Unless you live on another planet, you’ve probably heard of non-fungible tokens (NFTs). NFTs have taken the internet by storm, opening new opportunities for creators, artists, and developers. The NFT space has a large number of projects and tokens worth billions of dollars, making it a fast-growing cryptocurrency and blockchain space.
NFTs have attracted the attention of artists, entrepreneurs, crypto investors, and art collectors. They found and caught a trend – avatar NFTs. Similar to CryptoPunks and Bored Apes, these projects are among the most popular collections. A single NFT in the CryptoPunks collections sells for around $300,000. Rarer items are sold for millions.
However, that does not mean that there is no risk. Each project has hundreds of thousands of potentials that will tend to zero. For that reason, in this article, we will explore eight (8) things to consider that can make NFT projects a success.
What Makes a Successful NFT Project – 8 Things to Consider
Founders and creators play a major role in the success of a project. I think it’s important to understand that when you invest in non-fungible tokens, you are actually investing in the people behind the project. Transparency is key. The founders of these projects need a certain level of transparency to build trust with their potential future investors. Transparency clarifies what the project actually is and how they will achieve it. As you look around, ask yourself if this is the type of project you are working on and want to learn from.
Investing in NFT projects with anonymous teams is not recommended as a “rug pull” may occur. This can be defined as the founding team not delivering on their promises; this could be the case after it has received the money, which could happen right after the minting.
While this is not always the case, caution is advised. Founders or creators of NFT projects may be able to work together to make them more successful. If they already have a large audience, it can be much easier to get involved in brand collaborations and influencer collaborations.
2. Roadmap/White Paper
A detailed roadmap with unique plans is a promising sign if you want to invest in NFT projects. Certain factors such as Brand partnerships deserve attention in the roadmap.
While many of the things mentioned sound great in general, some things need serious consideration.
This includes purchasing the underlying NFT (purchasing the NFT in the collection at the lowest price). While this looks and sounds appealing, the base price will be higher, but it might not be the best use of money.
A more practical roadmap than purchasing a floor price and investing is not recommended; there are still many successful NFT projects doing this. These are just things to watch out for and think about, and most times, they are not a deal-breaker.
Let’s start by saying you already have an asset that you want to convert to NFT. Whether it’s an image, video, avatar, or article, you need to answer one key question: why should people buy your NFT?
To answer this question, you need to ask yourself:
- Why is my NFT important?
- How are they different from other NFTs?
- Why are people trying to get their hands on them over the next few years?
- What value do you give my customers?
- How unique are they?
Successful NFT projects start with clear answers to these questions. The most successful projects tell a compelling story to ensure their audience understands the same value proposition.
For example, the Bored Ape Yacht Club (BAYC) contains more than 10,000 images of various Apes. It started with a story and a vision. Apes exist in a future where early cryptocurrency investors, incredibly wealthy, gather at a yacht club with like-minded Apes.
The project has a roadmap detailing its future and what it will return to early buyers. It has a professional website, a fun and light-hearted brand voice, and has been dedicated to creating benefits for an exclusive community. BAYC is creating a world where people can only join by purchasing NFTs.
4. Actual File Or Artwork
The content of the NFT itself is probably the most subjective aspect of this list. However, it is important to know and understand what type of artwork will appeal to a wide audience.
Even if you may like an artwork, it’s important to consider whether others like it or whether the artwork is too niche to appeal to others.
For example, many people find that the Ape Yacht Club has an attractive appearance for any Ape. No Ape looks unattractive, and a monochrome background ensures a good social media presence.
Cool Cats have a cute and cartoon-like appearance with great appeal. The background is also a solid colour which makes for a great profile photo, and the cat looks hand-drawn.
5. Social Media Presence
Social media is one of the easiest ways to build a following for your NFT artworks. To reap the benefits of social media, make sure you join every social media platform you can and then bring the noise.
A project with no notoriety will have a hard time finding some holders, which means a social media presence is crucial – not just the number of fans supporting the project, but their tone and activity. Look for the amount of followers on their social media accounts. Look for continuous engagement and activities from the founders and followers.
6. Build a Community
Many NFT marketplaces are community-driven. A good NFT project is accompanied by a healthy community. The projects with the greatest engagement are usually the most successful.
NFTs aren’t just about owning a work of art; they’re part of a community that creates culture, and culture creates followers. The Boring Ape Yacht Club is a prime example of this effect. They created a culture where people carry their wares and proudly display their supporters.
A project with a great community speaks enthusiastically about it. This should be a good indicator that the project has good potential for success.
7. Create a Website
In addition to social media, you can also choose the technical way and create your own website. Even if you decide to create your own website, it’s still wise to stay active on social media and use it to supplement your website traffic so you can keep track of everything you have to offer.
A website can benefit significantly from your NFT project if appropriately used. You can feature your NFT art collection on your website, provide a link to your art market, create a blog that will organically drive traffic, or even offer a service like creating custom artwork for people or training others on how to create their own works of art. The possibilities are endless.
Ultimately, creating your own website is a great option for building an audience.
8. Know your Audience
You compete in a market where hundreds of NFT projects fall every week. For this reason, proper marketing is crucial. Luckily, there’s a proven marketing strategy that helps you deal with the competition.
The strategy is to find the right niche for your art – the right audience. Your project should start here. Before designing your NFT, you should ask yourself what kind of art would your audience like?
Also, if you know who might be buying your NFTs, it will be easier to find them.
However, there are different communities on the Internet. That’s why knowing your audience is crucial. It allows you to send your NFTs anywhere, but it also helps you be more strategic about your promotions.
Here are eight things to keep in mind to make your NFT project a success. The caveat is that this requires hard work. However, the effort will eventually pay off. Once you master the ability to successfully run NFT projects, the degrees of freedom and income you will have, the sky will be your limit.