From the beginning of 2021, NFT will explode in popularity. In the past year, OpenSea has completed NFT transactions worth US$5 billion. A year ago, the monthly transaction volume recorded on the platform was just over $8 million.
The mania for NFTs has reached new heights.
Although the popularity of NFT has created a lot of opportunities for investors, the ensuing problem is that it is becoming more and more difficult to invest in valuable NFT, or it is full of pits.
Pay attention to these points, Scallop Technology will take you to avoid low-quality NFT projects from the perspective of project distribution.
1. Bad Design
A poorly designed project can lead to bugs, inefficient gas, exploitable mint, and more. Measuring bad code, etc. is difficult for novices and a lot of non-technical experts, so following those who know the trick and learning from their judgment will be key.
2. Low quality art
If you come across an art project that looks like it was conceived and completed in an hour by a platform, chances are it’s low-quality stuff.
So, if the NFT teams themselves don't take their content seriously, why should you?
Remember that there is a huge gulf between tasteful/charming/funny/weird minimalist work and kitschy trash. You can be the judge!
3. Dangerous signal : Deliberately maintain the floor price
If you see project leaders discussing or trying to maintain a floor price for an NFT, you should get out of the place, they're just running a financial scheme with little real interest in cultural value or community. This insincerity will affect all their troubles in the future, and they must be careful.
4. Whitelist for sale
A new thing I've seen recently is that NFT teams are selling their NFT minting whitelist, wow! It's just a cash grab.
5. Completely anonymous team
There is nothing inherently problematic about having a completely anonymous team, people have a right to privacy and in many cases the quality of the project and code base etc will speak for itself. However, in the worst case, completely anonymous teams can cause serious damage, such as disrupting liquidity, and then have little to no liability.
6. Lack of track record
If an NFT project team lacks experienced NFT veterans, the project is more likely to be eliminated.
7. Too optimistic
Have creators of new NFT collectibles said their creations are "blue chip quality" and will be the next Boring Ape Club?
Is the roadmap of the project a metaphor for going to the moon, such as saying that it will be the first real lunar NFT market?
Just be sure to avoid pure rhetoric.
8. Abuse of Discord
When community members raised reasonable questions, the NFT team chose to ban their Discord account. Good projects are inclusive and forthright, not combative and secretive, and teams abuse their moderation responsibilities with no good reason.
Scallop alert:
According to Chainalysis, more than 1,000 NFT series are listed every month, so why do some series succeed while most fail?
The value logic behind NFT is still traceable, and it is not limited to the added value such as artistic value, scarcity, circulation value, membership rights and so on. We must be good at discovering from the dangerous characteristics of these NFT projects Problems, arouse vigilance, so as to avoid these risks, so that we can make NFT investment more shrewdly.
At the same time, we also have a few lines of proverbs that we would like to share with you:
- Choose a Reliable Project
- Gain insight into product, rarity and price activity
- keep an eye on the listing
- The sooner you sell after buying, the better
- Communicate with the community and create trust