Regarding NFT, he has always been a resident guest in our article, not only because of the hidden potential behind NFT, but also because there seems to be a pair of hands behind the scenes in this NFT world, OpenSea, Curry, ERC115, Vision China and Jay Chou have brought fresh blood to NFTs one after another, making the popularity of NFTs enduring and constantly rushing into our field of vision.
With the continuous deepening of people’s understanding of NFT, the form of NFT deposit certificate has also continued to develop, from the initial tokens to avatars, music, video clips, to domain names, memberships, physical or virtual real estate There are many kinds, which can be combined. Technology is also increasing, GAME+DeFi we get GAMEFi, DeFi+NFT we get WHALE, MEME, Aavagotchi, Dego, Yinsure, Cryptowine, etc. are the so-called combination product of DeFi+NFT, full of infinite possibilities waiting for us excavated.
After that, some institutions or companies were derived. The main business is to help enterprises to go on-chain, blockchain, and NFT mint, and then various and strange NFT projects appeared. Just like the beginning of the Internet era, many companies are committed to helping traditional Like the transformation of enterprises or industries and the Internet, although it is understandable to follow the principle of existence is reasonable, there are more and more investment opportunities for investors, and it becomes more and more difficult to invest in valuable NFTs over time. , or a pit step by step.
At this time, let’s take a look at the thirteen dangerous features of NFT projects compiled by William M. Peaster at bankless. When you are exploring new NFT projects, you may wish to refer to them, keeping in mind that these features may be able to bypass us. some unnecessary investment risks.
Feature 1: Unfounded casting pricing
There is a large “reasonable” range for NFT mint prices because of its potential, and there is no single right answer to this. However, if a new team charges significantly more mint than its similar projects, it may indicate that their starting point is more to take your money than other projects of the same type.
Feature 2: Suspicious social media activity
An NFT project party suddenly sends you a message to direct your attention to an upcoming NFT sale, like you saw an advertising tweet about a few hours ago. For a circle such as NFT that is not completely open, if you find that a new project is not followed by the people you follow, but this new project has a large number of followers who are not even in the circle. This is a red flag feature! Because good projects don’t get personal attention through private messages or using Web2 ads, they have natural traffic, don’t need to buy fans and create fake data.
Feature 3: Deliberately maintain the floor price
If in the process of learning about a certain NFT project, it is found that the leader of one or more projects constantly expresses and strives to maintain the floor price of this NFT, this is a red flag feature! Such behavior may simply be following an established financial plan with little real interest in the NFT’s cultural values or community. Such ulterior motives will bring trouble to the project they are concerned about in the future, so they should be careful.
Feature 4: Low Quality Art
If an art project looks like it was conceived and completed within an hour by the Fiverr content platform, then it is likely to be something like this, although everyone’s aesthetic level is not the same, but if the NFT team itself does not take it seriously What they create, we can feel it, there is a huge gap between tasteful/charming/funny/weird minimalism and vulgar trash, and you need to do it right. judgment.
Trait 5: Too optimistic
Did the creators of the new NFT collectibles say their work is “blue chip quality” and will be the next Bored Ape Yacht Club? Is the project’s roadmap a metaphor for going to the moon, or does it claim something outlandish, like claiming it will be the first true lunar NFT marketplace? Avoid pure rhetoric.
Feature 6: Completely anonymous team
There is nothing inherently wrong with having a completely anonymous team, people have a right to privacy and in many cases the quality of the project and codebase etc will speak for itself. However, in the worst case, completely anonymous teams can cause serious damage, such as disrupting liquidity, and then have little liability.
Feature 7: Lack of track record
If an NFT project team lacks seasoned NFT veterans, the project is more likely to be eliminated.
Feature 8: No auditing
Audit reports from security companies are not perfect, but they do provide some basic security checks. If you’re in Web3, you want to use audited DeFi and NFT projects, because unaudited infrastructure is easier to attack or exploit. The problem is that every audit firm has been inundated with demand lately, and some new NFT projects don’t want to wait forever, so take the opportunity by launching unaudited infrastructure. We, however, should treat such projects with appropriate caution.
Feature 9: Bad Design
A poorly designed project can lead to bugs, inefficient gas, exploitable mints, and more. Measuring bad code etc. is difficult for newbies and a lot of non-technical experts, so following those who know what to do and learning from their judgment will be key.
Feature 10: Abusing Discord
One worrying situation is that the NFT team chose to ban his Discord account when a community member asked a legitimate question. You want to see projects that are inclusive and forthright, rather than aggressive and secretive. There is no good reason for the team to abuse their moderation duties.
Feature 11: Sell Whitelist
A new thing I’ve seen recently is that NFT teams are selling their NFT minting whitelist, it’s just a cash grab, plain and simple, and I personally don’t see any legitimacy in it.
Feature 12: Failed to pass Etherscan verification
Verifying your code with Etherscan assures the public that it is working correctly on Ethereum. The use of unverified smart contracts means that you have no basic performance guarantee, so this is something you must pay attention to during your NFT activities. For example, you can see how the Cool Pets smart contract is verified by its selected state. Be careful with items that don’t have a similar checkmark.
Feature 13: Bad Ownership Distribution
Suppose a 10,000 total PFP avatar project catches your attention, but when you look at its OpenSea collection page and notice that the ownership of the project is distributed among hundreds of addresses, then you must be careful, This means that these individuals can have a significant impact on this collectibles market.
Some of these dangerous features have a great impact, such as the abuse of Discord; while others, such as the complete anonymity of the team, are not absolute security risks, but they are also worthy of our attention; in general, the value behind NFT The logic is still traceable, and now it is not limited to the added value of artistic value, scarcity, circulation value, membership rights, etc. It is good at finding problems from the dangerous characteristics of these NFT projects, causing alertness, and thus Avoid these risks so that we can conduct NFT activities more savvyly.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/pit-avoidance-guide-stay-away-from-nfts-with-these-features/
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