How I Assess NFT Projects
Here's how I go about identifying potential investments including yet to launch and established projects. My risk assessment strategy.
Hi NFT Community
I hope you’re well and having as much fun as I am in the ever-changing landscape of NFTs.
As I’m sure you all know by now, NFTs are changing the lives of many people much like crypto investing has been doing in recent years. For some who already made coin in the crypto space whether they were early to the Bitcoin party, or rolled the dice on more recent astronomical climes from Dog memes, NFTs have become another opportunity for this community to realize significant gains, and an additional asset to diversify portfolios.
For others, NFTs have been the entry point to the Blockchain and crypto environment and with the more creative visuals front and centre being a little easier for people to connect to, it’s clear to see why NFT culture has taken off in such a big way over a short period.
Either way, NFTs are impacting lives, and for some, it’s been very positive. Now, it’s not all sunshine and rainbows. A lot of people have burned money buying junk too. With such a landgrab opportunity unfolding in front of us you don’t have to look too far to see projects bringing no value and just collecting money from those who are Apeing into every project in the hope of changing their lives.
Not all bad projects are scams or intentionally ripping people off. Some are started with good intentions but the teams just don’t know how to execute well. This means after the initial hype and excitement they don’t continue to keep their community excited and engaged and wind up fading into obscurity. The holders try to sell off the assets they were once excited about, but nobody wants them, and the penny drops that they probably jumped in without doing enough research.
It’s not always easy to identify the big wins early, if it were, we’d all be JPEG millionaires. However, there are some research methods I use to try to limit the risk as much as possible and this is what I want to show you today.
Disclaimer: I am not a financial advisor and none of the content I provide should be considered advice. The thoughts and ideas presented are personal opinions and for entertainment purposes only. You (and only you) are responsible for the financial decisions that you make. The ideas presented here are my opinions at the date of writing and may change in the future.
This article is focused on assets that people want to make money from either with short-term flipping or long-term growth. Let’s take a look at my process when trying to identify potential investments.
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