NFTs started waves in 2017 when Play-to-Earn games like CryptoKitties were launched and people could play games while earning in crypto. From there, other games came up utilizing the crypto asset, and then in 2021, we experienced the NFT bull run.
Beeple sold his NFTs for over $60 million. Quantum, the “first-ever minted NFT” was sold for $1.47 million in June 2021 during Sotheby’s “Natively Digital” auction. And now, so many people have gone into creating NFTs, buying and selling on several marketplaces.
If you want to create your own NFT project, then you should know these:
Minting is not Equal to Success
Not all projects that are minted become successful. There are so many examples of failed NFT projects. Baby Baller NFT project by John Wall got into trouble when it was alleged that the project copied a design related to Fortnite. Another example of an NFT that “failed” is the recent NFT released by Chevrolet. The bid got no response despite the free real car attached to the winner of the bid.
According to NFTs Guru website, these are five reasons why NFT projects fail: launch failure; community growth & engagement failure; decline in the hype, buzz, or attention; rug pull; and celebrities getting caught in scams or scandals. Apparently, minting is not equal to making money.
NFTs Have Different Forms
The most popular form of NFT development is picture. However, there are no restrictions on the usage of other forms of data storage to create NFTs.
For example, AirNFTs is known as a music and video marketplace where anyone can create videos and audio music as NFTs.
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What Blockchain and Marketplace Should be Used?
Before minting an NFT it’s vital to know the pros and cons of that chain because the chain affects the transaction speed and transaction fees paid to mint NFTs. The safety of the blockchain is also another good factor to consider.
Another thing to know is the right marketplace to use. Marketplaces are platforms where NFTs are created, sold, and bought. It brings artists and the NFT community together.
Just like the blockchain, the marketplace has charges like minting fees that are attached to services they offer to users. Other factors are payment systems, supported blockchains, and supported cryptocurrencies. OpenSea, Nifty Gateway, Rarible, and Foundation are examples of NFT marketplaces.
Marketing Plan and Team
In May, a weird NFT was released called Goblintown NFTs. There was No Roadmap, No Community, and No Cost to have it except the minting fee. The project was a successful one with Sandbox being one of the global brands that bought one of the NFTs. However, this is not the case with most NFTs.
It’s important to have a marketing plan and a team while launching an NFT project. This will help drive the adoption of the project and keep the team as well as the community in constant communication. So, what are your marketing plans? Do you have a team?
Types of NFTs
Apart from the several forms of NFTs mentioned above, different kinds of NFTs can be created based on the goal of the project. These include Collectible NFTs, Community-based NFTs, Gaming NFTs, Fundraising NFTs, Art NFTs, and more.
Implement Smart Contracts
There is a difference between minting an NFT and having a smart contract attached to an NFT project. The latter most times have more value because it is connected to a service.
For example, an NFT project can be created to help represent a physical asset like a property in the real estate industry. The use of smart contracts with NFTs is part of the future of NFTs.
Also, remember that the prices of NFTs are very volatile. A lot of factors affect this.
Conclusion
Anyone knowledgeable and willing to learn along the way can make money with NFTs. The industry has shown that the potential of the asset is large and in the coming years, it is projected to be used more in other sectors like real estate, sports, education, and more.
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