In 2021, a longtime friend of mine caught my talking about NFTs and decided to take the plunge himself. This was his first time using crypto outside of CEX, and so he had to figure out how to navigate MetaMask and everything that comes with self-protection of your own assets.
It was sold at the end of that year, while I mostly stayed with what I had. You can argue on that merit alone that he is smarter than me. However, after some time away, he is now interested in getting back into NFTs. This prompted him to WhatsApp me a few questions to quickly learn how to best prepare.
These questions will probably be of benefit to anyone you know who is thinking of re-entering this madhouse or even just exploring it for the first time:
Which are the best platforms to buy NFTs?
In the past, OpenSea had a monopoly as the only NFT market in town, but the landscape has changed a lot since then. While OpenSea is on, they are no longer the most popular. Blur.io revolutionized the NFT trading game (for better or worse) with token airdrops and gamified features on its platform. For example, bidding on top collections will earn you Blur Points, which is the same as joining their loan facility – although the latter is highly risky.
That said, controversially, Blur introduced optional royalties for sellers. While this benefits the NFT seller, the long-term effect has proven to be detrimental to the creators and the general condition of the NFT market. There has been a response and it appears that several markets are emerging to counter it.
Magic Eden comes in as a solid third option, especially as they are the No. 1 Ordinals (Bitcoin NFT) marketplace.
What should I keep in mind while building a project?
- Casting Cost: The recent bearish market has affected projects that thought they could charge 0.5 to 1 ETH for minting. In the current environment, very few people are willing to mine at such high prices. So, if the cost of casting is that high then good luck trying to make a profit.
- Community and Social Engagement: Is the community active? This is a major factor. Gauge the popularity and anticipation surrounding a mint by performing deep searches on Twitter. What is the stir in their discord? Is it deserted? Or is it full of enthusiastic Moonboys predicting, “Gary V will buy soon, paperhand will regret!”? Frankly, both extremes are worrying.
- Identity of the Founders: Are the Founders Confused? You are less likely to reach hell if the project is associated with real names and IDs. Still, there are exceptions to this otherwise sensible rule. Some globally recognized corporations that have entered the Web3 arena have made their entry into it, struggling in various aspects.
Speaking from my own experience handling a very well known ‘luxury’ fashion brand NFT, I recommend caution when considering investing in companies that lack web3 experience, fail to understand the culture, and Struggles with meeting deadlines or communicating effectively with them. holder.
Aren’t NFTs dead though?
To the outside world, yes, it looks very dead! Alas, Paris Hilton is no longer performing her Bored Apk on The Jimmy Kimmel Show. No no, instead we are all but the butt of jokes and give 2023 branded answers to Beanie Baby buyers:
No kidding, NFTs were the stupidest bubble in history. Even more silly than Tulips or Beanie Babies. They were literally digital receipts that said you alone owned something that everyone else had.
It’s a shame that Silicon Valley was going so hard on these.
— Matt O’Brien (@ObsoleteDogma) 22 July 2023
However, this is where people get confused and easily swayed by mainstream opinion. The NFT market may be stable for the time being, but that’s just trading volume. NFTs as a concept are far from dead. In fact, it’s still so early that many people are clearly not seeing the obvious.
For example, NFTs are so important in gaming that it is almost impossible not to integrate them at some point. Gamers pay billions per year on games and in-game assets, and yet they don’t own assets in the web2 gaming industry. NFTs will change that, and this is just one example.
How do I keep my assets safe?
Here is an article I wrote a while ago on this very topic: “5 Easy Ways to Keep Your Crypto Secure”
However some quick ground rules:
- Make note of your seed phrase and store it on paper, never digitally! Web3 has no customer service hotline, so if you lose access to your wallet and don’t have your seed phrase and/or password, no one can help you
- Treat every DM from a stranger as if they are trying to empty your wallet. Never click on links from people you don’t know, and even then, be extremely careful with links from people you do know
- use hardware wallet For large volume/high value crypto or NFTs. The $100 or more you’ll spend on that extra layer of security is well worth the peace of mind. I recommend laser.
My dear friend had another question that doesn’t quite fit in this article: “What are the top 5 projects to hold/buy during a bear market?” This is a discussion to go deeper into in its own article, as it highlights what has faltered and which categories have risen to prominence following the recent PFP turmoil.
For the past few years PFP dominated, in fact nothing else was even close to it, but everything has changed recently….
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