Now that you’ve got you wallets set up and ETH in your MetaMask, it’s time to start searching for projects. But before you do, I want you to know what to look for in an NFT project. I also want to point out some red flags to look for to avoid getting scammed or losing out on most of your investment.
Remember when things started selling on the internet? I do. One day ordered a Razor scooter on eBay. What I got in the mail was very different than what I thought I paid for. I got a piece of paper with a Razor scooter printed on it… PLEASE don’t be that version of me with NFT’s! Listen to what I’ve got to say…
*I’m using Smilesssvrs as an example below because it’s one of my favorite projects ::)
- Verify on OpenSea
When searching for projects, I often use OpenSea to find verified collections (with the blue check mark) to make sure I’m buying from a trusted source. Not all projects have the verified collection, so you’ll have to do a little more research. However, if the project has that check mark, you know you’re in the right place and buying from a verified seller. If the project is very successful, often you’ll see duplicate names with people trying to scam you out of ETH. Always double and triple check to make sure you’re buying from the right place. Now, if the collection isn’t verified on OpenSea, that’s not necessarily a bad thing, it just means you need to do a little more digging.
Whether the collection is verified on OpenSea or not, the second place I look is always Twitter. I want to A) make sure they have a link to their website or OpenSea link and B) have a fairly solid following or community. The reason I look for links is because that’s when I’m really going to start learning about the project and whether I like it or not. It’s going to be the information (or lack thereof) that comes from these next few steps that really seal the deal for me.
Before you start clicking links, I beg you to scroll through the Twitter feed and see how active they are. Are they tweeting all day or a few times a day or are the barely tweeting at all? Do they have engagement with their posts or is no one liking or responding to them? If they do have engagement, are they engaging back? This will start to give you a decent idea for the project, although not a deciding factor in my eyes.
After scrolling through Twitter and trying to catch a vibe, you’re going to head over to the website where you’re going to get ALL of the information you should need to make an educated decision. First and foremost, you’re going to want to see what the project is all about and what their goals/roadmap is. While most of this is long term and it’s hard to know exactly what you’re getting into, it’s nice to see at least which direction a project is trying to head down. Is it simply an avatar? Is there any utility that comes with the token? Are there future plans to develop characters or make it into a game or movie?
After that, I want to go in depth on the creator. Who are they? What have they been up to prior to NFT’s? Ideally the creators or team have social media profiles. I would highly recommend going through their profiles and seeing if they’re someone you want to invest in. Do you believe in their work and do you believe they have what it takes to get their work out there? Some people are UBER talented and still cant get a follower on IG… craziness! Nonetheless, you should be able to get a pretty good idea by now if it’s worth spending money on. However, there is one last place that I’ll check before making a final decision on a project…
Discord isn’t usually a deciding factor for me, however sometimes it does solidify my decision one way or the other. Discord numbers are often inflated with bots or fake subs and it’s hard to tell how genuine people’s intentions are. There are a few things I do look for in the Discord that are quick are easy to recognize.
First, it’s important to make sure they have a well organized channel list. On the left hand side you’ll notice how you can pretty much get any information you need about the project and there is a dedicated channel for everything.
Second, you’ll want to check out the main chat room to see how active the chat is. You also want to see what they’re talking about at first glance. Maybe even say waddup and see if you get any responses from people. Usually, not always, the more active the community, the better it is for the project. Now, if the community is talking about floor prices all day or talking down on other projects or people in the chat, it’s probably something you’ll want to stay away from.
Lastly, you’ll want to see if the creator(s) are active in the Discord. If they just have a team of people/mods working for them and they’re not active and just reaping the benefits, it’s something to take note of. A healthy community requires the attention of its leader(s) and you can find that out pretty quickly by hopping in a Discord server.
RED FLAGS 🚩
- Ghost Creators
Any project that has creators who won’t disclose their identity, it’s an instant NO from me dawg! Seriously! I will not even pay attention, I don’t care how good the art or NFT looks, it’s a no. I’m more so investing in the artist than I am the NFT or community or rewards that come along with owning it. If they can’t reveal their true identity and show us what they’ve been up to before NFT’s, look the other way!
- Wen Lambo?
It’s funny when creators or projects promise Lambos/cash/eth/floor sweeps. Usually when I see that, I think automatic cash grab. I’ve seen a lot of drops and anytime projects promise a certain floor price or promise lavish rewards, it’s usually a huge red flag. Let’s also not confuse a genuine giveaway with a crazy false promise… Lambos and floor sweeps are ridiculous. Airdrops and real utility are different!
- Spam Promos
Usually when you get those DM’s or TikTok’s with a spammy NFT project “coming soon” that’s “going to the moon”, it’s an instant red flag for me. I completely understand paying for marketing and getting your project in front of influencers and whatnot. But spammy DM’s and paying influencers to sell your project is usually a hard no from me. To me, it’s a cash grab and over time, that project will completely fizzle out to zero. (Outside of the few die-hard supporters).
Buying a project is NOT easy. There are obviously a lot of things to check and double check before making a final decision on something. There are thousands of projects out there and there will be an unlimited supply of more projects as NFTs get more popular. The more that comes out, the harder it will be to find a great project.
With that being said, my advice is to find something and someone that you can believe in and that you LOVE. When you love what you’re buying and believe in the person who created it, it’s hard to get upset if and when things go to zero. Ultimately you’ll end up with something you love and believe in and you’ll have a lot more fun that way. And that’s how it supposed to be!