But what makes an NFT blue chip? And how do you spot a blue-chip project early? We’re here to discuss and answer these questions. And so, without further ado, let’s get down to it!
What Makes an NFT Blue-chip?
For the masses, a blue-chip NFT project is something that is financially reliable, performing consistently well on the market.
Usually, you’ll hear about a certain NFT that has amassed public attention with skyrocketing prices. And those who have invested and put their faith into it early on increased their investment portfolio by several folds.
One good example is Crypto Punks. Everyone seems to agree that Crypto Punks is the OG NFT that opened that gateway to what we now know as NFTs. After all, it was the one that popularized the concept of owning digital arts through blockchain’s smart contracts.
Crypto Punks’ unique aesthetic design caught the attention of early investors, which led to its explosion on the blockchain. Since then, thousands of NFTs from different organizations and artists have erupted and are now competing for dominance in the NFT space.
How do You Spot a Blue-Chip NFT Early On?
Well, there are many factors that we have to go over to determine if an NFT project has the potential to become a blue chip. And by the end of this section, you’ll have a better perspective on what to look for when finding the next blue-chip NFT.
Project developers play the most crucial role in the success of their NFT projects. And you’ll need to put on some research to determine if the developers are worthy of your investment. Find out who they are to avoid being rug pulled, and see if they have a good reputation.
A famous artist stepping into the NFT space will have a better chance of succeeding compared to an unknown artist. And their artwork also plays a part in the value of these said NFTs.
An NFT project that doesn’t have any purpose is just as good as any other project destined to fade as soon as the hype dwindles. The project itself needs to stand out above the rest to receive significant attention from the public.
It needs to have other benefits like becoming a part of an exclusive club or an item that has a long-term utility for a game, enabling it to retain its value over time.
The supporting community of the project will help dictate the value of the NFT project you’re eyeing. And the community itself has to scrutinize, sharing valuable information and opinion on the project they’re following. This will lead to a better outcome rather than having a community that blindly follows everyone without doubting the project.
You also need to be aware of dummy accounts intended to make false reviews and advertisements for the said project. And if you ever find a couple or more fake accounts, you should take it as a red flag.
Last but not least, we have to talk about the exposure that the project is getting. Who is backing it up? What are their plans to market their project? If their answer is unclear, it might not stand up against all the other NFT projects.
The market competition is extremely tough. So no matter how good the concept, artwork, and the project itself is, without exposure and promotion, it’ll be a futile effort.
It’s a lot to take in, but if you’re serious about finding the next potential blue-chip project, you’ll have to go above and beyond to go over this tedious inspection.
This article is for educational purposes only and should not be taken as financial advice. And remember to always do your research and due diligence.