Best Techniques for Analyzing Upcoming NFT Projects

Non-fungible tokens (NFTs) are by no means a new venture; these have been around on multiple blockchains for 2-plus years. Each NFT project brings a unique approach to what they are looking to achieve and what kind of community they are trying to build. 

For any newcomer, it can be immensely difficult to measure the success of a project, just by looking at the project’s roadmap, community, and vision for their NFTs. To follow, will be a full guide on minting and trading NFTs, how to analyse the potential of a project and if it will be a success. 

Blockchain technology presents a great opportunity for innovators, and there is a lot of good that can come from building on it. Currently, blockchain technology has not reached its’ full potential, and there is much more to come, following more structured regulations, and giving investors reasons to stick around. 

What are the blockchains currently used for? 

Blockchain technology is not new by any means, however, only in recent years has there been real and applicable use. Being able to view all transactions ever made on the blockchain is one of the biggest benefits of using it. Many cryptocurrency enthusiasts are aware that online casinos have been building on blockchain technology for some time, with big regulators, such as the Malta Gaming Authority, endorsing the use of blockchain technology, as well as the introduction of crypto-powered payments, for online casinos. 

It may be the case that users now use these blockchain casinos to play blackjack, roulette, and other similar table games, along with video slot games. However, in the near future, it’s not too far-fetched to imagine a stock-style trading platform built on blockchain technology, or another similar field such as banking joining the fun. The introduction of the Central Bank of Digital Currency (CBDC) only increases the likelihood of integrating mainstream societal systems. 

Identifying the use of an NFT project

What should be considered as the main reason for wanting to join a NFT community and project? The first thing to identify is the end goal of the project, what they are looking to achieve, and if there is space for this in the space it’s being launched in. In order to minimise the risk of entering a project that won’t succeed, this should be top of the list of things to consider. 

With interest in NFTs being at somewhat all-time lows, the risk is now much higher, so it’s heavily advised to enter a project that has an actual use case. A good example of this is a mining project, where the funds raised are used for equipment to mine, that provides regular rewards for the holder. 

Another great use case for a project is to invest in a technical platform project. This can be software being created that gives good insights on what can come in the future. For example, a platform that would assess upcoming NFT projects, tokens, DeFi and new cryptocurrencies being launched. 

Always look for unique art

After the exponential rise in popularity, the number of NFT projects launching exploded during the hayday of 2021/22, which in turn brings forward less potential in success, due to the markets being so saturated.

Art is one of the cornerstones of a project, and it’s vital to ensure that the art is not only unique but attractive. Art is always something that is subjective, of course, and if it really sticks out to you, it’s worth having. If you are happy with the visuals of the art, it makes it infinitely easier should the project not work out, as at least you’ve got something you find attractive sitting in your wallet. 

Ensuring the founders and team are genuine

One of the least attractive things about NFT projects is that it’s incredibly difficult to identify the genuine nature of the founders and if their intentions are what they say. The best way of doing this is to join projects where the founders are doxxed, meaning they confirm their name, experience, and reasons for starting their project. 

It’s vital that the founders are somewhat experienced in the sector they are looking to launch in, if they are launching a DeFi for example, some of their team should have vast experience in finance or even have university degrees in this sector. 

Ensuring the community is real

A common mistake in the NFT space is to assume the success of a project based on the number of members in Discord spaces, or followers on Twitter (X). To base your opinion on this alone can prove incredibly risky. 

There are various systems and bots that can be purchased to boost the follow count and engagement on both Discord and Twitter, which can give a false sense of security, giving the sense the project is way more popular than it is. Speaking with the members within can often give a great insight on if the community is as genuine as it seems.