When you DYOR on which NFT to buy, there are a few things you need to look into. However, before looking into these very important aspects, the first rule should be to find an NFT that you genuinely like. That way regardless of what happens to the value of your NFT, you aren’t upset if it drops below what you purchased it for.
Here’s what to research when attempting to buy a good NFT with long-term value. I like to refer to these as the three C’s. The creator, community, and the contract. Let me explain.
The first task during your NFT research should be to find out who the creator behind the brand is. Generally, a reputable NFT project will have a doxxed creator(s) and be completely transparent with their intentions of the project.
Remember, you’re investing in the person behind the NFT and their ability to execute, not necessarily the NFT itself. So it’s important to understand that the success of any NFT project ultimately depends on the creator's ability to see it through.
I’m well aware that the common misconception is to look at a project’s roadmap to determine if the NFT will be sustainable or not, but in all reality, a roadmap is nothing more than an idea. Anyone can say what they’re planning to do, but actually executing that plan is what will make or break any NFT project.
An example of a good NFT project is VeeFreinds, a project built around meaningful intellectual property by a successful entrepreneur, businessman, and investor Gary Vaynerchuk. Knowing Gary’s history of building proper brands and businesses, combined with his ability to spot trends far in advance, you can assume Gary may be a good person to invest your money in.
If you find that you can’t figure out who the human is behind a project, then it’s best to approach the rest of your NFT research with extreme caution and thoughtfulness. Generally speaking, if a creator behind a project isn’t willing to disclose who they are, then it’s likely that the person is not confident in their ability to execute or they have bad intentions.
After determining who the creator is behind an NFT project and if you feel good about them, next you can move on to exploring the community. When researching an NFT project’s community, make sure to cover all your bases.
Currently, platforms such as Twitter, Discord, Instagram, and YouTube can all be places you may find an NFT community hanging around. A good NFT project will usually have an overall positive outlook on the project, the team, and the future of the brand, all projected by members of the community.
You should always feel free to ask any questions you may have directly aimed at the community, this will not only help you understand the project better but will also give you a better understanding of what kind of people are involved in the community.
A solid community will be happy to answer any questions you might have or at least give you some direction on where to find the answers.
Other signs to watch for when researching any NFT project are how often they post on social media, their interactions with others, and how willing they are to help others.
If a project’s feed is only full of free giveaways demanding retweets and shares in return, then you may want to think twice about why they are doing this, and what benefits it provides for their brand in the long run. You may find that the only benefit is short-term gains and exposure
If you like what you see in both the creator and community, then you can begin to dig even deeper into the actual utility of the project and what value it provides you through the smart contract.
It’s fair to say that not every NFT you look into buying will have a smart contract. If you are buying a nice piece of art or a collectible item, you may simply be buying that NFT as a collectible, and that’s completely fine if that’s what you want.
However, there are many NFTs that may offer actual utility to collectors, and sometimes that utility will also come with very specific terms and conditions. If you can’t find the terms and conditions attached to the NFT itself, then you should be able to view everything included with the purchase of said NFT on the brand’s official website.
If you value everything that the NFT has to offer you as a collector and you’ve covered the three C’s extensively, then you should be all set to purchase your NFT.