Do’s & Don’ts Of The NFT Space
With the current rise in popularity of NFTs, many newcomers may find it challenging to get started in the NFT space.
In Season 6, Episode 45 of The Making Bank podcast, Sean Kelly sheds some light on what it takes to enter and succeed in the NFT space. Sean is the founder of NFT project Chibi Dinos and the current VP of Marketing and Strategy at InfiniteWorld. Before securing a job at InfiniteWorld, Sean founded Jersey Champs and also the recently acquired Web3 marketing agency NFT Gorilla. Like most newcomers, Sean entered the NFT space skeptical of NFTs and wasn’t sure if there was money to be made. However, through copious amounts of research, Sean was able to develop an understanding of the NFT space in a few months. In august of 2021, he launched Chibi Dinos and was able to sell 10000 PFPs in just 18 minutes and generated 2.4 million dollars in revenue. Sean understood that NFTs are a tricky space and started NFT Gorilla. Through his agency, he was able to help creators and brands bring their projects to the market. On the podcast, Sean talks about his journey up until this point and what he did to succeed in the NFT Space. Here are the Do’s and the Don’ts of the NFT market:
Do Your Research
The most important thing you can do when entering the NFT space is research. Research the companies, creators, projects, and market — you need to know as much as possible before investing. At the end of the day, you’re spending your own money, and nobody invests intending to lose their money. Before Sean created his own NFT, he spent months researching the space. You can get on OpenSea, sort the top NFT projects, and study them. Sean also followed, studied, and messaged the top NFT creators and owners to learn more about what they did to get to where they are now. Your research goes a long way even after entering the NFT space. Before investing in something, you must research the team behind the project to find out if they’re worth supporting.
Do Purchase And Create NFTs With Utility
Earlier in the NFT space, project creators could get by creating impressive art. However, the space is evolving, and today in the market with so many new and upcoming NFT projects, it’s crucial that you pick NFTs that can provide you with the maximum value. This also goes for new NFT project creators — NFTs aren’t just about creating digital assets; you need to think about the value and utility you can bring to your audience. Only when you have a project that provides both value and creative utility will you be able to succeed in the NFT space.
Do Get Involved In NFT Communities
While many people in the NFT space solely focus on minting or buying NFTs and then flipping them for a profit, Sean talks about the real value of NFTs — the community that comes with NFTs. Find like-minded individuals that you can chat with, share advice, and learn about NFTs. Essentially you’re trying to find a group of individuals who can interact and provide value to each other within the community.
Don’t Follow Hype
The NFT space can be tricky; there’s so much hype involved but buying into the hype isn’t the best idea. The buzz in the NFT space can be for different reasons — A lot of celebrities nowadays are releasing their own NFT projects. Initially, these projects will generate a lot of hype, but they’re usually just cash grabs. That’s why it’s crucial to do your research and find out the reason behind the hype for specific NFT projects. Temporary hype dies out, and you’re left with a project that has plummeted in value. When there’s hype around a project, it’s worth checking out, but don’t jump the gun and invest in it without knowing the reason for why there’s excitement around that project.
Don’t Buy NFTs You Don’t Really Support
Support is one of the most fundamental aspects of the digital community. Project owners and brands are essentially creators that are releasing digital assets. In order for these creators to properly execute their roadmaps and achieve the vision they have for their projects, they need support. That’s why in the NFT space, it’s best you choose projects that you genuinely want to support because you enjoy it or gain value from it.
Don’t Believe In Anything That’s “Too Good To Be True”
We’re all aware of the age-old adage, “It’s too good to be true.” The same applies to the NFT space; if an offer or project seems too good, it probably isn’t true. A fair amount of skepticism in the digital community is healthy because it allows you to find out what’s real and what’s not. Again this ties back into doing your research — never make decisions without adequate research.