Minting an NFT, or non-fungible token is publishing a unique digital asset on blockchain marketplaces so that it can be bought, sold, and traded to make money.
Although it is now very simple to mint an NFT, there are many traps that are not always obvious.
How should an NFT project be analyzed before the decision of NFT Minting Website Development is made?
Before starting any new project, it is crucial to ask yourself the right questions and develop the protective reflexes you need. The team and roadmap, the community (Discord and Twitter), the scarcity and pricing, the technology, and of course the underlying project should all be taken into consideration (art and utility).
The analysis of the team is an important element to consider. Is the team entirely known (doxxed), somewhat known (anonymous), or none of the above?
However, if the team is anonymous, as some successful projects have been, it’s not surprising to find this in the web 3.0 ecosystem. It is preferable that the team does not remain anonymous, i.e. that we know their names, ages, professional experiences, etc. as you are less likely to be confronted with certain risks (rug, soft rug, project dropouts, etc.).
What do you need to know about the team’s past if they are doxxed? If you are able to assess their relevant historical experience, questions worth asking are: is it connected to the NFTs? Do they have any prior history in the industry? The founders do not need to be well-known, but they should have some legitimate experience.
Can we also evaluate the team’s reputation at this point? For instance, if a member has already been involved in a dubious enterprise then this would be a big red signal. On the other hand, it would be viewed favorably if one of the founders had previously been involved in a successful enterprise.
Even if the roadmap is frequently just a projection of the project’s future, it is nevertheless necessary to look at it. Favoring creative concepts with a practical vision is the best course of action. You should also be aware that the roadmap is rarely followed in practice because its content is determined by a project’s long-term goals rather than by a set structure.
On the other side, you can assess the roadmap’s anticipated practical approach with respect to the project’s financial resources. Is the team capable of carrying out the strategy, and does the whole plan seem logical to you?
An essential component of the research is social network analysis. In the majority of NFT projects, the community component is crucial. We can, however, point to purely aesthetic collections like generative art as an exception, where this process is not necessarily as precise.
Twitter and Discord are the two primary social media channels used by NFT initiatives.
Less than 10,000 followers on Twitter is significant to consider. in excess of 100 000? Be cautious because projects may easily purchase phony fans, thus the quantity of followers on the surface signifies nothing at all.
Checking to check if the account’s follower count and engagement levels match up is a simple way (likes, comments, retweets, etc). Therefore, if the engagement rate seems unusual, this should let you know. The project should ideally not have too many bought followers through prizes and whitelist competitions (WL).
Examining whether reputable collectors are following the project’s account on Twitter is another important factor to take into account. (Take Zeneca, Punk6529, Takao, for instance) Indeed, it is frequently a plus if whales are keeping an eye on the project. That does not necessarily imply that they support the project nevertheless. Simply put, they are interested.
Discord is necessary to use in the NFT ecosystem for minting an NFT. Indeed, the bulk of the projects opens this form of social network to assemble their community. Therefore, the number of members must be examined just like on Twitter. Checking to see if they are genuine is required. The interaction on the posts and the activity of the members can be a useful sign..
It’s also intriguing to compare the numbers of Discord members and followers on Twitter to see if they agree or disagree.
It’s critical to consider whether these followers were acquired organically for both networks. For instance, if you observe invitational competitions for WLs, this could be a negative factor. In fact, there is a higher likelihood that Discord is populated by bots or several users.
Two crucial factors in the analysis are the quantity of NFTs and the mint price. These two bits of information cannot be avoided by a project.
So it makes sense to inquire about the availability of NFTs. 1000 or less? a range of 1000 and 5000? approximately 5000 to 10,000? in excess of 10,000?
A supply shock is more likely to happen if the supply is low. But in order to properly evaluate this criterion, it is crucial to put it in perspective with the project’s interest and the community’s activity. The supply was probably too high if a project offers 10,000 NFTs and receives just 20 likes on Twitter on the day of the NFT sale.
The pricing is an essential factor to consider. Does it match the value or the marketing hoopla surrounding the collection? Does the pricing reflect the state of the market?
By the end of 2021, the cost was not a major consideration. On the other hand, it can start to become so during less upbeat market times.
What blockchains are NFTs based on, including Tezos (XTZ), Solana (SOL), and Ethereum (ETH)? Naturally, Ethereum is the largest and most mature NFT ecosystem (ETH). We might also include Solana and Tezos (XTZ) for generative art (SOL).
NFTs are also present on other blockchains including Flow, Wax, Polygon (Layer 2), and others. However, through a number of marketplaces, Ethereum accounts for 80% of the NFT market volume (OpenSea, LooksRare, etc). This is a factor to consider when you realize that price is mostly determined by volume.
The storage and the way your NFT is generated can affect its value and success. Indeed, your NFT can be on a decentralized blockchain, but if its metadata is stored off-chain then that element of the NFT will not benefit from the security of the blockchain.
The actual generation of the NFT and storage can be centralized, which means you are dependent on a third party to hold the information. This can result in a single point of failure. If the server does not keep your files, the Universal Resource Identifier (URI) of your NFT will just be a dead link.
The endeavor is called Art/Utility of the NFT
NFTs have a wide range of applications. Therefore it’s important to be clear about the NFTs, the project’s purpose, and the marketplace which can enable you to create, and trade NFTs freely. A White Label NFT Marketplace is really a reliable, pre-integrated marketplace that can offer you artistic NFTs.
The NFT’s utility is unimportant if it is a purely artistic endeavor (conducted by a curator like Art Blocks or Quantum, for instance). You must assess the work’s originality, style, and reputation for excellence.
Do you find art appealing? Obviously, this is subjective, but make an effort to pinpoint current NFT trends and investor preferences.
Of course, it is crucial to comprehend the function of the NFT you are about to buy. Indeed, Utility NFTs are much more than just digital collectibles. They grant their owners benefits, prizes, and privileges. There are various different kinds of utilities (not an exhaustive list):
- Social media profile pictures are pictures that are uploaded and serve as an online identity.
- A more effective and open method for artists to commercialize their work is through the arts and music.
- In-Game Assets: Specialized assets created specifically for usage in games.
- Membership: NFTs that allow access to a private community. It’s common practice to use programs like Collab. land and Gnosis Safe to confirm your ownership of the NFT.
- Virtual Worlds: Lands and homes found in the metaverse.
Prior to minting, NFT analysis is not an exact science. Studying the crucial signs mentioned above can help you increase your odds, though. It is crucial to consider the number of warning signs; if there are too many, it is generally preferable to pass.
It goes without saying that rigorous study and analysis can aid in your decision-making. However, your best bet might be experienced.
Suzanne Dieze is a technical content writer and preferably writing technology-based blogs and articles. I have a few published pieces under Mobile Based Applications, and Data science consists of proven techniques, future costs, and benefits.