Today, we’re going to look at the different types of projects you should consider when thinking about investing in a new blockchain technology. In this post, we’ll explore the best-suited projects and what makes them tick. It’s not easy to recognize fraudulent NFT projects before they hit the market. There are numerous factors to consider. But, before we go any further, if you’re searching for a project to make money rapidly, you should look for ideas that have real-world utility. This is occasionally accomplished through free bonuses, but the most popular NFTs right now are those associated with play-to-earn games, utility, and tokenomics.
Where do we look for such projects? How to spot good NFT projects? What to think about and what to look for Let’s have a look at how to locate good NFT projects.
Read also: Where Should I Store My NFTs?
Check to see if the community is genuine and active.
Before investing in any project, spend a significant amount of time connecting with the NFT community to establish its strength and significance. Joining the project’s Telegram and Discord channels, for example, is a good way to see if the community is active. A healthy NFT project will always have a thriving community, indicating a larger collector base. Furthermore, participating in active community channels will provide you with a greater understanding of the project’s operations, allowing you to decide whether it’s worth a try.
Do the Project’s Founders Have a Good Track Record?
Investing in an NFT initiative entails doing business with the people who make it happen. NFTs, unlike typical cryptocurrencies, are traceable. However, you cannot invest in a project whose authors are not public figures or who employ pseudonyms. Otherwise, you’ll be squandering your hard-earned cash on con organizers.
It’s also a good idea for users to double-check the founders’ reputation by looking at their previous work. A good NFT project’s founders frequently work in groups and have likely worked on previous initiatives. Investigate these initiatives to see how successful they are. Do you have a large fan base from past projects? Do they still have a good name in the industry?
Most crucially, back founders who can execute, even if they’ve made a fortune in past ventures. Remember that you’re putting your money into people who are responsible for the project’s success. You can rely on them to keep things running smoothly in the face of market volatility.
Your passion should be reflected in the brand.
One of the secrets to NFT investment is to put money into a project that piques your interest rather than on speculative financial speculations. NFTs have inherent value, which means they can appreciate or depreciate at any time depending on market conditions. An NFT project’s underlying technology, smart contract, or success story may pique your curiosity.
Even if its value decreases, a project that piques your attention will stay relevant to you for years to come. Take, for example, a collection that grants you exclusive access to an NFT club. It’s a piece you’ll be proud to show off on virtual platforms in the future.
Utility
A decent NFT project should contain a platform that allows you to do more than just collect data. Purchasing a specific item, for example, should get you exclusive admission to a specific NFT club. Consider NFT communities to be similar to high-end boat or Lamborghini owners groups. It carries with it a higher social standing and respect.
Staking and early access to Web3 technology, as well as other virtual and physical industry events, are other levels of value that indicate a solid NFT initiative.
Read also: How to Add Utility to an NFT; Be Part of the Billion dollar Market
Innovation Capacity
A strong NFT project should stand out by incorporating cutting-edge features into its platform. In an ideal world, the NFT industry would be driven by innovation. A project that imitates existing platforms in terms of usability and user experience does not appear to be worth your time or money. Do you think the founders can sustain the industry’s revolution for long-term gains if they can’t think of a new degree of innovation? Obviously not.
Automated smart contracts to improve user experience are one of the improvements to look for in an NFT project. To avoid being taken advantage of by scammers, you should look for a project that incorporates a high-tech creator identification and verification process.
Date of Publication and Cost
Collectors can assess whether NFTs are worth their time and money for a long-term investment by looking at the release date and time. Check this data to learn how many NFTs a project will release over time and how many people are rallying behind it.
In addition, find out what types of rare and precious NFTs are used in a project that is low-cost but has the potential to increase market value in the future. A project that does not make its release date and pricing public is likely to be suspect. It isn’t worth your time or money, regardless of how lucrative the creators and community make it appear. To deceive you, we have initiatives that use bot social media accounts to establish a big fictitious following. Be aware of NFT projects like these.
Where to Find Good NFT Projects?
1. Check out Twitter.
One of the most successful sites for identifying promising NFTs in the early phases is Twitter. The NFT community is very active on Twitter, with many well-known purchasers and influencers discussing various projects.
2. Participate in Discord.
Another wonderful platform for identifying emerging NFT ideas with serious potential is Discord. Almost every big creator or project has a Discord Server, and the level of interaction varies based on the popularity of the project.
3. Make Use of Nansen.ai’s Power
Nansen.ai is a good place to start if you want to learn more about popular or hyped projects. Nansen is a data aggregator that collects buyer data from OpenSea and presents it to its audience in a variety of ways.
This makes it simple for the typical customer to see what other people are buying and which NFT collections are selling for the most money. Nansen can also show you what the large collectors are holding or purchasing.
If you have a Nansen subscription, you can also create alerts to receive notifications anytime a certain wallet purchases a collection. For those serious about getting into the NFT game, it’s a really user-friendly application.
4. Take a look at the project’s road map.
Checking the roadmap of an NFT collection is one of the greatest ways to see if it’s any good. This is a key aspect of each new NFT project that goes live, as it displays all critical dates, such as airdrops, new events, and the creator’s collection plans.
The BAYC roadmap, for example, included dates for events such as their Annual ApeFest, the launch of a new game and new models, as well as major milestones. Collaborations and partnerships are also listed by other NFT producers, giving you an idea of the project’s duration.
5. Take a look at RyzeNFT.
RyzeNFT is a Ryzen Labs premium product for swiftly identifying NFTs that are considerably undervalued. It offers an excellent Chrome extension that allows you to see rarity rankings for certain NFTs on marketplaces like OpenSea in a matter of seconds.
RyzeNFT also features a sniping feature, which allows you to set a maximum price for undervalued NFTs as soon as they are minted and go online. Ryze is pricey, costing 1.35 ETH, but because it is marketed as an NFT, you can resale it whenever you want.
6. Keep an eye on OpenSea for new activity.
OpenSea includes a nice activity page where you can keep track of new and popular collections. You can use this tool to keep track on what’s going on on the platform. This tool, unlike others, is completely free to use.
This application allows you to manually track activity, such as statistics or trade activity. This will give you a better understanding of how popular a certain NFT collection is and whether it’s worth investing in.
You should absolutely use this tool to measure demand across the NFT community. Not only can you see which collections create the most trade volume, but you can also see which whales are scooping up whole collections.
7. Examine Icy Tools
Icy Tools is another wonderful tool for tracking trends and identifying patterns in the NFT market. It uses real-time data to provide minute-by-minute activity updates.
There is also a free plan available, which should be sufficient for most customers. It provides hourly updates as well as the ability to review daily patterns. You may also track wallets and receive detailed notifications every time a new NFT is coined, as well as view trends in 15- and 30-minute intervals, if you subscribe.
Many consumers are apprehensive to invest in a paid tool subscription. You may use OpenSea’s free tools if you have an account, but if you’re serious about locating undervalued NFT projects, such tools are a must.
Many consumers are apprehensive to invest in a paid tool subscription. You may use OpenSea’s free tools if you have an account, but if you’re serious about locating undervalued NFT projects, such tools are a good investment.
How to Spot Fake NFT Projects Before Mint
Stay vigilant and recognize phony customer service or technical support if you want to learn how to spot fake NFT projects. They can lure you into accepting their offerings, resulting in a loss.
Are there more NFT scams happening right now than ever before now?
In terms of the number of scams, We think it’s hard to answer, but in terms of the amount of money that scammers are extracting from the marketplace, We think the answer is 100%, yes.
Discord Fake Technical Support
If you have a technical difficulty, do not rely on phony technical support supplied by scammers posing as OpenSea employees on Discord. They may ask you to show them your screen so that they can take screenshots of your speed phrase or QR code and record your crypto credentials by visiting your wallet and taking screenshots of your crypto credentials. Furthermore, they may urge you to click a link that takes you to a false OpenSea page where they can trick you into entering your credentials.
Scammers can impersonate MetaMask and send you phony security alert emails. They emotionally manipulate you by threatening to suspend your MetaMask wallet due to security concerns. They’ll also make you click on a hidden link in the email to authenticate your account and get your money back. Phishing can also lead you to a bogus MetaMask wallet website. If you enter your information on a false website, it will be hard to restore your account because it is backed by decentralized technology.
Offers that are not genuine
Scammers can spoof well-known NFT trading platforms by sending consumers bogus emails saying that someone wants to buy their NFT and requesting that you click on a hidden button. This practice is known as phishing, and it involves redirecting consumers to a bogus page that asks them to link their wallet and provide their seed phrase/recovery phrase. Scammers can use this method to record your information and steal your belongings.
Scams with rug pulls
Rug-pulling frauds are common in phony NFT initiatives. The Squid campaign, for example, offered digital tokens for the top-rated Netflix series Squid Game. When the prices went up, there was a scam since the NFTs couldn’t be resold, thus they couldn’t circulate. Other instances include romance scammers who lure victims into phony enterprises and ask them to invest their money.
Fake Freebies
Scammers can trick you into participating in their phony giveaway programs by impersonating staff of well-known NFT trading platforms. They will contact you over social media platforms such as Discord or Telegram and request that you sign up or link your MetaMask wallet in order to steal your credentials.
How to Recognize Fake NFT on Opensea?
It is not only the largest NFT marketplace, but it is also an open marketplace where scammers may easily construct and list bogus collections in order to defraud investors. Consider and attempt the following techniques to avoid being scammed on OpenSea.
1. Purchase from Authenticated Collections
Invest in NFTs only from verified collections that have been approved by OpenSea. You’ll be less likely to be conned this way. Find the ‘Verified’ badge in rankings, search results, and on the pages where they are listed to see if they are verified. You can also check the confirmation while hovering.
2. Purchase from Authors Who Have Been Verified
You should examine the verification of authors on the OpenSea marketplace in addition to checking collections. The platform evaluates creators to assure users of its legitimacy. For example, CypherCHK’s Encryptas collection is yet to be confirmed, likely due to a lack of sales volume, despite the fact that the creator has been validated. Always keep an eye out for certified creators and verified collections.
3. Directly from a Reliable Source, Follow OpenSea Links
Instead of browsing the NFT collections on OpenSea to see if the project is trustworthy, go to the site supplied by the founders. To locate the links, go to the project’s website or the developers’ Discord server, which has a channel called “official links” where the projects are uploaded.
Conclusion
The recent wave of scams in the NFT space has made a lot of people conscious and indecisive regarding their NFT purchases. The losses have not only affected the victims but have also made a distinctive impact on new investors who want to purchase NFTs. If you want to escape such scams and invest safely then we hope this article has been helpful for viewers to know how to spot fake NFT projects before mint.
