NFTs garnered much attention recently and became somewhat of a gold rush no one can stop. But why are some NFT collections worth billions of dollars while others are about nobody’s business? It’s simple: the decisive factor determining the “value” of an NFT is the amount of hype that surrounds it. After all, if an Ape JPEG lacks any reasonable measure of intrinsic value, the only thing to look at is the amount of attention it gets from all the other 7 billion intelligent Apes living on planet Earth.
Not surprising that Bored Apes is doing well: it would seem that by now, every self-respecting American celebrity already has an Ape of its own. There was an episode of Jimmy Fallon’s The Tonight Show in which the host and Paris Hilton bragged to each other about their Apes in a very cringe-worthy and unnatural way.
If you’ve been mulling over the reasons why some NFTs fail right from the start while others make a bank, read on to find what sets the two apart.
- Teams lack relevant experience; they don’t understand how to cope with the emerging issues.
- Poor marketing strategy can cause a broken supply to demand ratio, which affects the sentiment around the project.
- Most projects target audiences ineffective, picking the trodden path.
- Creators don’t intend to build long-lasting collections and skive on quality, as the market is ready to buy almost anything.
Reasons why NFT projects fail & solutions for you
What’s the NFT product you buy? Is it art, a P2E gaming piece, or a metaverse-ready project? Is the token really the end product, or is it just the ticket to access the actual product, maybe a community or software? There are many different use cases for NFTs, and you need to be clear about what the product is. So does the project, unless, of course, you want to fail to support a mediocre project.
Exclusivity, aka rarity, is also important. Copycats are everywhere: lurking to flood the market, getting initial traction just to step into the NFT trash-market darkness. Make sure you are not a part of a supporting movement, as such strolls can significantly harass your wallet’s well-being.
While early NFTs were mostly PFP experiments and also generative art, in 2022, the focus seems to be shifting heavily towards extra utility, community access…