Talk of NFTs may be filling board rooms and news feeds, but their complex and new nature makes it hard for investors to determine which projects show promise. In fact, only a small portion of investors are reaping the most profits from NFTs, according to a study by Chainalysis.
I’ve been involved in more than 50 NFT and cryptocurrency deals, and am committed to scaling the DAO (decentralized autonomous organizations) ecosystem. However, the unfamiliarity of the NFT space is why many investors fear dipping their toes.
NFTs are more than famous artworks, songs and tweets — they serve as part of the broader decentralization movement. From copyright enforcement to buying real estate and identity verification, NFTs play a big role in the remote,= digital world. In the first half of 2021, the NFT market cap grew 2,100%, reaching $2.5 billion in sales volume. Meanwhile, the creator economy boom has opened more doors for NFTs, as people don’t have to go through aggregators or intermediaries to create a token.
If you’re speaking with a founder who doesn’t delve into the details of the business model, the tech and competitors, consider it a red flag.
Investors need to know the basics of NFTs and their potential, but they don’t need deep technical knowledge. That’s because the real value of any NFT project lies with the people building it. They are the ones who will sustain promising NFT projects as they face inevitable moments of volatility.
Published By : Tech Crunch