Lately NFT Projects have been popping up everywhere. If you are not familiar with what a NFT is please read my previous article here. Great! So what makes a NFT project so successful? There are so many of them and they can be difficult to navigate. There are a few key points that are useful to identify which NFT projects are worthwhile.
These are the elements that allow a project to be successful; Community, artwork, road map, marketing, discord, twitter and more. We will explore these topics and try to determine some thresholds for success.
NFTs have become a topic of discussion in all walks of life. NFTs have brought people together. Some of the successful earlier projects such as CryptoPunks set a standard of 10,000 NFT tokens. They were able to create such a vast number of unique images thanks to computer programing. These image variations were computer generated thus reducing the production time drastically.
The artwork is an important part of the project. I often see big NFT projects with mediocre art. It is disappointing considering all the time and energy being put into all the other areas of launching the project. Having a graphic artist who understands how to create great art is crucial to stand out in the sea of all the NFTs out there. Including interesting properties for all the NFTs in your collections is helpful to give back to the ones buying your NFT and supporting your project. Properties are how you can identify one NFT in the collection to another i.e. hair color, background, accessories. Having cool accessories throughout the collection is important to make every holder of your NFT feel special. Supporters spend a lot of money buying an NFT and should be rewarded for their commitment.
Road map is the story and path that the creators of the NFT collection would like to accomplish. It’s been great to see all these communities try and build something positive for the future. The road map lays out the plans for this forecast. Some examples of things that are included are, sharing some of the profits from the secondary market with all holders of NFTs, creating merchandise specifically for holders of NFTs, Having actual meet up activities for the community and much more. There are also the few that have a charitable aspect, they wish to build sanctuaries and wildlife reserves or even feed animals.
MarketingMarketing is the most important part of the NFT project. It is so difficult to get the word out and get people interested in the project. You can have great art and a super awesome road map but if people don’t know about it, no one will buy your NFTs. Educating the community and explaining your project well takes skill. I am still learning the correct tactics. Having a large following before getting started is a huge asset. I have seen the importance of having a large community on Twitter, Discord, Instagram (somewhat) and even Tiktok has been monumental to drive traffic to the minting website. A project with 15,000 followers on these social platforms does have a good starting base for a community, anything less is debatable.
CommunityCommunity is found in the Discord app mainly. Instagram and twitter following is very important and a good way to judge the community. Anything over 15,000 members is a good start.
If you are trying to see how a project is doing before they launch I recommended getting on the discord app. Asking questions and seeing how many people are active. *(You can check the ranks page in the discord to see how many people are actually active.) A profitable NFT project must sell out. In order to sell out you need lots of supporters (buyers), more than the number of NFTs available to mint.
Getting into a good project early is important but also difficult to find. Most projects have a presale. This allows buyer to jump the launch date and mint NFTs without the pressure of selling out. To get into the presale you must get on the white list. Getting on a whitelist is pretty easy but chances are that there aren’t many people in the community at this time.
WebsiteHaving a solid website is another important element. The personal website for the NFT project allows users to get informed without distraction. It is an easy way to evaluate what is going on for the project. The website should include the roadmap, story about the collection, bio of the founders and people involved, link for the minting smart contract, talk about where will be the aftermarket marketplace (where will they be resold) and link all the social platforms in one place.
There is a lot to consider when looking at a NFT investment, the most important is your personal opinion. Community is a good way to tell what will happen on launch day but in reality watching how many are being minted is the only truth. I am currently watching a few projects launching and its very hard to tell if they will be successful. Watching from the sidelines is the safest bet but rewards go to those who purchase. Until I am confident in identifying a successful project I will continue observing how it plays out. I have yet to witness a successful drop from inception. Hopefully I can be patient until then to have clear references and key point indicators.