Whether you are just beginning your journey in the NFT community or a veteran in the space, everyone is looking for excellent NFT projects to get involved in. But how do you know whether an NFT project will be successful, worth getting involved in, or investing your hard Eth into?
From my two years of research and experience in the NFT community and nearly eight years of experience with blockchain technology, I have found two essential elements that will either make or break NFT and Web3 projects: Community and Utility.
Let’s start with community, and there are two community elements when it comes to a project: The internal community and the external community. The internal community consists of the founders, managers, marketers, etc. First and foremost, transparency is critical. Knowing who is behind a project is imperative, as anyone involved in a project should be open and honest about who they are. When a project is full of anonymous members, it can sometimes be a red flag which may be an early signal/indicator of what is known as a ‘rug-pull’ or, in the crypto space, what is called a ‘pump-and-dump.’ Typically, when a project is being secretive about its internal team. The founders’ identity is unknown; it may be because there is something to hide. While that may not always be the case, it has often been. So full internal transparency about who is behind a project and who is running it is a good sign of honesty and transparency. Knowing who is behind an NFT project is essential for the buying process. Also, see if a committed team is diligently working on a project. The internal community of a project (the community moderators, managers, etc.) is crucial because it means that the project is dedicated to its community and ensuring everything is delivered and executed correctly.
Recently I had the pleasure of getting involved with a project called Royal Goats Club; Royal Goats Club is an NFT project whose focus is to reward their community and provide actual value and utility to their holders (I will touch on utility more soon). The thing that impressed me was that Royal Goats Club had a mission to launch an NFT entirely based on utility and community, and on top of that, they planned on hiring and employing people (like mods and managers) to help run and manage the project, which to me meant they wanted to create an internal team that was rewarded and compensated for their hard work, (as opposed to trying to get a team to work for free).
I sat down with Shuja Pakhliwal, the founder and imaginer behind Royal Goats Club, and he essentially told me that:
“We want to focus on building and rewarding our community.”
and Shuja also said
“I want to make sure we have a strong internal team that is rewarded for their hard work and that we constantly reward our external community and provide our holders true value.”
Royal Goats Club is a prime example of a project built on a foundation of community focus and utility. Current and future success is entirely dependent on the community behind it, especially in the Web3 and NFT space when it comes to ANY project, brand, or business.
Utility is essentially defined as the value provided as a perk or benefit supplied by having (or holding) something. An example of utility in an NFT project would be anyone who holds/owns an NFT being allowed to attend certain events, parties, or performances for free because they have a certain NFT (BAYC is a prime example of doing this; e.g., free concert tickets for BAYC holders). During my time with Royal Goat Club and other web3 projects like Vimpto Worlds, I have firsthand witnessed that all the best projects provide their community utility. While one essential core utility of any great project can be the community itself, a project that genuinely cares about its community by providing utilities and rewards for its holders is always a good investment. For instance, with Royal Goats Club they are giving everyone who mints an exotic goat a trip to the Bahamas paid for by the project, and everyone who mints a Royal Goat will also be invited to a holder only chat where holders can connect with each other; and according to the Royal Goats Club website some additional utilities include: ⦁ Airdrops- The first 2500 minted Royal Goats will be air-dropped Royal Does (female goats)
⦁ RGC Token Airdrop – Every holder will receive the RGC token and will be allocated per Royal Goats NFT they own. This token will be the minting currency for the new NFT marketplace.
⦁ NFT Marketplace- In an industry as nascent as NFTs, there is plenty of room for growth and innovation. This marketplace aims to facilitate that growth and pave the way forward by creating an ecosystem where anyone can contribute projects to expand this industry even further. It will have a cross-chain protocol that would allow for transactions between separate blockchains; users will be able to transfer NFTs from different decentralized applications (dApps) and much more. The holders of RGC NFT will NOT pay any transaction fees and will have premium listings.
⦁ IRL Event – Each holder is entitled to join us for an exclusive NFT event in Hawaii (which will be free for holders)
Utilities are essentially benefits and perks given to and provided only to holders (people who own the NFT).
While not every great project will provide the same types of utilities, any project that cares about its holders and its community will provide perks, benefits, and rewards to its community and holders. The backbone of any successful project, artist, or brand, is its community; therefore, any project that cares about its community will provide its communities with rewards for their loyalty and support!
So, in summary, one can identify a great NFT project by its transparency, internal and external community, and the inherent utilities provided by the project. With these elements, one can identify promising projects and feel secure knowing that they are invested in a project that cares about them and the future plans of the project.