Thread by @DempseyNFTs

Thread on how to select an #NFT project to invest in 🧵

This thread is going to talk about the risks of investing and the points not to ignore when you put your money into an #NFT project.

Feel free to visit the profile of the sources I will quote, they are all competent. ❤️

Above all, the money you invest should not be vital to you! 🚨

Invest only what you are willing to lose, this advice is valid for all environments with the slightest risk.

Our ecosystem is quite young, so a lot of projects are launching on our favorite blockchain (I'm in love with #Elrond ❤️).

The fact that people are innovating on BC is a good thing, but keep in mind that not all projects are innovative, and some of them don't add anything.

The first thing to do is to get as much information as possible (digg) about the project that you are interested in. No matter how you got to know the name (beware of everyone, influencers or opinion leaders), you have to systematically check the points I'm going to mention! DYOR

Visit the different sources available; Whitepaper, website, twitter account, discord, telegram group.

There are not always all these elements but you should find at least 3 to 4 of these sources. This will allow you to find concrete information on the objectives of the project.

Find a great document explaining how to Digg a project: drive.google.com/file/d/1RMpRkl…

You can already look at the product and try to find out in what interest it exists. Will the nft unlock a character in a game? Will the nft give you exclusive access to a site? 🤔

In all cases you MUST find elements to justify their version: sneak peak, demo or devnet version.

Avoid projects that don't bring anything, it's useless to give your money to a project when their only goal is to redistribute rewards with DAO farming. In this case they take the money, put it in a farming pool on Maiar exchanges, and redistribute the interest generated to you.

If you are seduced by the product and the idea, seek to understand the vision of the owners. What do they want to develop in the future? What are their intentions? How does their ambition measure up? Check the roadmap at this point. 🗺️

You can analyze their social networks. Beware of accounts with a lot of followers that don't have enough interaction. Ex: an account with 5k followers that receives less than 10 likes on their tweets. This probably represents an account full of bot, trying to create a false hype

If you want a more accurate idea, discord servers don't lie. A group where members talk about the project and are involved proves the presence of a hype or not. Nevertheless beware of groups where the WL is promised for those who reach level 20... Spam messages like GM GN etc...

Make sure the collection is launched for the right reasons. NFTs reveal an innovative technology that allows creators to raise large amounts of money. 💰

This has brought in a lot of opportunists who are there just to make money off of people.

How to avoid them? 🤔

Make sure that their qualities and skills are consistent with what they want to create. 🧠

If you are told that a video game will be created with the funds raised but no one on the team is in charge of development, it may be because the team is not prepared for such a project.

If you like the product, if you have checked all the points discussed, if you have money to INVEST, if you share the vision of the owners and if you believe in them, then you can participate in the adventure. 🌄

Wishing you all success! 🌟

I hope you enjoyed the Thread, I definitely left some things out but I didn't want to overdo it either.

Feel free to #RT to share it with our beautiful #ElrondCommunity

Thanks to: @ovidiuarion who made a great thread too! 🧵
@GRM_Elrond /