No matter how big or small you are on social media; you probably have recently noticed a ton of DMs in your inbox lately (especially on Instagram). Those DMs are nothing else than cold marketing attempts to drive your attention toward “new” and “innovative” NFT projects. But let’s be realistic here; most of them are just another collection of a few thousand NFTs with no real utility and probably already doomed to fail. They do all, however, try to get your money.
This brought me to think about how you can actually identify worthwhile projects, and I came up with two categories of NFTs.
- Sole collections
- Collections with utility
Sole collections are super tricky. They provide nothing else than beautiful graphics, and they are the art of the NFT world and consist of images, short videos, or sound. You either buy them because you hope they go up in value, or you buy them because you like the aesthetics and looks.
Collections With Utility
Great collections with utility do not only look fantastic, but they also provide their holders with perks. They either give access to a closed community, discounts on purchases, a one-on-one, a dinner, etc. I think you get the idea. What makes them especially valuable is not only their perks but also who’s a member of that circle. Some collections out there put you on one Discord with Snoop Dog or other celebrities, for example. That’s indeed an opportunity for you to get closer to them, or maybe even propose them a business idea.
How You Can Identify Collections Worth It
There are multiple ways to deal with this problem, and a lot of it depends on the reasons you are in.
If you are only in for the collectible, it’s relatively easy for you. It’s all about what a specific piece is worth it for you. You don’t speculate on rising prices in this case, and you only want to own the piece. This is when you pay what a piece is worth it for you personally. There is not much more to it.
If you look for the utility, you need to put in a little more research. In this case, the best thing to do is to follow NFT Twitter closely. Try to find the influencers in this area and also closely monitor the accounts of celebrities who have already shown their interest in the NFT space. When they begin to talk about a project, you should definitely become interested, as well. Look at what other enthusiasts say about a project. I usually open a Notion page where I collect everything I can find out about that project, and it helps me later decide whether it’s worth it for me to go in.
If you look for an investment, you have even more research to do. Gladly, everything from before still applies. You should have a Notion page for each project, and you should closely follow the space. Additionally, look for whales. Whales are investors who either regularly sell NFTs or even create collections themselves. If you see someone like them beginning to mint NFTs, you know they are up to something.
Two Tools To Help You
You don’t have to do everything yourself, of course. There are tools that track whales, collections, and everything else. Two of those are the following ones. You can use them to collect indicators (signals that tell you something is coming, or a collection is worth it).