The internet is a perpetual source of innovation. So much so that blockchain engineers are reimagining the internet as “web3,” a decentralized version of the internet. Everyone has heard of bitcoin and cryptocurrency, as well as the more recent trend of buying and selling photos with data on the blockchain, known as NFTs. Retail speculators are finding it difficult to keep up with the pace of change. Worse, many people join engaged too later and lose a lot of money or become victims of fraud, both of which may be disastrous.
The NFT hype
Ethereum is the first one to deploy smart contracts, and it was the first to do so. A smart contract is a self-executing agreement in which the agreement’s terms are put directly into lines of code. This enables Ethereum’s blockchain to record transactions and be used for purposes other than trading bitcoin. Crypto Punks popped up and stated, “Let’s exchange images using smart contracts.”
Not for the weak hearted
Fraudsters and other unknown people have taken advantage of the quickly changing and expanding pace of digital artwork, creating a breeding ground for them. It’s not just upsetting for the people who have been duped, but it’s also upsetting for new projects who are attempting to establish something. As a result of this image in the space, many new projects have failed to prosper. A small group, on the other hand, is thriving and making many people quite wealthy.
Things to look out with NFTs
The road map is a helpful way of checking the authenticity of a newly discovered project. If they have both, they are off to a tremendous start. It’s the same as when you’re running a regular business. It requires a well-defined vision and mission. What distinguishes them from others? How was it constructed, and how much time and work went into putting two and two together? Is what they wish to do also feasible?
Any project’s founders or creators play a critical impact in its future success. Many owners hide behind a veil of obscurity, and when problems develop, such as miscommunication about information and ownership, they flee. It’s critical that the project’s developers provide some amount of clarity about what the project’s goal is and how they plan to achieve it. The following are some questions to consider:
• Who are they or how do they present themselves?
• What is the color of their background and how clear is it?
• What motivates them and what do they want to achieve? Are they artists or are they working on a one-of-a-kind project?
• Would like to be a part of the project and do you think you’ll gain something from it?
• Do they seem to be in it for the income, or do they have a strong desire to succeed? In other terms, is it enjoyable, or are they solely concerned with the cost?
So, to date, NFT enterprises have mostly operated online. This implies that their presence on social media is crucial — not just in terms of the number of supporters, but also in terms of their voice tone and activity. Where are they to be found? Do they only have Twitter or do they have Discord and/or Telegram as well? Is their Discord a sophisticated structure with in-house devs, or is it a simplified example with a few streams?
In general, community-driven projects are the most effective. A culture has developed inside a community, and culture attracts followers. If indeed the program has a strong community behind it that is enthusiastic about it, it is a solid sign that the initiative has a good chance of success. NFT projects rely heavily on culture and shared ideals.