NFT market is starting to heat up once more, with dozens of markets seeing the debut of hundreds of new projects every day. However, there are a lot of fraudulent projects out there that cost investors or NFT collectors a lot of money. CoinCu will provide you with the factors to evaluate an NFT project today as a result.
An NFT player named DegenDaVinci has accumulated an NFT collection from the platforms Ethereum and Solana valued at tens of millions of dollars.
“I had never even heard of NFT a year ago, but today my portfolio is worth tens of millions of dollars. Large but extremely reliable investments have yielded me enormous income. I purchased Punk for 7 ETH, which is equivalent to $21,000 (current floor price is 63 ETH, or roughly $190,000), SMB (Solana Monkey Business) for 50 SOL, which is equivalent to $20,000 (current floor price), and Degods for 7 SOL, which is equivalent to 184 SOL at the moment (18 thousand dollars).”
Here are 11 factors to evaluate a NFT, which I developed after studying for more than 5000 hours, might make you wealthy.
1. Art
The public interest is the sole feature that can stand on its own and produce horrible profits for owners; all other features merely support it. Feedback, public opinion, or “social signaling” refers to a combination of identity, community, and flexibility. Without a community, you would never be able to display what you have. And without a distinct, recognizable identity, there can be no community. And without a design, without a fantastic, exceptional piece of art, it is hard to create a distinctive, engaging identity.
Here are the factors that made me take 1 shape as a PFP (Picture Profile):
- Clean/Simple Art
- Clean Background
- Distinguishable from other collections
- Aspirational Art (Lions/apes/gods better than rats, lizards, etc.)
- Brandable IP
- Does it look good on Twitter?
- Would I feel proud to display this myself?
2. Size Matter
A large NFT collection will outperform a small collection. Due to the numerous owners, there will be a significant network effect with a sizable nft collection. Due to a significant network effect, there will be a high demand for uncommon nfts, and you will gain more if you share them on social media. We can take on projects with 10,000 NFTs on Ethereum and continue to rule for a very long time. Additionally, when the nft market’s overall capacity increases, successful 20,000 NFT collections may also be observed. On Solana, collectibles with a very little quantity of total nft used to predominate, but now we are now beginning to see NFT collections with an amount nearly equivalent to ETH, and the over 10,000 nft is beginning to perform extremely well.
In general, the size of the collections will continue to increase as the NFT industry expands. It became a good idea to develop into Gen 2, or even Gen 3, as an airdrop or collection because there is a limit on the part of artists for large collections (typical examples include WOWG – World of Women Galaxy, which was developed from World of Women, or MAYC – Mutant Ape Yacht Club, which was developed from Bored Ape Yacht Club).
3. PFP Usage
The most effective marketing technique for NFT collections, people frequently exhibit items as avatars to demonstrate pride and confidence. You may determine for yourself how many individuals are utilizing NFT as avatars using the website nftinspect.xyz, and you can even connect with them on social media.
4. Holder Statistics
DegenDaVinci believes that in order to assess the potential of NFT, we should look for and consider the following indicators.
5. Innovation
Any new endeavor needs a fundamental transformation in order to succeed. On the Ethereum network, 400 projects are launched every day, and Solana sees hundreds of new initiatives. Those in the forefront of something new frequently profit from it, what appeared fair yesterday may no longer be relevant today.
Whether a project focuses on art or usefulness, it always has a unique invention (application, utility). For instance, Punk created itself; it is a brand-new NFT subgenre that has already produced Celopunk, Aurorapunk, and Nearpunk. It also applies to BAYC (Bored Ape Yacht Club). social groups, airdrops, adding MAYC Doodles to the collection, opening the door to Carbon Art, and Azuki – a collection of excellent Anime graphics.
- @worldofwomennft – The NFT project is led by an all-female team
- @MonkeDao – Leading the way in creating Community DAO
The creation of products that rival or build upon initial initiatives is quite challenging. Much of the value of NFT is driven and quantified by signals and social acknowledgment.
6. Provenance
Provenance is one thing that does not face execution risk. With an unchanging foundation, Punks will always remain the NFT collection at the top of its field. It is the project that inspires other initiatives with a similar focus.
7. Utility
The utility can be tricky to evaluate. Buzzwords are cheap and easy, like Play to Earn, Metaverse, or Staking out a token without even knowing if you use it or not!
- Upgradeable Art
- Staking
- Gen 2 NFTs
- Airdrops
- Integrations
- Gated discord
- Merch, live events etc
Only if the aforementioned can generate interest in and value for the NFT collection can it be used. Check to see if the app’s name can be branded or if it will be detrimental to the project itself.
8. Team
We think that @Deezefi has much more at risk than a random person with 5 Twitter followers but a real name and LinkedIn. Consider how much rep the team stands to lose by rugging and assume the worst. Review each choice the project team has taken so far, including:
- Is the art good?
- Did they choose the right collection size?
- Are they doing anything innovative?
- Did the drop go smoothly?
- Has communication been good?
- Is their vision fundamentally strong?
9. Community
This is crucial but also hard to objectively measure, so it’s over-rated by most. The quality of the community may deteriorate with time. The Builder/Moonboi ratio, or the ratio between those who genuinely believe in the project and want it to thrive and those who are constantly “to the best,” can, however, be an indicator of the finest community. When a project is coming along, “Moon” is highly enthusiastic, but when the project isn’t going well, he’s also prepared to rip the team apart and curse them.
10. Price Action
We should pay attention to the projects that have survived a prolonged bear market and are beginning to gain momentum in price, volume, and PFP usage. If the team and community have stuck it out multiple times, they have a higher chance to stick around for the next one.
11. Aligned Incentives
- What is the mint price?
- What % of mint and royalties are going to a community wallet? The royalty fee may be excellent for the project’s growth, but it also loses its value if the floor price and trading volume fall. The challenge of encouraging teams to commit to long-term work while discouraging short-term commitments has always existed in the NFT sector. I have several solutions for this.
- Low mint price or lock mint revenue in a wallet that gets released on performance goals.
- Team mints part of the collection themselves with an unlock schedule.
Verdict
The NFT market recently began to heat up once more after a number of recently announced projects with strong price rises. In addition, the above data indicate that there is a lot of good news and that awareness of NFT is growing. Crypto winter has arrived, it’s also time to purge projects. Good projects stay and bad projects go. Everything is just beginning.
If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.
DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.
Ares
Coincu Ventures
Author
NFT market is starting to heat up once more, with dozens of markets seeing the debut of hundreds of new projects every day. However, there are a lot of fraudulent projects out there that cost investors or NFT collectors a lot of money. CoinCu will provide you with the factors to evaluate an NFT project today as a result.
An NFT player named DegenDaVinci has accumulated an NFT collection from the platforms Ethereum and Solana valued at tens of millions of dollars.
“I had never even heard of NFT a year ago, but today my portfolio is worth tens of millions of dollars. Large but extremely reliable investments have yielded me enormous income. I purchased Punk for 7 ETH, which is equivalent to $21,000 (current floor price is 63 ETH, or roughly $190,000), SMB (Solana Monkey Business) for 50 SOL, which is equivalent to $20,000 (current floor price), and Degods for 7 SOL, which is equivalent to 184 SOL at the moment (18 thousand dollars).”
Here are 11 factors to evaluate a NFT, which I developed after studying for more than 5000 hours, might make you wealthy.
1. Art
The public interest is the sole feature that can stand on its own and produce horrible profits for owners; all other features merely support it. Feedback, public opinion, or “social signaling” refers to a combination of identity, community, and flexibility. Without a community, you would never be able to display what you have. And without a distinct, recognizable identity, there can be no community. And without a design, without a fantastic, exceptional piece of art, it is hard to create a distinctive, engaging identity.
Here are the factors that made me take 1 shape as a PFP (Picture Profile):
- Clean/Simple Art
- Clean Background
- Distinguishable from other collections
- Aspirational Art (Lions/apes/gods better than rats, lizards, etc.)
- Brandable IP
- Does it look good on Twitter?
- Would I feel proud to display this myself?
2. Size Matter
A large NFT collection will outperform a small collection. Due to the numerous owners, there will be a significant network effect with a sizable nft collection. Due to a significant network effect, there will be a high demand for uncommon nfts, and you will gain more if you share them on social media. We can take on projects with 10,000 NFTs on Ethereum and continue to rule for a very long time. Additionally, when the nft market’s overall capacity increases, successful 20,000 NFT collections may also be observed. On Solana, collectibles with a very little quantity of total nft used to predominate, but now we are now beginning to see NFT collections with an amount nearly equivalent to ETH, and the over 10,000 nft is beginning to perform extremely well.
In general, the size of the collections will continue to increase as the NFT industry expands. It became a good idea to develop into Gen 2, or even Gen 3, as an airdrop or collection because there is a limit on the part of artists for large collections (typical examples include WOWG – World of Women Galaxy, which was developed from World of Women, or MAYC – Mutant Ape Yacht Club, which was developed from Bored Ape Yacht Club).
3. PFP Usage
The most effective marketing technique for NFT collections, people frequently exhibit items as avatars to demonstrate pride and confidence. You may determine for yourself how many individuals are utilizing NFT as avatars using the website nftinspect.xyz, and you can even connect with them on social media.
4. Holder Statistics
DegenDaVinci believes that in order to assess the potential of NFT, we should look for and consider the following indicators.
5. Innovation
Any new endeavor needs a fundamental transformation in order to succeed. On the Ethereum network, 400 projects are launched every day, and Solana sees hundreds of new initiatives. Those in the forefront of something new frequently profit from it, what appeared fair yesterday may no longer be relevant today.
Whether a project focuses on art or usefulness, it always has a unique invention (application, utility). For instance, Punk created itself; it is a brand-new NFT subgenre that has already produced Celopunk, Aurorapunk, and Nearpunk. It also applies to BAYC (Bored Ape Yacht Club). social groups, airdrops, adding MAYC Doodles to the collection, opening the door to Carbon Art, and Azuki – a collection of excellent Anime graphics.
- @worldofwomennft – The NFT project is led by an all-female team
- @MonkeDao – Leading the way in creating Community DAO
The creation of products that rival or build upon initial initiatives is quite challenging. Much of the value of NFT is driven and quantified by signals and social acknowledgment.
6. Provenance
Provenance is one thing that does not face execution risk. With an unchanging foundation, Punks will always remain the NFT collection at the top of its field. It is the project that inspires other initiatives with a similar focus.
7. Utility
The utility can be tricky to evaluate. Buzzwords are cheap and easy, like Play to Earn, Metaverse, or Staking out a token without even knowing if you use it or not!
- Upgradeable Art
- Staking
- Gen 2 NFTs
- Airdrops
- Integrations
- Gated discord
- Merch, live events etc
Only if the aforementioned can generate interest in and value for the NFT collection can it be used. Check to see if the app’s name can be branded or if it will be detrimental to the project itself.
8. Team
We think that @Deezefi has much more at risk than a random person with 5 Twitter followers but a real name and LinkedIn. Consider how much rep the team stands to lose by rugging and assume the worst. Review each choice the project team has taken so far, including:
- Is the art good?
- Did they choose the right collection size?
- Are they doing anything innovative?
- Did the drop go smoothly?
- Has communication been good?
- Is their vision fundamentally strong?
9. Community
This is crucial but also hard to objectively measure, so it’s over-rated by most. The quality of the community may deteriorate with time. The Builder/Moonboi ratio, or the ratio between those who genuinely believe in the project and want it to thrive and those who are constantly “to the best,” can, however, be an indicator of the finest community. When a project is coming along, “Moon” is highly enthusiastic, but when the project isn’t going well, he’s also prepared to rip the team apart and curse them.
10. Price Action
We should pay attention to the projects that have survived a prolonged bear market and are beginning to gain momentum in price, volume, and PFP usage. If the team and community have stuck it out multiple times, they have a higher chance to stick around for the next one.
11. Aligned Incentives
- What is the mint price?
- What % of mint and royalties are going to a community wallet? The royalty fee may be excellent for the project’s growth, but it also loses its value if the floor price and trading volume fall. The challenge of encouraging teams to commit to long-term work while discouraging short-term commitments has always existed in the NFT sector. I have several solutions for this.
- Low mint price or lock mint revenue in a wallet that gets released on performance goals.
- Team mints part of the collection themselves with an unlock schedule.
Verdict
The NFT market recently began to heat up once more after a number of recently announced projects with strong price rises. In addition, the above data indicate that there is a lot of good news and that awareness of NFT is growing. Crypto winter has arrived, it’s also time to purge projects. Good projects stay and bad projects go. Everything is just beginning.
If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.
DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.
Ares
Coincu Ventures
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