Latest NFT News

My most important tip for NFT investors

0



Today I want to talk about maybe the most important factor that will separate good NFT projects from bad ones, and that’s: quality founders and creators.

Many new investors need to understand that when it comes to the vast majority of current NFT projects there is an expectation that value will increase based on the efforts of others. In other words, people are at the center of these NFTs.

In the case of games like Axie Infinity or Illuvium, you’re assuming that the game will continue to be maintained, and that someone will run marketing campaigns, manage the discord, and the servers, and that if a bad actor figures out how to manipulate the economy there will be some patches that bring things back to balance.

In the case of NFT avatar collections like Bored Ape Yacht Club or Cool Cats, the creators are supposed to be the overseers of the roadmap, and they should also help bring in collabs with other brands.

And while NFTs are great in that they allow anyone to create digital assets, in no other situation would you invest in just about anyone – yet that’s exactly what I’m seeing people do right now, mostly because we’ve been in an NFT mini bull market where almost everything has gone up.

In this video I show why it’s incredibly risky to invest in projects with anonymous founders. My personal rule is that I won’t buy into these NFTs unless the founder has taken steps to validate their track record/reputation (there are ways to do this without sacrificing anonymity as I show in the video). It doesn’t mean that all of these anonymous founder projects will fail, but we’re dealing with so much other risk in this space as it is that I don’t want to add potential rug pulls to my list of worries (it can happen with public founders too, but when someone stakes their reputation on a project it makes it far less likely).

Follow me on twitter: https://twitter.com/GiancarloChaux

Be my friend on BitClout: https://bitclout.com/u/giancarlo_

0:00 Intro
1:24 the two types of NFTs
2:56 people are getting away with this mistake for now…
3:53 how NFT projects are like angel investing
4:57 Lonely Aliens Space Club…
5:49 Slacker Duck Pond…
6:27 one solution for anon founders
7:43 the risk scorecard
8:39 which top NFT avatars have good founders?
9:56 what if the project is decentralized?

source

Leave A Reply

Your email address will not be published.