NFT Investment Tips: 6 Warning Signs To Keep Note Of While Buying NFTs

Non-Fungible Tokens have gained a remarkable position since they hit the market. As of now, there are approximately 360,000 NFT owners around the world. In the NFT space, apart from individual creators, even well-established enterprises display their work. 


NFT Investment Tips : 6 Warning Signs While Buying NFTs

NFT Investment Tips

One can find many NFTs in the categories like art, music, pictures, real estate, etc. However, irrespective of a person’s investing experience, they may fall for shady NFT projects. These kinds of projects are only to steal money from the investors without their knowledge. 


Here are the 6-warning signs one has to look out for before investing in an NFT project. Let us get going!


  1. Dishonest / Missing Information

NFT ecosystems are no exception to scammers. An investor must visit the project website and cross-check its social media handles like Instagram, Twitter, and LinkedIn. If no info is present on the site, it is good to step back from the project. 


Investors can request the NFT owner to provide all the information regarding the project. If they fail to give those details, it is a complete ‘no-no.’ 


  1. Fake Social Media Followers

Social media has a significant role in an NFT. Thus, many fraudulent NFTs use bots and illegal ways to gather fake social media followers.


An investor must conduct a quick audit to find whether the followers are legitimate or just bots. Also, check the post's engagement details to ensure the followers' authenticity.


  1. Artificial Hype

With the help of a potential influencer, a shady NFT can create a self-made hype in the marketplace. Thus, investors should confirm whether the influencer is an official partner or just a paid promoter. Using such clickbait partnerships, they can easily attract customers. 


  1. Predatory Tactics

The echo chamber is one of the techniques that fishy NFT owners use to earn from the investors. These owners will spread biased opinions to the participants using social media networks. If any users raise their voices and oppose their statement, they might get removed from the community. 

Sometimes, fake NFTs use floor sweeping and buy all their tokens at a base price. As a result, when these tokens are listed on a secondary market, the minimum cost will be equivalent to the base price. 


  1. Meta Cliché

An NFT project should consistently provide roadmaps or metadata. If it fails, keep a distance from it. Moreover, illegitimate owners can make use of copied meta that can be prepared within a few days or hours. On the contrary, the metadata of proper NFTs will take months or years. 


Make sure that the NFT project has a roadmap in a feasible form and not an over-promising one. Generally, fake NFTs will use a set of impossible deliverables in their roadmap. 


  1. Unfair Mint Price

The best technique to filter the illegitimate NFTs is to check their mint price. 


Usually, the most-hyped tokens yield a good profit in the NFT space. It is because of two reasons FOMO and publicity. Unfortunately, when the hype goes down, those NFTs will vanish.


Just because a token has hype, it should not increase its price. Legitimate creators will always fix a reasonable NFT price. 


Also Read : Top 5 Reasons For NFTs Being So Popular


NFT investment is quite popular these days and can yield a good return in the future. Anyways it is good to keep these red flags on your mind. If you are willing to create a feasible non-fungible token, contact the best NFT project development company. 


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Blockchain, NFT Marketplace development, NFTDevelopment, NFTprojects, NFTcommunity, NFT investors.

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