
I'd definitely say the utility is one fact of what makes a good NFT project!
Price Stability & Endurance
A project with a history of stable growth and only limited hype-driven swings is usually a better investment because they are an indicator of long-term holders.
A good example of such a project is Veefriends by GaryVee. Big swings fueled by hype are typically a symptom of several-day traders who profit from the price pumps and subsequent dumps. They seldom ever care whether a project will be successful in the long run. When a project has been around for a while, price history also plays a role.
Conclusion
What makes a good nft project? I hope now you understand what it is. A good NFT project is one that will endure the eventual crash.
Just keep in mind to conduct your own research, keep an eye out for warning signs, and never invest more than you can afford to lose before making an investment in NFT ventures.
