NFTs (Non-fungible Tokens) are crypto assets that have revolutionized the digital market for commercial products. NFTs are digital tokens used to designate commodities like artwork, music files, individuals’ identities, etc.
Non-fungible tokens have turned into a great tool for artists of late. They enable artists to assign a digital token to their artwork. The art sold in this manner is known as crypto art. Each digital token would have a unique identification code and metadata. The most important feature of an NFT is that it’s irreplaceable.
Properties of a Great NFT
Non-fungible tokens make buying, selling, and trading much more efficient and hassle-free. Furthermore, it reduces the possibility of fraud by a great measure. However, all NFTs can’t be trusted blindly. Therefore, you must understand the distinct features of a great NFT to invest in.
Crypto art is just an example of how NFTs can be useful. Many projects may define the future of NFT. Let’s look at some characteristics that can help you determine what makes a great NFT.
Strong Community
Some examples of great NFT projects are the Bored Ape Yacht Club, CryptoPunks, and CyberKongz. What makes these NFT projects great is that they have highly efficient teams and strong online communities. Members of a strong community will be highly unlikely to sell their tokens for nominal prices.
Utility-based NFTs
A good NFT project will accommodate tokens that employ some sort of value. A simple example of this is membership rewards, which may be digital or real-life. Some examples of utility-based NFTs are Shadowy Super Coder (SSC) and Space Traveler Club.
Accessibility
The trademark of a good NFT project is its accessibility. If NFT projects are too pricey and inaccessible, only a limited number of people will be able to participate and benefit from them. This goes against the principle behind establishing a digital marketplace. In this case, fairly priced commodities are key to a good NFT project.
The good can’t exist without the bad. Let’s look at some things you need to watch out for.
Most NFTs are too expensive to buy. This has opened the market for countless copycats who sell fake tokens, making it extremely difficult to find genuine assets.
Hype doesn’t always equate to quality. It only takes a few hundred dollars to promote something on social media. However, that does not mean it’s worth investing in. Relentless promotion of an NFT that’s likely to fail ends up trapping a lot of people into thinking it’s a good investment.
Now, this is not news, but the crypto market is increasingly volatile and unpredictable. Remember that with each investment made in the NFT market, you are taking a risk and must be prepared for any perceivable damage.
That said, some truly reputable NFT collections can make it worth your time and money. At Paddy’s Odyssey, we are working towards making our NFT collection the best around, combining all of the above elements and more.
In simple words, the NFT market is a new and emerging space that opens a whole new digital world for artists and several other types of sellers and traders. While the influence of NFT has become moderate since its initial fame, there are numerous exciting projects to invest in.