How I evaluate an NFT project
An NFT project could be successful in many different ways. In this post I try to summarize some scoring criteria. Hope it helps you think clearly.
Each of below could be a score from 1 to 5, with some questions to ask yourself.
Team
Team in my opinion are the most important criteria in evaluating an NFT project.
- Do you know who the team are?
A lot of times people will buy just by blindly following influencers. They do not even know who the people are behind the projects.
- Are the team doxxed?
Doxxed means the team are not anonymous. Anonymous people can just rug you and be gone. Doxxed people will want to keep their reputation.
- What are the strengths of the team?
There are different flavors of the founding team. It could be art, marketing, or tech and product building.
Typically I prefer a tech and product led NFT project since there is typically more innovation. This is why I have sold my Cool Cat and bought into Doodles.
- Do the team execute and deliver constantly?
Many people come into the space, issue an NFT and no longer work on it. This is often the case for NFTs issued by pop stars.
For NFTs to rise in price, there should be constant value add. And being able to deliver constantly is super important.
Community
- Have you been in the project’s discord?
The best way to feel a project’s community is get into their discord and feel it out. Talk to them, ask why they like the project, feel the vibes.
Before I bought into Doodles, I asked at a few different times why people love this project. Typically if the discord does not give you good responses, that is a bad sign.
- Some questions to ask the discord group:
Why do you like the project?
What is the most exciting thing on the roadmap upcoming?
Aesthetics
Coming from tech background, I am not an art expert. I just buy innovative NFTs as long as they do not look ugly.
Roadmap
You should probably also check out the roadmap for the project in the next few months, and ask yourself, does it excite you? You can typically find this info in discord channels or ask there.
Last Thought - Innvators, Immtators, Idiots
At the end of the day, what matters most is innovation. And what retains value is constantly delivered innovation.
First come the innovators, who see opportunities that others don’t.
Then come the imitators, who copy what the innovators have done.
And then come the idiots, whose avarice undoes the very innovations they are trying to use to get rich.
-- Warren Buffet
The current NFT space has tons of imitators and idiots. And I believe the biggest key to win is to tell the innovators from immitators and idiots.
Using the example of Cool Cats vs Doodles, the recent development of Cool Cats is mostly issuing tokens and derivative airdrops, honestly nothing new, mostly immitating previous projects. However, Doodles is doing something new as the space doodles is non-dilutive. To me, that is innovation.