What makes an NFT successful?

How To Identify Good NFT Projects

Many early NFT investors have become millionaires almost overnight. Back in April 2021, you could mint a Bored Ape Yacht Club (BAYC) NFT for just 0.08 ETH. Less than a year later, the floor price hit a massive 118 ETH, worth over AU$400,000 at the time of writing.

What actually are NFTs? NFTs are digital records stored on a blockchain like Ethereum. They prove ownership of different pieces of digital media, such as art, videos, music, gaming items, and even memes. Anyone can create them, trade them and own them. Read more on NFTs and 13 infamous projects.

Naturally, not every project has seen the same success, which is why it pays to be a discerning NFT investor. In this beginner’s guide to identifying a good NFT project, we cover everything you need to know, from understanding the reason you want to buy an NFT to where you can discover the hottest projects.

1. Why are you buying NFTs?

NFT projects mean different things for different people. The first step in identifying what a good NFT project is, is understanding why you’re buying them. Only then can you find the NFT project that’s right for you. Below we explain a few common reasons for why people buy NFTs.

Make money flipping NFTs

It’s no secret that many people simply want to get rich buying and selling NFTs. In fact, many people have already made millions of dollars flipping NFTs. So if that’s why you’re buying NFTs, make sure you do your own research and find some undervalued projects with excellent growth perspectives.

Artistic merit

Tyler Hobbs and Mike Winkelmann (Beeple) are well-respected artists in their own right. They’ve sold NFTs for tens of millions of dollars and are pioneers in the space. Many investors want to own pieces that have proven artistic merit.

Of course, others are looking to invest in a piece by the ‘next Beeple’. Along with wanting to own a piece of digital art that becomes incredibly valuable one day, they love supporting up and coming digital artists. Notably, there’s a vibrant NFT art scene on the Tezos blockchain.

Learn about NFTs

The best way to learn about NFTs is to dive into the space and buy some for yourself. That way, you’ll be able to practice using crypto wallets, making transactions on the blockchain, and securely storing your NFT.

If you’re just starting out, you don’t want to spend too much money on gas fees. That’s why it’s best for beginners to start on blockchains that have cheaper fees compared to Ethereum, such as Polygon and Solana.

2. Where to find exciting new NFT projects?

So many people are promoting NFT projects at the moment, however, they’re not all created equal. While some will be the next big thing, others will fizzle into oblivion. That means you have to look for trusted sources and hidden gems. It’s not easy, but if you pay attention, you can find an exciting new NFT project that is about to explode.

Trending projects

Which projects have increased their sales volume the most in the past 24 hours? What are the top projects of the past week? Looking at the stats on the biggest NFT marketplace, OpenSea, you can find the top projects of the past 24 hours (or week) to see what’s gaining popularity right now. You can evaluate even more NFT projects on the NFT aggregator website called CryptoSlam.

NFT influencers

There are experts in every industry. For the NFT space, you can find most of them on Crypto Twitter. There are successful entrepreneurs turned NFT investors, leading digital artists, and even pseudonymous NFT personalities with huge followings. By following and engaging with the top people in the space, you can start building your knowledge of the space and you may even come across an exciting new project.

Here are some of the top NFT influencers:

Artchick is a pseudonymous NFT collector that has been instrumental in the success of the World of Women NFT project.
Elliot takes NFTs as seriously as anyone. Known by some as the NFT whisperer, he specialises in NFTs for play-to-earn games and has built sophisticated NFT trading strategies.
Alexis Ohanian is a co-founder of Reddit and was an early investor in the NFT play-to-earn game Axie Infinity. He also focuses on the Polygon NFT ecosystem, which can be a great place for beginners to start thanks to their low fees.
Punk6529 is known for his epic deep-dives and Twitter threads that explore the future of the NFT space. Given that he owns a Crypto Punk, he clearly can spot a trend early.
Kevin Rose founded the successful website Digg and has been a part of the internet start-up scene for a long time. Notably, he sold one of his Fidenza generative art NFTs by Tyler Hobbs for millions of dollars.
Snoop Dogg is infamous in the NFT space, having promoted projects in the metaverse and owning many valuable NFTs himself.

3. How to evaluate NFT projects?

There are many factors that impact the value of NFT projects. Depending on the NFT project, different factors can be more important than others. For example, utility is more important for a sports team’s NFT, while rarity is more important for generative art.

Utility

Utility is the real-world benefits that are added onto an NFT, such as commercial rights to the image, access to exclusive content, and even airdrops. Dynamic NFTs are also popular on blockchain-based games like Axie Infinity, such as giving gamers a power-up or spell.

Rarity

In-demand NFTs with a limited supply earn much higher prices than projects without that scarcity. While all NFTs are one of a kind, they’re often part of a collection of themed NFTs, such as the 10,000 Bored Ape Yacht Club NFTs. This scarcity helps make a project more desirable.

Community

The bigger the community of an NFT project, the easier the project will spread by word of mouth. Celebrities can also be a big boost to the project as they can share the project with their millions of followers.

Floor price

The floor price is the lowest price that any NFTs in a collection are selling for. It’s a positive indicator when the floor price is rising and can be a concern if it’s falling quickly.

Volume

The volume of NFTs traded in a collection is a good indicator of the demand for the project. You can check the volume of a particular project compared to other projects, and also see whether the volume has been trending up or down over time.

Estimated market cap

The estimated market cap is a key metric that many NFT investors use to identify whether a project is overvalued or undervalued. You can find the estimated market cap of hundreds of projects on the Rarity website.

Team

Do the founder and team have a proven track record? It’s a positive sign that they are well known in the industry as builders who create valuable projects. While some investors like the real names and faces of the people behind the project, others are comfortable with a completely pseudonymous team.

Roadmap

Are there any upcoming partnerships, business opportunities, or project developments? While some NFT projects like Crypto Punks and Ether Rocks are simply collectibles, others are building metaverse worlds where the NFTs can be used or are adding real-world utility in other ways.

Learn more about NFTs and explore the top projects

Now that you know how to identify good projects, you can start looking for trending projects from NFT influencers and on NFT marketplaces. To learn more about the space, check out some of the top NFT projects that we cover in our introductory NFT article. You’ll find insights on Crypto Punks, World of Women, CryptoKitties and more. As always, at Cointree, we’re here to help you grow.

5 NFT Tips for Launching Your Next Collection Successfully

As NFTs (Non-fungible Tokens) continue to grow in popularity, many web3 developers, growth marketers, and entrepreneurs are eager to test the waters.

But what exactly does it take to create a successful NFT project long-term? This article will cover some of the tried and true tips to help set you up for success.

1. Your NFT Community Comes First

Your community is what will ultimately determine the success of your NFT project. Whether you’re an indie artist trying to make money selling NFTs or a web2 brand looking to experience the NFT space first-hand, your collectors should be the top priority.

Creating a strong community is easier said than done. Here are a few NFT tips to get started.

Get started building a community now.

Whether that’s growing your brand, setting up a Discord and Telegram, or engaging with your potential buyers regularly, start now.

There will never be the perfect time to launch your community.

The more effort you put into brand-building now, the better chances you have of selling a successful NFT project and building a loyal following for the long term.

Invest time into where your audience spends time.

You don’t have to be on every social media platform, have a perfect website, or create a viral YouTube channel to sell out NFT collections.

NFT Community Building Tips

Find where quality investors spend their time, and make an investment in their channels.
Connect with NFT buyers and crypto enthusiasts
Buy and support original, 1/1 NFT art.
Join Twitter spaces to share your idea

While Discord is one of the more popular platforms for those interested in crypto and NFTs, Twitter, TikTok, and Telegram can also be worth your while..

Partner with reputable influencers and companies.

Many NFT projects fall into the trap of hiring ‘big name’ blockchain influencers, celebrities, or social media personalities to promote their story.

Unfortunately, this doesn’t always go according to plan.

It’s essential to partner with reputable crypto social media influencers and companies with a history of integrity and aren’t known for supporting scams.

Don’t let a «big name» hurt your project’s reputation. Choose partners that believe in your project and the NFT space as a whole.

Do your research and only work with individuals you trust.

Use these NFT marketing tips before your collection drops.

Don’t wait until the week before launch to hype up your launch — it’s critical to start sharing your NFT collection as soon as you can.

Create a social media campaign
Share the long-term vision
Publish teasers of the art
Run whitelist competitions
Create games that encourage participation

Unless you’re launching a stealth NFT collection where you intentionally aren’t marketing it, dropping a new NFT collection should never be a surprise.

2. Price Your NFT Project Fairly

One of the most important parts of building a successful NFT project is setting your initial NFT mint price correctly. If you charge too high of a mint price upfront, you risk losing your momentum, not selling out your collection, and losing the support of your collectors.

In addition to setting a fair price, it’s also important to set a fair royalty on all secondary NFT sales. If you set a high royalty, holders will not be able to capture as much value from the community they helped build which may deter them from minting your NFT.

NFT Pricing Tips

Here are a few practical tips for setting an appropriate price on your NFT:

Spend time talking to your community about what is a fair price.
Take into account your vision and ability to deliver value long term.
Research the top NFT projects on sites like Nonfungible.com or Dune Analytics.
Generally, 0.05 — 0.1 ETH is where most successful NFT projects set their mint price
Set your price to invite many supporters to participate (don’t make it too expensive)
Initial mint sales are not the only way to earn money from NFTs — secondary sales on NFT marketplaces like OpenSea can drive long-term revenue through NFT royalties

Successful NFT Pricing Example: Smol Brains

Some projects like Smol Brains even went the «free mint» route, and having their collectors just cover the cost to deploy an NFT. knowing that the value they create over time would allow them to build a sustainable venture and earn money off secondary sales.

Remember, it’s not about how you start; it’s about what value you can create over time.

3. Plan a Quality NFT Roadmap

While a successful NFT launch is exciting, it’s only the first step to creating a project that withstands the volatile nature of NFT markets and people simply flipping NFTs to make money.

When done right, most of your revenue will come from NFT royalty payments from secondary sales, making it crucial to continue adding value to your collection after mint.

While there are pros and cons of creating a DAO, NFT collections can consider creating a DAO where holders can participate, promote, and push the NFT project’s direction forward.

Additionally, thinking of ways to add more value to the people investing in your NFT can further increase enthusiasm.

Examples of NFTs that Increase Value with Strong Roadmaps

One of the clearest examples of NFT projects that continue to expand their roadmap to drive value back to their holders is Bored Ape Yacht Club (BAYC).

BAYC famously airdropped serums to create mutants, dramatically increasing interest in, and many BAYC holders were able to sell their mutant for much more than the cost of the initial mint.

Now, with the launch of $APE Coin, the purchase of CryptoPunks and Meebits, and a new roadmap, it’s clear the BAYC team is focused on creating long-term value for their holders.

While you might not have everything figured out initially, listening to your community and continuing to test new ideas to drive value accrual will set your NFT up for long-term success.

4. Communicate Effectively and Often

Don’t let the simplicity of this NFT tip fool you; regular communication from your core team of contributors can quite literally make or break your project.

With so many «rug pulls,» keeping your community up-to-date with popular crypto communication tools like Discord and Telegram is important.

The worst thing you can do to derail momentum is go radio silent after launch.

NFT Project Communication Tips

Here are some quick tips to improve the communication for your NFT collectors:

Commit to a regular communication schedule and do your best to stick to it.
Invest in hiring someone on your team to support your community.
Create educational resources to help your holders know what is going on.
Have moderators online to answer questions.
Regularly post in the #announcements channel and tag @everyone.
Stay ahead of urgent communications (e.g. roadmap setbacks, hacks, etc.)

Posting updates multiple times per week, troubleshooting holder support requests, and being online to engage your holders sends strong signals your project is not a scam and your team is focused on positive sum value accrual.

Parallel: A Successful NFT Project that Communicates with Holders

The sci-fi card game Parallel does an excellent job setting a good example by holding weekly community calls where anyone can attend and ask questions. It’s one of the many reasons they have been able to build such a loyal fan base quickly.

5. Invest in Your NFT Code

Because bad actors are rampant in crypto and NFTs in general, it’s critical that when you’re creating an NFT to ensure your code is well-written to protect your users from potential exploits.

Whether you have an in-house dev or are outsourcing your NFT contract work, it’s important to invest in the best web3 developer talent that you can afford or find through networking.

While common NFT smart contracts used by many teams in the industry like the ERC721 and ERC721A help mitigate risks, exploits are always a possibility.

Because exploits can be disastrous for the overall success of NFT projects, if you have the capacity to hire a smart contract auditing firm, it may be good to have your contracts reviewed.,

Don’t let your enthusiasm to launch cause you to skip the most basic of security precautions. It makes a difference.

Use these NFT Tips to Make your Launch a Success

With some $41 billion worth of crypto spent on NFT marketplaces in 2021, it’s an incredibly exciting time in the world of Non-fungible tokens.

To make your NFT launch a success it’s crucial to put in the work. Use this list of tips to ensure success for your mint and the long-term value creation for your holders.

What makes an NFT successful?

NFTs have opened a whole new set of opportunities for businesses and creators. It allows proof of ownership for digital things, like art or music. Digital designers can sell unique pieces of art online and brands can use it to sell branded virtual merchandise.

Key Takeaways

An NFT is a unique token on the blockchain. Like other blockchain technology, these digital items that cannot be changed or destroyed, but unlike other blocks, NFTs are each original. This is different from the world of cryptocurrency where one Bitcoin is equal in value to any other Bitcoin. Each NFT represents something with a unique value.

Now is the ideal time for any small business to get involved in NFTs. If you haven’t already, it’s time to consider launching your own NFTs. The market is growing at an incredible rate—with it exceeding $40 billion in trading in 2021—but there’s still room to get in on the ground floor.

The basics of an NFT project

There are five components that make up an NFT project.

Let’s talk about art first, In the case of NFTs, most are a form or digital art like an image, meme, or video clip, though we have digital artists like Beeple who sold his artwork as an NFT for $69 Million at Christie’s, More commonly an NFT is a 2-D still image which people can use as a profile picture, most widely known projects have been based around this idea. One of the most well-known is the Bored Ape Yacht Club (BAYC) who launched a collection of 10,000 unique profile pictures. These apes are owned by notable celebrities such as Eminem and Jimmy Fallon and their floor price is currently sitting at 107 ETH ($323K).

Alongside the art, most successful NFT projects will offer utility to their holders.

This could be an airdrop of tokens, or a VIP membership pass to a real-world event. Veefriends created by Garyvee, for instance, offer their holders access to Veecon, a real-life conference that is exclusive for NFT holders.

The roadmap is what an NFT project is promising to accomplish in the future. It is the long-term vision of the project. This can vary greatly from project to project and can be as simple or complex as you like.

Every NFT project needs a founder and a team. The types of roles you might find in an NFT project are artists, developers, community mods and marketers.

The last things most successful NFT projects have are some types of partnership. These are partnerships with other NFT projects, brands, or influencers. In the BAYC example above, brands like Adidas have collaborated with the founders to create their own NFT collection.

What does it mean to have a successful NFT project?

Most people will immediately correlate floor price with the success of a project. They might assume that higher the floor price, the more successful the project will be. Although floor price is one of the most relevant metrics that determines success, it’s not the single most determining factor.

For example, Pixelmon was one of the most anticipated NFT projects of early 2022. The secondary market was trading at around 2 ETH, which most people would consider a high floor price. However. The company held a Dutch auction starting at 3 ETH and sold the entire collection at 3 ETH a piece, raising over $70 million dollars.

Since the initial mint, the floor price has crashed by over 90% and most investors have lost money from this project. Although Pixelmon initially had a high floor price, they would not be considered a successful project.

The real indicators of success

The first key element of a successful NFT project is the project’s ability to create demand regardless of the current market conditions. Selling out a collection is easy when the market is hyped, but it’s extremely hard to maintain the same demand when the market becomes bearish—which can happen at any moment in the NFT space.

Volume is a good indicator for knowing when the market is turning bearish. The Opensea monthly volume chart indicated that an all-time high volume was reached in January of 2022 and since then, the volume has been trending down steadily and gradually entering a bear market.

Projects that can survive this will come out at the other end and become a blue-chip NFT—like Apple, Amazon, and Berkshire Hathaway, these projects will become too big to fail and will likely continue to appreciate in the future. In the NFT world, projects like BAYC, World of Women, and Veefriend are already approaching this level of success.

Continued demand during a market downturn shows not only investors have faith in the project, but that utility is enticing enough for people to continue buying into the project.

The people behind the project

The second key element of a successful project is the founder or team behind the project. The importance is not whether or not the founder is doxxed—no one actually knew the team behind BAYC until Buzzfeed leaked the public identities of the founders. What matters the most is the team’s or the founder’s ability to deliver what they promise to do on their roadmap. In the BAYC example, they have delivered their holders tremendous value (airdropping 6 figures worth of $APE token).

It’s important that the founder doesn’t over-promise and underdeliver. Projects that fail to deliver things on time, change their roadmap constantly, or find excuses not to follow through the roadmap show a lack of conviction in the project. Beware of projects that lean on buzzwords like metaverse, staking, P2E, gaming, utility driven, or community focused in their roadmap. Just because they put gaming NFT on their roadmap, doesn’t mean they have a working game. Avoid opportunists who try to cash out on a trend.

Making waves

The third and last element of a successful NFT project is innovation. The NFT market is constantly evolving—what’s popular last month will become outdated this month. Investors in the NFT market get bored of things quickly. Projects that offer unique things will win out against the competition.

Cryptopunk became popular because it was the first PFP collection. The gorilla themed NFT CyberKongz attracted a cult following because it was the first project that integrated a staking mechanism and awarded their holders daily tokens $BANANA. Wolf game has a unique and simple P2E game, and worldwide webb is the first metaverse NFT that allows users to use their NFTs as avatars in their game.

Innovation is key in this space. People are constantly looking for the next trend. Successful NFT projects are not the ones who follow trends, but rather establish them.

Nice to haves

Many successful NFT projects know how to attract new buyers by tapping into other ecosystems that already exist in the market and that already have a following. By partnering with other NFT projects, brands, and influencers, a new NFT can immediately enter the marketplace to awaiting customers.

Though partnerships are not crucial to an NFT project’s success, they can be extremely valuable. They can help build a strong ecosystem where there is constant demand on the secondary market.

In the same vein, the holders of an NFT can also make an impact on the project’s success. A project full of short-term traders is doomed to fail. Ask yourself the following: who are the holders and what they are trying to accomplish with the NFTs they are holding. Are they traders who want to make a quick profit? Or are they diamond hands who will hold onto their NFTs long-term?

The future of NFTs

The NFT market is on the rise, but this space still has a long way to go. The market is still at its early stage and most people still trade purely based on narratives and hype. We haven’t seen the Uber of NFTs yet, which is exactly why now is the best time to get involved in this space. Your NFT project might be the big one everyone’s been waiting for.