How to DYOR in NFTs
A Long Thread🧵
I’ve been meaning to make this thread for awhile and for two reasons, First is because there’s been an influx of newbies in the NFT space recently and second is cause I’m tired of the “Is this a good project?” messages in my DMs 😂.
Before we forge ahead, I want to make something very clear, In this space, you have to read and read a lot, so if you don’t like reading you need to get used to it, cause it’s really important in crypto generally.
So you discover a new project, what next? How you do you find out information about the project? Is it a good project? Should you spend your time and money on the project? Ultimately, answers to most of the questions here are going to be personal decisions you make, cause…
there’s no particular way or laid out pattern to know if a project is good or not, or to find out if it’s a rug or not, but there are some tips that can help you make better decisions when picking projects you want to invest your time and money into.
So first thing I usually look out for when i discover a new project is the influencers following the project, Influencers come across information earlier than the rest of us, so check if big influencers follow the project. Here’s some influencers i follow in the NFT space…
@NFTLlama
@BentoBoiNFT
@ryandcrypto
@KosherPlug
@feyi_x
@WisdomMatic
@BigOsCrypt
@Ladimeji3
@thegreatola
@notEezzy
@DannyCrypt
@jalaal_tweets
@theNFTjosh
There are a lot more influencers and it’s good you follow everyone of them and learn as much as you can from them
Next is the project’s website, usually projects have the link to their website on their twitter bio, you want to read through the website and learn as much information about the project as you possibly can, don’t be in a hurry to read it, take your time to read and understand.
If the project doesn’t have the link to their website or discord on their twitter bio then don’t go to google and start searching for information, you’ll only end up misinformed, so the best thing to do is keep the project on your radar till when the website is available.
Next thing is the Team behind the project, find out if it’s a doxxed team or it’s an anonymous team, usually you can find out from checking the accounts that the project follows, if the team is doxxed, then one thing I usually do is to go to the instagram handle…
the artist or the studio behind the project and check their track record, you want to see similarities between the past work of the artist and the present collection they are working on, this usually means that it has been an idea that has been with the artist for awhile…
check for the previous work experiences of the other team members, most times they usually just put it on their twitter bio. Now understand that this is not the case with every single project or team, but if the information is available then you should definitely find out…
everything you can about the team and their previous experiences.
Next thing is the twitter handle, when was it created, the amount of followers, does the amount of engagement on tweets reflect the amount of followers?, if it doesn’t reflect then it most likely means the project bought an account or they don’t engage with their community enough
and that’s a red flag IMO, you also want to know when the handle was created to know if they’ve been building or just started building, although this almost means nothing most times but it’s just information to have with you I guess.
Next, you find out what kind of project it is, A project with utility?, Just pfp and vibes?, an artist‘s collection?… After finding out then you have to make a decision if it’s the kind of project you want to get into, If it’s a project with utility then you want to make sure…
it is good utility and it’s something the team can execute, if a team is promising the community $1000 to every holder every week, then it’s probably not sustainable and you shouldn’t want to get into a project like that for the long term.
If it’s a pfp project then that’s…
up to you to decide if you want to invest and hold long term, same as an artist’s’ collection, you make the decision if you want to invest in their work and hold it long term. So I guess what I’m saying is invest in what you like for the long term, so that if it goes to zero…
you won’t be too disappointed.
Next is Supply & Hype, in this space Hype usually almost means demand, so you have to make sure that the supply for a project is reasonable as to the amount of people in their community, a project with 1k members on discord or twitter releasing a 10k supply will most likely…
not mint out and will go to zero swiftly. So Diamondhand or Paperhand, make sure the project has a certain amount of hype that will create a demand on secondary after minting out.
Discord & Community, you can almost determine the sentiment of a project from how the community interacts with the project especially on discord, you want to look out for how community members will go out of their way and spend time to create something special for the project…
or how often people are interacting in the general chat or the number of people in the VC at a time, people will make effort for good projects.
Next is partnerships, Alpha recognizes Alpha, projects that have launched successfully or already have a big community will partner with good upcoming projects and provide more value for both of their communities. So always watch out for the collabs.
Last but not least is AMA & Questions, attend the AMA for the project and make sure you ask questions about whatever you don’t understand, AMAs are the best way to have a smooth conversation with the team and to understand what they are building.
So that’s it, Please understand that doing everything in this thread doesn’t mean that you can’t still be early or jumping into a rug but it’ll help your chances of not getting into one a lot more… Take everything you see in this space with a grain of salt and be cautious.
Thank you for reading, please retweet and follow me for more good content.