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Pay attention to celebrities who have a higher voice in the NFT field, and track the wallets of top NFT investors to find potential projects that lack exposure.
Original title: ” How to not miss the next thousand times NFT project “
Written by: Loopify, NFT investor, crypto artist Compilation: 0x13, Rhythm BlockBeats
Recently, many NFT projects have attracted the attention of countless people with their huge wealth effect. The highest transaction price of a star card in NBA Top Shot is as high as 100,000 US dollars, and the cost price is only 230 US dollars, and the profit rate is hundreds of times; while the NFT new star Hashmasks is even more exaggerated. The initial cost of the NFT is only 0.1ETH in OpenSea. The highest sold price was 420 ETH, and the yield was thousands of times. Many readers have missed these NFT projects that have exploded, and they hope to find the next Thousand Cups of NFT projects. Rhythm BlockBeats translated the articles of Loopify, a well-known NFT investor and encryption artist, to provide readers with reference.
Author’s Note: We need to explain before we start to discuss them. These are just my personal thoughts. You can agree with, oppose or form your own opinions on my thoughts. This article is not intended as investment advice.
How to find the next NFT project that will be a huge success?
How to determine how much room for appreciation a certain NFT project has? I will briefly explain the factors that I will consider when investing in a project.
I have been in the NFT field for more than half a year, and I have seen the prosperity and decline of countless projects. I have missed some successful projects and got into some troubles, but all of these have helped me learn how to choose the next worthwhile NFT project. Before investing in another project, I will ask myself the following or more questions and look for answers:
Who created this project?
When was this project created?
Who has bought the NFT of this project?
How was it born?
These are relatively vague questions, but answering these questions will help you gain more knowledge about the project.
I think there is one thing you should always keep in mind. The NFT space is now in the stage of entering the mainstream vision, and there are now a large number of celebrities and people with great influence who are studying it and joining the NFT field. This means that a large number of projects will be born, especially those made by people you have never heard of. This will cause many safe and legal projects to be covered up and not get the attention they deserve.
Do I know the creator?
If I knew it, then this project would be considered a treasure by me. Whether the NFT in a project can be sold or not depends entirely on the creator of the project. If people trust the creator, they will also trust the project, willing to let the project fulfill its vision. This is critical, and it was what I thought of when I launched my NFT collection project earlier this month. (Rhythmic Note: The original author Loopify launched the NFT collectible project NFTrees at the beginning of this month.)
When was it launched?
You need to understand the market before entering the market, otherwise it is very likely to fall into the trap of dumping. You ask yourself these questions: Is it still in the primary stage or has it reached the secondary stage? Is the project so popular because it is still in its early stages? Will you wait until the market calms down before buying it? These questions will prompt you to think about the long-term development of the project. Although it is necessary to fully research the projects that one has invested in, the timing of entry is also extremely critical.
Who has bought the NFT of this project?
Do you know them in person, or have you heard of them? Answering this question can help you avoid buying worthless things. This is a bit similar to the previous question, you must not want to miss some good projects. Imagine what would happen if a well-known investor already owned more than 20% of the total NFT of a project?
Which chain is this project on?
What you need to understand is that a legal and safe product/service is worth the investment, so you should always do a good job of research, which will keep you away from fraudulent projects and avoid being cut. As mentioned above, we need to understand the creator and the technology behind the project many times. And not every NFT collection item is on the same blockchain. Some will be on the Flow chain, some will be on the Wax chain, and some will be on other chains. You need to know how much control you have over your NFT and whether you can easily access your NFT.
NBA Top Shot is a good example. It is on the Flow blockchain. Many people will charge up to buy card packs, but most of them don’t realize that due to KYC, their funds usually need to wait several weeks before they can be withdrawn.
Can this project develop in the long term?
You can look at the roadmap of the project and what the goals they plan to achieve, and think about whether they can achieve the goal and whether the project party has made any effort.
Let me show you a picture. This picture perfectly shows the different stages that NFT projects usually go through. The author is my good friend Matty. (Rhythmic Note: Matty, also known as DCLBlogger, a famous NFT investor.)
The stages shown in this picture may change over time, but how long a project can last mainly depends on two aspects: incentive mechanism & community.
Creators can provide incentives and bonuses. Whether it is adding a complete model like a game or providing benefits to the holder in some way, the value of the project will continue to increase, such as NFTrees.
The community is used for promotion and does not require any incentives. It does not need to describe the conceived future to people, because its history is enough to attract people to join, such as CryptoPunk.
Case study: Hashmasks
Over the past few months, in the field of NFT, I found that these projects are inextricably linked. The following is a case analysis of the development of Hashmasks from my own perspective.
This project is by far one of the most eye-catching projects in the NFT field. It has a very effective FOMO mechanism. It is also a project I missed. This project is one of my personal favorites, mainly because of its easter eggs, please keep this in mind.
“It is inevitable to miss a project. You cannot participate in every project.”
Hashmasks have many different ways to combine into a mechanism to boost the user’s FOMO emotions, the following is one of them.
There are only 16,384 Hashmasks, and their sales form is to first sell a specific amount of NFT at a price of 0.1ETH, and then the price will increase as the number of sold increases.
People feel that they are about to miss the primary market sales, so they feel that it is better to buy now than to buy from the secondary market in the future. They don’t want to miss it, especially the users in the community are also frantically discussing this project.
Your Hashmask is unknown at the beginning, you don’t know what it looks like, and if you purchase Hashmask, you will receive NCT tokens to change its name. If people buy and sell their NCT tokens in stage 1, their income can be as high as 10 times, and if they are lucky, their Hashmask has some rare attributes, and their income can be as high as hundreds of thousands of dollars. The highest transaction price of Hashmask is as high as 420ETH, so from an economic point of view, Hashmasks is a very good project that can be entered.
In the short term, this is currently the most successful NFT collection project, but we have to consider more factors, such as whether it can maintain its vitality in the long term?
Everyone is mainly to obtain financial benefits in these projects, and the NFT market is not necessarily like Bitcoin and other cryptocurrencies. “Holding” is the rule of the game. If you want long-term development, you need a healthy market. Hashmasks has designed many mechanisms, and they have all been well implemented, which contributed to its success. However, this does not mean that a project that does the same thing will be as successful as Hashmasks.
Each project has its own unique characteristics, and NFT is a new field, Hashmasks hits the key in this field. The Hashmasks community is very active, with many people participating and promoting it spontaneously.
Where can I find these items?
This is a very common question, and as the NFT field gets more and more attention, this question will be asked by more people. Not long ago, the virtual land on Axie Infinity was sold for $1.5 million, and celebrities such as Lindsay Loha, Soulja Boy and even Mark Cuban entered the field. In addition, their mention of NFT will also cause a large number of newcomers to enter this field, and it is expected that NFT will enter the mainstream soon. There are new projects appearing all the time, and wanting to learn about these projects is like discovering IC0 in advance.
You can follow the right people on Twitter, communicate with industry experts in the high-quality Discord community, and even follow famous addresses on the Ethereum browser. For example, I always talk about new projects on my Twitter and share the reasons why I think they might succeed
There is no method or instruction manual that allows you to find “all” the best NFT projects. Every person’s recommendation will carry a certain personal emotion, so if you can’t find a way to get more information, then you are likely to miss some excellent projects. You need to do your own research, DYOR, and share and exchange more with others, lurking in the Clubhouse room, joining the high-quality Discord community, and paying attention to celebrities with a high voice in the NFT field. Many NFTs that lack exposure can pass Pay attention to the wallets of top NFT investors to find, the Ethereum browser can easily track ERC-721 tokens.
Learn to walk your own way and make your own judgment. Finding projects by yourself, and then doing research, you can find a long-term project, or find a short-term project to give you financial freedom, or find something innovative, or whatever you want.