A crypto investor shares his 6 top tips for investing in the next NFT coin craze and the next big trend he thinks is playing out the productive art and taking over the industry.
NFT market entry
According to Reuters, Non Fungible Tokens (NFT) gained widespread popularity last year, with sales reaching $25 billion. As we covered in the news of Kriptokoin.com, pixelated images that can be easily downloaded for free are sold for millions of dollars as they are created as unique crypto assets. For example, an NFT known as ‘Covid Alien’ from the CryptoPunk collection was sold for $11.75 million.
The widespread popularity of NFTs is in line with the overall peaks seen in the crypto market. Last year, there were two short and steep bull runs for crypto in April and November. However, 2022 has not been so generous for digital assets. According to Statista, the total number of NFT sales on the Ethereum Blockchain in March fell almost 80% from the August 2021 peak.
A crypto investor and influencer with over 1.1 million followers on TikTok, Mason Versluis has been investing in crypto since 2017. Last year, while the industry was still hot, he decided to play his hand in NFT trading. “I bought this whole trend and came out net positive,” Versluis said. I made a lot of money from this but also lost or invested in some NFTs that I can’t currently sell. “There is no one to sell them to,” he says.
The next big trend in NFT coin projects
Versluis believes NFTs are still a great investment as they can be translated for high returns in a short time. Additionally, NFT investors are extremely early compared to the crypto market, which gives it a lot of room for growth. Versluis is betting that the next big trend will be membership transitions.
But it doesn’t mention golf courses or nightclub memberships. Versluis says the special term currently used is ‘alpha pass’, noting that it usually gives the owner access to a Discord channel where users share exclusive news about NFTs, perhaps even ‘secret’ information. Versluis opens it this way:
Some Discords will use tools like Nansen that monitors the on-chain activity of leading wallet addresses, or what the website calls ‘smart money’. It’s like seeing what rich people spend their money on. This could indicate that there is a secret you don’t know or something they know.
6 best tips for investing in smart NFT coins
Versluis says he received a Degenerate Ape Academy NFT in August 2021 at the peak of NFT sales volume . According to the project’s Twitter page, Solana was a popular collection of 10,000 cartoon monkeys that sold out on the Blockchain in eight minutes. The cheapest NFT in this collection is currently listed for 87 SOL, which is the equivalent of about $9,800 relative to the SOL’s last trading price of around $113.
“Popular NFT coin projects can run out in minutes. Knowing what to look for and where to find information is the key to getting started early,” says Versluis, emphasizing that you must first believe in the founder of the project. If they have built other successful businesses or projects, this will be a good indicator of future success.
Second, Versluis points out that you should also look at the team and find out who the founders chose to run the project with them. A big question to ask is: Are there any known scammers on this team?
The Department of Justice recently accused two NFT creators, Ethan Vinh Nguyen and Andre Marcus Quiddaoen Llacuna, of fraud and conspiracy to launder money. The duo released a collection called ‘Frosties’ but disappeared within an hour of publication. The collection, consisting of 8,888 pieces, sold over $1 million.
Twitter and Google will be your sources for this research. Versluis says you should do a general search of a member’s name on Twitter and read the comments below their tweets and even the comments mentioning their name. You can measure the general perception of the community about the founders. In addition, they have to verify their identity. In other words, it is necessary to see whether they have sent the information confirming their identity to a verification platform or shared their photos and names publicly.
Third, see the community. Versluis says, “You’re basically looking for principles like the mood of a cult. That’s all I’m looking for, does this feel like a cult?” says. If people are constantly interacting on the Discord channel or their images on their social media profiles are somehow representative of the community, such as on an NFT as their profile picture, this indicates a strong and active community.
Fourth, act early. NFT coin projects can drop more than once, but Versluis says the first release, also known as Genesis NFTs, is usually the highest valued. So-called NFT investors who don’t have access to Nansen can use other ways to gauge an early release. Versluis also uses a tool called NFT Scoring, which is a live list of the latest trending projects. He also recommends checking out NFT Calendar and rarity.tools, which provide similar data.
Fifth, look for novelty in a collection. Versluis notes that this means the team is doing something no one has seen in the NFT space, or gaining access to something on a Discord that no one has yet accessed.
Sixth, don’t jump into every overrated project. “Each NFT coin feels like a project, a definite feeling that even someone like me with at least some experience in the market can feel,” says Versluis. Many collections feature great websites, beautiful artwork, and a solid roadmap. If you don’t control yourself, you can spend too much on NFTs. “This is a super risky market, you have to be willing to lose some money in it,” Versluis says. Also, if you don’t have a disposable income or if an NFT is outside of your price range, you shouldn’t buy it, he adds.
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