Fortune or Failure: how to validate an NFT project?
Before investing in a new and promising NFT project, you may want to look into its potential future value and overall success. After all, you likely want to gain something from your investment, and knowing more about the project beforehand can give you a better insight into its success in the longer term. In this article, we dive into the three most essential aspects that impact the value and overall success of an NFT project: the creator, the art, and the community.
Not sure how to validate your NFT project? No worries! Grypto gladly lends you a hand. Get in touch for advice and collaborations.
Who is the creator?
The team behind the project can tell a lot about the potential success of the project itself. For example, you can try to find earlier projects they’ve worked on and validate this project’s success on past successes or failures. You can ask yourself the following questions:
Who is the person/team behind this project?
Is there a substantial portfolio I can already access?
How long has the artist been active in the NFT space?
How old is the project I want to invest in?
Do they have a LinkedIn/Twitter/Discord social media channel with more information?
Can I contact the team? If so, can they clearly explain the project roadmap?
What about the art?
There are many different types of art available as NFTs nowadays, from classic art styles like oil paintings or sculptures to the currently immensely popular 10k Profile Picture Projects, which consist of massive collections of profile pictures with a specific theme. Think of the Bored Apes Yacht Club collection, of which the cheapest option goes for approximately $350.000 USD, or Cryptopunks which goes for roughly $170.000 USD.
Ask yourself if the project you want to invest in has the ability to speak to a broad audience and carries a certain unique quality that makes it stand out from currently existing projects. Even though you might not be a fan of the art style, it might just be the next viral project. This sense of “virality” also relies on the business model/roadmap the creators apply to cultivate an audience and grow the community behind the collection. After all, a great part of the value of an NFT project relies on the value that the community behind is willing to give it. A strong community pretty much always means a higher value.
What does the community look like?
Especially in the case of NFT projects, the community says a lot about the project itself. As mentioned above, the community generally forms the ultimate decider regarding the value of the NFT. It’s a good idea to dive into the existing community behind the project to find out their specific role in the project and their impact on the value. Who is part of the community? Are they just here for profitable investments, or to stand behind the values or causes of the project? While money is an important factor in NFT communities, sharing a project’s culture and values is the main decider of its value in the long term.
NFT marketplaces are growing by the day, and these markets are full of copycats and wannabe collections and creators. As someone wanting to invest in a future-proof and valuable project, you have to keep an eye out for creators with their focus on the culture, environment, and community around a collection, rather than the NFTs themselves and the potential profits they can make. The projects that have truly blossomed so far are the project with a cause behind their collection, which can be charity, or the development of an entire Metaverse to bring its community closer together.
Grypto/Jacques Tange NFT project
Together with traditional painter Jacques Tange, Grypto created a unique NFT collection, based on his physical artworks. Not only did we digitize his works, but we also chose some specific work to turn into a unique animation. You can find his NFTs on the Foundation.io marketplace, where we listed his various collections. Curious? Check it out and place a bid!