Article Author – Fracas Digital
In 2022, it seems everyone is NFT crazy. It is estimated that the total value of NFT sales in 2020 was $250 million with the figure only set to increase as more creators and buyers flock to NFT marketplaces looking for the next trending piece. But what actually makes a good NFT? Why do some NFTs get so much hype whilst others fall under the radar? This article by Fracas Digital NFT will consider the factors which go into making NFT collections successful and what to look out for when investing in a new project.
There are basic factors to look for which make testament to the health of an NFT collection: a large following on Twitter, active engagement with online communities, a record of sales within the last few days at high prices or increasing prices, a large number of members of Discord, a strong project roadmap. These are some basic checks which can be done which will give an indication of the following the projects have as well as their popularity.
The founders of the NFT project are integral to what can make an NFT excel or flop. Having a founding group or figurehead leading the NFT project is always a promising sign as they are personally invested in the growth of the collection. Following founders on social media can give insight into their characters and greater awareness of the project which can aid a more informed decision when investing.
Community is a massive part of an NFTs success. Good NFTs usually have a good, healthy community behind them. Think of Bored Apes Yacht Club, they are one of the most successful NFT collections out there and have a huge number of engagement with fans and followers, most of which do not even own or are able to afford one of their NFTs. From this, it is clear that NFTs are more than just creating and owning a piece of art, they are being part of a wider community where there is a created culture and following, all of whom bond over mutual interests.
Community is also a benefit as it is easy then for hype to be recreated around the release of new products and collections. This hype means collections usually sell out within minutes of being released, keeping customers keen and wanting to get their hands on the latest releases.
Community is also a benefit for it ensures the health of a collection. NFTs can be risky business and are often subject to scams, artificial inflation and speculation making it difficult to know who to trust on the NFT marketplace. Having a community following is testament to a trusted and respected NFT collection, making an investment into the collection less of a risk with lower price volatilities. If a project only has a handful of followers, it may be a sign to be a bit wary of whether they are a good investment, however, that being said, if you like their art then why not buy it! Just because it doesn’t have a large following doesn’t necessarily mean its bad art, it is just not as popular yet. Buying a piece you like and will enjoy is never a bad thing.
Despite there existing debate about what makes a “good” NFT in terms of stability, community and popularity, these are all for monetary benefits or security. Ultimately, like all art, anyone can decide what is a good NFT, it just depends on personal preference. This article has aimed to equip the reader with information on how to spit NFTs that are popular, healthy on the rise but, at the end of the day, it is personal opinion which deems an NFT as good art.