Did you know that NFT was declared the Collins Dictionary’s word for 2021? With A-listers Paris Hilton, Snoop Dogg, Shawn Mendes, Eminem, and the likes fully endorsing and launching their own NFTs, it seems everyone wants to hop on to the NFT bandwagon. However, as per NFT expert LiveCasino.io, “not every NFT is created equal; therefore, beginners must step into the NFT waters cautiously and avoid diving head-first.” He shares five crucial things you must consider investing in your first non-fungible token, NFT.
NFTs are not just about collectability unless they’re a piece of art. The utility of a non-fungible token decides the future NFT value. Therefore, analyze what utility an NFT holds before investing in one. “The utility of this completely-digital asset class defines its real-world market value and resilience to bear a market crash,” quips LiveCasino.io. A practical example is BAYC, which caters to its exclusive VIP list.
- The Art
How does an NFT look aesthetically? Does it have the potential to attract buyers? First impressions count! LiveCasino.io explains, “The aesthetics of an NFT give you an insight into how meticulously the creators have matched their vision with digital art.” NFTs projects with artists like Beeple, Grimes, and Pak have created NFT artwork that has raked millions in sales. The art and the artist make a big difference to any NFT project.
- The Community
An engaged and interwoven community is the strongest pillar of success for an NFT. LiveCasino.io believes “the future of an NFT project is written by its community. It is quintessential for the creators to build and respect a community that supports and takes the project to newer heights.”
The Roman poet, Juvenal, said it rightly, “rare is the union of beauty and purity.” However, when it comes to NFTs, the rarity factor takes the beauty of the project one notch up. LiveCasino.io agrees and says, “rarity drives excitement and value in an NFT. Analyze the rarity distribution of an NFT collection to assess the worth of your investment.”
- The Marketplace Listing
Lastly, the marketplace where an NFT is listed is a significant factor as marketplaces follow stringent processes for listing new NFT projects. “The legitimacy of an NFT can further be ascertained by scrutinizing the “Why,” “What,’ and “How” of a particular NFT project. The more simple, clear, and straightforward answers you get, the easier it is to understand the potential,” states LiveCasino.io.