- TOP 3 factors that kill NFT projects are community growth and engagement failure, impractical and short-term roadmap, and unqualified team.
Investors get caught hard by FOMO in NFTs and cryptocurrencies and have reached the point where it’s foolish and irresponsible for the investors to ignore them. NFT sales volume in 2021 was $40 billion, and 2022 has already surpassed this number last month. This is so intriguing, but the only problem is that the “Blue Chip” category NFTs are too expensive to dive in, and most new NFT projects fail to make an impact. But what exactly is the reason that kills these NFT projects?
TOP 3 Factors That Kill NFT Projects
- Community Growth and Engagement failure
The NFT community is virtually connected, and if there’s nothing to keep the hype up, the sale volume and floor price will start to plunge. On the other hand, successful projects work on community growth and keep them engaged through their long-term roadmap. Remember, an NFT project sells as long as people are talking about it and it’s making headlines (at least on Twitter).
you may also read: Jim Carrey’s First-Ever NFT Sale For 62 Ethereum
2. Impractical and Short-term Roadmap
The roadmap of a project promises future drops, utilities, and responsible for keeping the community together by HODLing their NFTs. If the roadmap is not feasible and the team fails to achieve it, it hurts the community’s confidence. Plus, a short-term roadmap gives NFTs an expiry date, and the project fails even before the expiry.
Bored Ape Yacht Club keeps dropping something that keeps the community very curious, which is why entrepreneurs like Elon Musk and Gary Vee are a part of it. BAYC first dropped the NFTs to offer premium membership to its club. Then it dropped a child NFT project free for the community, and recently it has launched a BAYC crypto token. Being in the news gives BAYC an advantage and a reason to stay on the throne.
3. Unqualified Team
A project might see a sudden rise in the popularity of NFTs along with the elusive nature of the whole ecosystem due to extensive marketing, influencers, or a hyped-up roadmap. Still, the real challenge is to keep it on track. Having expert and qualified teams mean half the battle is won. But if someone from the core team decides to give up on the project and make quick cashouts by selling their part, it turns the project into a pure Rug Pull.
Always look for these red flags before you buy NFTs. Project evaluation and doing your own research (DYOR) not only add confidence to your investment but also make it safer.
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.