How to Find Profitable NFT Projects – Teen Blurb

Hundreds of new NFT projects are either being launched or discovered every single day. More and more companies, influencers, social media platforms and brands such as Nike are all beginning to incorporate NFTs into their business. Each project claims to be the “best”, “newest” and “most profitable”. 

CoinMarketCap reports that the sales from NFTs has reached over $19 billion USD with many users buying NFTs early – and then selling them for profit. 

Joshua Reiher, civil engineer-turned-nft enthusiast and founder of nft4noobs did just that by identifying an undervalued project, buying one of their NFTs for $7,500 which then appreciated to $100,000 in the span of just a few week! 

So, how do YOU pick a winning project like that? Joshua Reiher, breaks down the most important strategies to analyze new NFT projects and ensure you’re making smart and profitable NFT investment decisions to maximize your wealth.

“Picking a profitable NFT project can be difficult and requires some thought if you’re serious about seeing some profitable returns.” – Joshua Reiher, founder of nft4noobs

This article is not financial advice and – just like any other industry – when investing in NFTs it is important to do your own research and do not invest more than what you are prepared to lose.

Where can I find new, upcoming NFT projects?

Twitter is one of the best platforms to learn about new NFT projects through following prominent NFT pages. Twitter is where the majority of the NFT community reside. When asked about Joshua Reiher’s favorite NFT pages to follow, he recommended: @veve_official and of course @nft4noobs. You can also use websites like rarity.tools that list upcoming NFT projects.

Once you’ve found an interesting project – it is important to analyze it’s potential using the strategies below.

Joshua Reiher’s proven winning strategy when it comes to picking profitable projects begins with looking at the project’s perceived “hype.” It’s important to pay attention to a project’s follower count, engagement and activities across their Twitter, Discord and Instagram. A project with high engagement and thus a strong community, culture and following has a good potential for success. Twitter and Discord are particularly important to check for the project’s engagement. 

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Discord is a community-driven platform where NFT projects can create their own groups/servers where the project’s community can discuss the NFT project in detail.

Joshua Reiher’s hot tip: beware of accounts that “buy” their followers and thus are forging their “hype.” A good way to verify the authenticity of their followers is to check if their following count is roughly similar across all their social media accounts and proportionate to their engagement (i.e. if they have 100k followers but 10 likes on their posts, this is a red flag). 

That being said, you could find a winning project before it has hype however, this is extremely rare especially for beginners.

  1. The Founders are “Doxxed”

Hunting the next up-and-coming NFT project involves researching the founder or team backing the project. Ideally, the founder/s of a NFT project is “doxxed” meaning they are publicly verified. This is when the founders of the project are visible on the website with their social media accounts (Twitter, Instagram and LinkedIn accounts) linked. This transparency builds trust in the longevity of the project. 

  1. Feasible Project Roadmap & Sound Tokenomics

The NFT project needs to have feasible, realistic and clear goals, plans and strategies in place for the long-term future of the project referred to as their “roadmap”. This roadmap should include short-term and long-term plans for marketing and growth to ultimately increase the project’s long-term value. 

In addition to their roadmap, the project should also have solid tokenomic strategies in place to ensure long-term growth motives of the founders for their project. It is important to understand how much profit % the founders are retaining vs. reinvesting back into the project. When asked about ideal project tokenomics, Joshua Reiher responded: 

“I typically like to see at least 30% of profits reinvested back into a project however, ideally 40-50% for stronger projects.” – Joshua Reiher, founder of nft4noobs

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When scoping out new NFT projects it is important to consider if the project’s art is unique, is of a high standard quality and if it is “trendy”. For a project to be unique you would need to consider other projects in the market and if the current project looks similar or different. A real world example of this is the many subsidiary “Ape” projects that have been released following the iconic Bored Ape Yacht Club artwork. It is also important to consider the market trends for the style of art i.e. profile picture art (like that of Cryptopunks) vs. utility dominated art (like that of Gary Vee). 

  1. The NFT’s Utility & Rarity

Understanding the utility (real world value) of the project is important before investing. Both the project’s short-term and long-term utility must be considered.

In addition, the rarity of a project can be influenced by the number of NFTs released within the project and each NFT’s certain artistic properties or attributes. Releasing a small amount of NFTs can assist in stabilizing the floor price and the artwork containing a unique appearance, a certain style and properties (such as background color, eyes, clothes headwear etc) can increase the artwork’s value. 

Another strategy that Joshua Reiher typically uses to measure potential success for a project is volume traded in recent days or weeks. It is important to ensure that the project has a consistent history of volume traded (i.e. had multiple recent sales).

Want more of Joshua Reiher’s valuable insights or simply want to learn more about NFTs? NFT4Noobs is the best place for beginners to start learning about NFTs. With over 195,000 followers on TikTok, 23,000 followers on Instagram and 11,000 members in Discord, NFT4Noobs is becoming the #1 community for everything NFT related. 

You can find nft4noobs on: Tiktok | Instagram | Discord | Twitter 

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