Redflags I Consider When Minting An NFT

2021 has been a great year for NFTs and lots of people are grateful for the amount of wealth they were able to make this year, and lots people also lost money. My prayer still goes out to the man that sold his bored ape NFT for 0.75 ETH instead of 75 ETH, not related to what am saying but I can’t stop thinking of such expensive mistake.

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When it comes to online digital asset investments, being careful can save you a lot of money and heartbreak. I always tell people that the difference between a scam and a genuine investment platform is their motive. You won’t know because the scam platform can set things in a way that you will never suspect you are about to be scammed. So the best thing to do is do your own research and be sure your research check the list of scam activities you may know before you throw in some dollars.

We all know that when a genuine money making platform or opportunity is available, the bad ones are always there to make sure they take advantage of people’s naive FOMO attitude and rip them off. The NFT space is no different, so it’s best you check and notice red flags to be sure. If you do and you don’t notice any red flags and still invest and lose money, then 😕.

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Always Consider Checking The Team Behind The NFT
Any team that decides to be anonymous without proper sign of trust should be considered a red flag. Why don’t they want people to know who is behind the project they are investing their money on. A good reason could be because of their security. While checking for anything fishy about the team, also check if they have any experience in crypto. Not some noobs who are just looking for ways to rip people off so they hire some random anonymous crypto knowledgeable person to write a crypto tech script for them to play. These ones are obviously here for the hype and opportunity to take advantage of the naive FOMO NFT “wanna have” people.

Try To Know What The Invested Money Is Used For
When selling an NFT or rather when listing it, a particular % goes to the team behind the project. This way the team can decide what to do with the money to improve the value of the project. Especially when the NFT is a collection like Bored Ape Yacht Club. This year has taught me a lot about crypto projects and things to watch out for. One thing that gives me the red flag is seeing a project lacking innovations but the team behind it are living a lavish lifestyle. That means that the money being invested is used to fund the lifestyle of these con artists. Community with goals and vision drive the value of a project really high, you can’t ignore that and focus on living the luxurious lifestyle.
Take a look at bored ape yacht club, the team behind the project is always developing the community and project that’s the reason the NFT and the community in the club keep profiting off the NFT project. Giving more reason people want to be in the club by buying the NFT, thereby driving the value and price high.

Team Promising You A Guaranteed Return
This is a very big red flag, because NFT is not like crypto exchange where you can instantly place sell and the order will be executed. The NFT market place is a decentralized market place where after listing your asset, you need to wait for someone to find the asset valuable enough to want to pay the price you listed it. Sometimes it takes months, days or weeks before some one actually buys your stuff. And the floor price is usually based on who is desperate to sell theirs so low they list it the lowest in price. So any team that guarantees you a floor price is trying to scam you.

Less Development More Marketing
This has to do a lot with using your common sense. If all you see is the project all around you, that is they are doing well with advertising it but it’s crappy, then you should suspect something fishy. You cant be marketing something too good to be true and spending a lot of money trying to prove to people that it’s too good without working on making it actually too good. This is where we say it’s overly marketed, any where you go, you see the NFT brand, but yet people keep complaining on how crappy it is or talking about how the innovation and development is stagnant.

These are just few redflags i consider, you can add yours. Watch this youtube video for more

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