When it comes to non-fungible tokens or NFTs, there’s an old proverb that states “go hard or go home,” and it’s difficult not to adopt the same mindset. The media is awash in success stories, and we’ve seen celebrities from all around the world join the NFT movement.
Investing in NFTs appears to be the quickest way to make money. However, there will be hurdles, as with any thrilling event. When someone invests without first conducting thorough research on the subject, the risk is multiplied by a thousand.
Long term viability of NFTs
Most NFTs ventures place a high priority on establishing a strong community. They employ a variety of strategies, including community participation, polls, and additional prizes. Gala Games also offers NFTs, but it goes above and beyond in terms of customer service, with one of the most active and helpful discord servers in the industry. Interest can be maintained in NFT efforts that have a strong community/team that continues to expand. Art and “very rare/iconic NFTs” have a “high chance” of surviving bearish waves and achieving growth. NFT prices will skyrocket if the anticipated crypto bull run continues for a few months.
Reasons why NFTs fail
Scams and Rug pulls: Due to the increasing growth of the NFT area, the rug pulls ratio has risen considerably. As a result, garnering community trust for various projects is extremely challenging. Rug pulls have emerged as the NFT ecosystem’s go-to fraud, accounting for 37% of all crypto scam earnings in 2021, up from 1% in 2020.
Finance: Project failure can also be due to a lack of proper financial planning. To ensure that the project does not go over budget, expenses for each phase should be allocated separately. Because you won’t be able to complete the launch the way you want if you don’t have enough money. Furthermore, all of your efforts may be for naught.
Creativity: The only way to succeed is to be innovative or creative. The majority of the projects recycle previous ideas without making any further attempt to be new. We are all aware that the NFT field is relatively new and quickly evolving. A single innovation could make or ruin your project, whether it’s in the artwork, contract, or community.
Advertising: Part of the reason for the failure of NFT initiatives is a poor marketing approach. It will always fail if a project is wonderful in every regard but the community is unaware of it. Using hired influencers isn’t the only way to get your message out there. Bring fresh ideas to the project or dazzle your audience, and they’ll help you spread the word.
Artwork: The majority of projects do not place a strong emphasis on their artwork, and as a result, their audiences are underwhelmed. Great artwork, a well-thought-out business model, and equal distribution should all be high on your priority list.
Team: Many efforts fail as a result of ineffective team composition. Experts from all sectors, including design, development, marketing, and community management, should be brought together. Then sit back and watch as the enterprise rises to new heights of success.
Group: A vibrant and pleasant community is missing from failed projects. Create a society, don’t tell collectors you’re just after their money and give them extra perks like special AMAs and venues, as well as opportunities to interact.
At the end of the day, the invention is a limited resource. It will be more difficult for NFT projects that do not offer anything new, engaging, or exciting to break through the noise and get high rankings on OpenSea or generate Twitter engagement.