Why is everyone releasing NFTs?
Plus, how do you know if an NFT is worth buying, and which you should avoid?
When we were researching for our own NFT project, there’s one thing that you can’t miss: it seems like everyone is getting into NFTs. Brands, individuals, companies that don’t even operate in the online world, it feels like everyone is jumping on the bandwagon. So, why is everyone releasing NFTs?
And how do you know who’s serious about it? How do you know who wants to make a quick buck and who believes in the concept of NFT marketplaces? Which projects are thought through and who’s selling glorified trading cards?
The answer is simple: by analysing the strategy: any business that’s serious about this will be looking to tick the same boxes. Here are some of the key signs that you can look for in the NFT market before investing in NFTs:
- Utility is key
Utility is the main thing you should be looking for: does the NFT provide a functional benefit that goes beyond owning a digital token which you can resell? Our NFT project will give owners access to a range of exclusive events and experiences, from private gaming rooms to special tournaments and real-life events.
Ultimately, utility is the real value of NFTs as a concept. You can think of them as a one-of-a-kind backstage pass, or a limited edition key that opens the door to experiences that are unobtainable anywhere else. So many expensive items hold value in terms of money and status, but NFTs can offer an entirely new kind of value. If you don’t see that in a concept, you’re not buying into much more than a filename.
- Power comes from community
NFTs are a brilliant way to start an online conversation that turns into a community. Potential buyers of NFTs rely on platforms like Discord, Reddit and Twitter to gather information about the popularity of an artist and upcoming projects. These platforms are also used to establish a place for people with the same interests to interact. These forums are also incredibly insightful, an excellent way to learn and communicate with people who have similar interests.
For instance, our community consists of people with a passion for gaming – also on Discord, Reddit and Twitter. The crossover with NFT fans, between this group and the channels on which they congregate, allows for the potential to build a whole new community that provides members with real value; in the form of information and content. These are the types of communities you should be looking for.
- Web 3.0 potential
In the investor community, it’s already a commonly held belief that if your business isn’t prepared for web 3.0, you don’t have much of a chance. Any brand – particularly a startup or emerging company – that’s worth their salt is staking a claim in the space.
If you see a good concept for a business with a good strategy for Web 3.0, there’s a good chance they’re going places. Plus, if you work for one, it represents a tremendous step in the future of employee benefits. Imagine a world where you get a company NFT when you join, which you can sell on for a profit if the business does well. It’s like being an investor without needing the capital – you simply add a digital asset to your personal balance sheet.
- The creative concept
All successful NFTs share one attribute: a concept that speaks to people. Because an NFT can be literally anything, there’s a lot riding on the artistic concept and storytelling element of the project. NFTs were pushed into the mainstream by the art world and digital artworks, after all – so it’s a core element in itself.
We’ve got a concept that speaks to our expertise as a business and happens to look great too. The concept has the idea of rarity built into it, with an inherent hierarchy that anyone can grasp in a few seconds. We can’t say much more for now, but we really believe it’s going to speak to a lot of people and we can’t wait to debut it.
- The Roadmap
You always want to look at a project with a clear roadmap to success. The concept needs to be suited for expanding the mint across multiple releases. There’s a reason all the most successful projects display their roadmaps front and centre: it really helps to keep confidence in the project when you hit the inevitable bumps in the road.
A well-planned project simply offers more value: if you want people to spend millions of dollars buying and selling your NFT you’d better have a host of benefits and cool ideas in reserve for people to get excited about in future.