To understand what a good NFT project is requires one to consider what is encompassed in the definition of “good.” For different people, this can mean different things, and what is good for one may not be that appealing to others.
Generally speaking, however, a good project is one that has staying power and provides the owner with some benefit over the long term (either financial, or other tangible benefit) including beautiful art, access to a community, access to other perks such as discounts to events and merchandise, early access to events or NFT launches, support services, potential financial and/or NFT benefits also.
Without setting a framework for what makes a good NFT project, the following things are generally more likely to lead to successful projects, that those in the NFT space wish to be part of:
Doxxed and Experienced Team:
A team that has shared their true identities and experience will often (though not always) give project holders confidence about a project’s trajectory. When things are not going so well, it is harder for a doxxed team to completely walk away from a project compared to one that is anonymous.
Exceptional Art or Utility :
Grouping these two seems natural. Some projects have spectacular art styles that live as brands and aim to do so over time, and others have utility, such as access to a website or online tool, or a community that shares alpha (intel) on projects, for example. These are not mutually exclusive either. There are projects that have both great art and utility, and these are the ones that tend to succeed over time.
One that has a roadmap and goals/ values that you can support :
The feeling you get when you are supporting a cause or a movement that means something to you is not easily replicated.
Sound Financials :
Is the project going to be able to do what it intends on doing? Are the plans too ambitious based on support/ community activity? Do the numbers add up? Having a project that has a way of continuously fulfilling its roadmap, adding roadmap items, being able to do what is shown on the roadmap and execute to a high degree are all benefits to holders of projects that are well run.
A Strong Community :
Having a community of holders and followers that are passionate about a project can lead to a feeling of being part of something fun and exciting. Where there is demand from those on the outer to be on the inner, those lucky enough to be part of a project’s holder base are able to reap the reward of being known as a holder not just within that community, but other projects aspiring to be at the same level.
Having a community of holders and followers that are passionate about a project can lead to a feeling of being part of something fun and exciting. Where there is demand from those on the outer to be on the inner, those lucky enough to be part of a project’s holder base are able to reap the reward of being known as a holder not just within that community, but other projects aspiring to be at the same level.
Another thing to remember is that the “Community” of holders determine the price point of the NFTs. The projects will do all the work in executing roadmap initiatives but at the end of the day, the price of the NFTs on the secondary market are determined by the holders.
While the above factors are not necessarily the only determining factors for good NFT projects, a lot of very healthy projects have most, if not all of the above traits. But as usual, with anything in the world of NFTs, it is always important to Do Your Own Research (DYOR)