Picking the right NFT is a pain in the ass.
You have to sift through countless terrible projects. Sometimes it’s hard to differentiate between winners and duds.
But if you're good at evaluating projects, you’re going to make life changing gains.
Here’s how I evaluate NFTs 🧵
You have to sift through countless terrible projects. Sometimes it’s hard to differentiate between winners and duds.
But if you're good at evaluating projects, you’re going to make life changing gains.
Here’s how I evaluate NFTs 🧵
The 4 most important things to consider when buying an NFT are:
• the team
• the community
• the roadmap
• the art
/2
• the team
• the community
• the roadmap
• the art
/2
The Team
The team is the most important thing to consider when buying into an NFT project.
One of the first things I do when I’m researching a project is to go to the website and look at the team page. I read up on each of the members.
/3
The team is the most important thing to consider when buying into an NFT project.
One of the first things I do when I’m researching a project is to go to the website and look at the team page. I read up on each of the members.
/3
I look at their Twitters and at their Linkedin pages too if I can.
I look at what they’ve worked on in the past.
Have they worked on other successful projects? If the NFT is industry specific, how much experience do they have in the space?
/4
I look at what they’ve worked on in the past.
Have they worked on other successful projects? If the NFT is industry specific, how much experience do they have in the space?
/4
Are they active/helpful on twitter? How passionate are they about the project?
It’s also worth diving into the discord to interact with the team or at least look at the announcements that they’ve made.
It boils down to whether I would trust these individuals with my money.
/5
It’s also worth diving into the discord to interact with the team or at least look at the announcements that they’ve made.
It boils down to whether I would trust these individuals with my money.
/5
I tend to be skeptical about anonymous teams.
To me this isn’t a deal breaker, but it’s definitely a red flag. Anonymous teams can definitely be successful, but it’s much harder to trust an anonymous team.
/6
To me this isn’t a deal breaker, but it’s definitely a red flag. Anonymous teams can definitely be successful, but it’s much harder to trust an anonymous team.
/6
You don’t know as much about them.
You can’t put a face to the project, and there’s a lot less pressure on the team.
They haven’t put their image on the line.
/7
You can’t put a face to the project, and there’s a lot less pressure on the team.
They haven’t put their image on the line.
/7
The Community
Zeneca says that we live in an age ushered in by the Bored Ape Yacht Club. I have to agree with him.
Nowadays, a lot of an NFT projects value stems from the community.
/8
Zeneca says that we live in an age ushered in by the Bored Ape Yacht Club. I have to agree with him.
Nowadays, a lot of an NFT projects value stems from the community.
/8
It’s kind of like a mini network effect.
It’s great to see others have conviction in a project, and to know that they’ll be holding through thick and thin with you.
/9
It’s great to see others have conviction in a project, and to know that they’ll be holding through thick and thin with you.
/9
Evaluating a community might seem tricky but it’s really simple.
You just have to put in some time.
There’s really no way to go about evaluating a community other than joining the discord and taking part in actual meaningful conversations.
/10
You just have to put in some time.
There’s really no way to go about evaluating a community other than joining the discord and taking part in actual meaningful conversations.
/10
Talk to others, see what they’re like and find out why they like the project.
At the very least join the discord and see what others are talking about.
/11
At the very least join the discord and see what others are talking about.
/11
There are a few characteristics that good communities have though.
Having a sizable one definitely helps, but this isn’t the most important factor.
Quality is always more important than quantity.
/12
Having a sizable one definitely helps, but this isn’t the most important factor.
Quality is always more important than quantity.
/12
I’d take a great small community over a mediocre huge one any day.
That being said, having a large discord and twitter definitely does help.
/13
That being said, having a large discord and twitter definitely does help.
/13
An active discord community is essential.
Even if it’s not huge, it’s important that people are active and that it’s easy to have conversations.
/14
Even if it’s not huge, it’s important that people are active and that it’s easy to have conversations.
/14
Moreover, these conversations shouldn’t just be talking for the sake of talking. They also can’t be meaningless.
It’s a bad sign if all people talk about are floor prices.
/15
It’s a bad sign if all people talk about are floor prices.
/15
You should be able to feel other’s conviction in the project. It’s essential for a good project.
If everyone is just there to make a quick buck it’s inevitable that the project will collapse. And NFTs move so fast that a bear market is inevitable.
/16
If everyone is just there to make a quick buck it’s inevitable that the project will collapse. And NFTs move so fast that a bear market is inevitable.
/16
A little floor price talk is fine, but there should be much more going on in the discord.
I really like it when I hear others talking about how much they love the project, help new members out, or even just give me more general advice.
/17
I really like it when I hear others talking about how much they love the project, help new members out, or even just give me more general advice.
/17
The Roadmap
Having a good roadmap is helpful, but it definitely isn’t essential.
I’m very skeptical when I look at roadmaps because they’re often just empty promises.
It’s great to see teams deliver on roadmaps, and I take that as a great sign.
/18
Having a good roadmap is helpful, but it definitely isn’t essential.
I’m very skeptical when I look at roadmaps because they’re often just empty promises.
It’s great to see teams deliver on roadmaps, and I take that as a great sign.
/18
But lately it feels like every project has almost identical roadmaps.
It’s usually a combination of giveaways, donations, community wallets, and merch.
/19
It’s usually a combination of giveaways, donations, community wallets, and merch.
/19
A good roadmap is useless unless it’s executed well.
But I think roadmaps can add to a project.
At the very least it shows me what direction a team wants to take the project.
/20
But I think roadmaps can add to a project.
At the very least it shows me what direction a team wants to take the project.
/20
I try to look for unique roadmaps, people that innovate. Some copying and similarities are understandable.
I mean why reinvent the wheel unless you have to.
But it’s really great to see projects do something unique. It really sets projects apart for me.
/21
I mean why reinvent the wheel unless you have to.
But it’s really great to see projects do something unique. It really sets projects apart for me.
/21
I think some sort of roadmap or some type of plan that reflects the team’s vision for the project is essential, but in most cases it does not add too much to the project.
I never buy into projects just based on the roadmap.
/22
I never buy into projects just based on the roadmap.
/22
Every great roadmap needs a good team to execute and great community to build around.
An excellent roadmap is always nice but it definitely not necessary.
/23
An excellent roadmap is always nice but it definitely not necessary.
/23
The Art
Art is really subjective. I don’t expect you to be an art connoisseur.
But you have to love the piece that you’re buying.
/24
Art is really subjective. I don’t expect you to be an art connoisseur.
But you have to love the piece that you’re buying.
/24
The NFT market is incredibly volatile. Prices can fluctuate 30-50% if not more on a daily basis.
You have to be ready to go to hell and back with your NFT.
That’s hard to do unless you really like it. I own around 40 NFTs and I’m ready to be buried with all of them.
/25
You have to be ready to go to hell and back with your NFT.
That’s hard to do unless you really like it. I own around 40 NFTs and I’m ready to be buried with all of them.
/25
Final thoughts
These are just some guidelines I’d use to evaluate projects.
There are no hard and fast rules to buying NFTs.
But you should always be able to answer the question, “why did i buy that?”
/26
These are just some guidelines I’d use to evaluate projects.
There are no hard and fast rules to buying NFTs.
But you should always be able to answer the question, “why did i buy that?”
/26
It’s important to do research so you don’t get burnt.
If you do a good job researching projects, don’t FOMO, and are weary of hype there’s no reason you can’t be successful and find 100x gems.
/27
If you do a good job researching projects, don’t FOMO, and are weary of hype there’s no reason you can’t be successful and find 100x gems.
/27
I hope this guide was insightful. If you thought it was helpful please retweet and share the top tweet 👇
Also check out my substack for more great content:
pothu.substack.com
pothu.substack.com
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