A strong roadmap.

Most NFT projects have something called a roadmap that explains what the project is going to do when it hits major milestones. You can usually find this on their website or Discord server. Stronger projects have a roadmap that includes things like benefits for holders, exclusive parties, access to people or information, regular giveaways, a utility like staking, or regular airdrops to key holders. The milestones in the roadmap usually correspond to sales goals (a percentage of the NFTs sold), but should also include plans for after the collection has been sold out.

A fully doxxed team.

This means that the founder(s) of the NFT project have disclosed their identity and can easily be attributed to the project and art. This provides accountability to ensure they will carry out the promises they make in the roadmap because it puts their reputation on the line. Even better if they have a celebrity status, multiple successful businesses, and strong connections.

Good-looking artwork.

Perhaps this is self-explanatory, but it is important that the artwork is cool and something that people want to buy. However, this is not a make-or-break item. Let’s be honest, crypto punks aren’t the fanciest artwork in the world but it sells.

Lots of followers on Discord and Twitter.

The NFT community thrives on Discord and Twitter, and you can get a sense of the popularity of the project based on the number of server members on Discord and Twitter followers. Keep in mind that some of these followers are likely to be bots, so assess how many of the followers are actually active.

A strong and positive community.

The NFT community is the heart of an NFT project. Check the conversation about the NFT on social media, especially in the general chat rooms on Discord. Does the community engage frequently and with substance? Or are the interactions forced and superficial? Look out for FUDders,

Item scarcity.

Compared to the number of followers that the project has on Discord and Twitter, it is also helpful if the NFT project has scarcity, meaning a low number of items. Some collections that mint 10,000 pieces do well, but lower numbers of minting opportunities can help to drive up the price when there are not enough available for demand. Basic economic rules of supply and demand apply to NFTs as well!

A marketing plan and budget.

Hype is everything in the world of NFTs. Value is gained based on likeability and popularity. So, in alignment with that good roadmap, the NFT project should have funds set aside from sales to contribute to marketing. Remember, most NFT founders retain royalties from sales after mint, meaning a portion of the sale goes back to the founders, so they have every incentive to keep the NFT popular and the market price going up.

Good communication between the founders and NFT holders.

Consistent and good communication between founders and holders is key to keeping the holders satisfied. The founders should post regular updates and be transparent about the challenges and problems they are facing (which is normal in any NFT launch).

Utility.

Some NFTs are simply artistic, but others provide access to exclusive benefits to holders. The utility in an NFT can vary, from staking (holding your NFT in your wallet to earn ‘interest’) to regular giveaways to random or elite holders, to private (yacht) parties, to access to networks. An NFT project that includes utility has a long-term benefit and attracts bigger investors (‘whales’) that will buy and hold the project until it increases more and more in value.

A strong roadmap.

Most NFT projects have something called a roadmap that explains what the project is going to do when it hits major milestones. You can usually find this on their website or Discord server. Stronger projects have a roadmap that includes things like benefits for holders, exclusive parties, access to people or information, regular giveaways, a utility like staking, or regular airdrops to key holders. The milestones in the roadmap usually correspond to sales goals (a percentage of the NFTs sold), but should also include plans for after the collection has been sold out.

A fully doxxed team.

This means that the founder(s) of the NFT project have disclosed their identity and can easily be attributed to the project and art. This provides accountability to ensure they will carry out the promises they make in the roadmap because it puts their reputation on the line. Even better if they have a celebrity status, multiple successful businesses, and strong connections.

Good-looking artwork.

Perhaps this is self-explanatory, but it is important that the artwork is cool and something that people want to buy. However, this is not a make-or-break item. Let’s be honest, crypto punks aren’t the fanciest artwork in the world but it sells.

Lots of followers on Discord and Twitter.

The NFT community thrives on Discord and Twitter, and you can get a sense of the popularity of the project based on the number of server members on Discord and Twitter followers. Keep in mind that some of these followers are likely to be bots, so assess how many of the followers are actually active.

A strong and positive community.

The NFT community is the heart of an NFT project. Check the conversation about the NFT on social media, especially in the general chat rooms on Discord. Does the community engage frequently and with substance? Or are the interactions forced and superficial? Look out for FUDders,

Item scarcity.

Compared to the number of followers that the project has on Discord and Twitter, it is also helpful if the NFT project has scarcity, meaning a low number of items. Some collections that mint 10,000 pieces do well, but lower numbers of minting opportunities can help to drive up the price when there are not enough available for demand. Basic economic rules of supply and demand apply to NFTs as well!

A marketing plan and budget.

Hype is everything in the world of NFTs. Value is gained based on likeability and popularity. So, in alignment with that good roadmap, the NFT project should have funds set aside from sales to contribute to marketing. Remember, most NFT founders retain royalties from sales after mint, meaning a portion of the sale goes back to the founders, so they have every incentive to keep the NFT popular and the market price going up.

Good communication between the founders and NFT holders.

Consistent and good communication between founders and holders is key to keeping the holders satisfied. The founders should post regular updates and be transparent about the challenges and problems they are facing (which is normal in any NFT launch).

Utility.

Some NFTs are simply artistic, but others provide access to exclusive benefits to holders. The utility in an NFT can vary, from staking (holding your NFT in your wallet to earn ‘interest’) to regular giveaways to random or elite holders, to private (yacht) parties, to access to networks. An NFT project that includes utility has a long-term benefit and attracts bigger investors (‘whales’) that will buy and hold the project until it increases more and more in value.