NFT project failures are a huge disappointment, whether it’s one you invested in or even your project. Losing money in this economy is one of the major things we are trying to avoid.
In this article, I’ll tell you a few reasons why your NFT project might fail and how you can avoid them.
1. Your NFT Has No Value:
One of the main reasons anyone will want to purchase and invest in NFTs is because they recognise their value. Yes, some people buy NFT art pieces because they want to support the artist, but not many people will do that, especially when the artist is not some big-name influencer or celebrity.
It is not enough to just turn anything into an NFT; you have to think, will people find value in this?
Many projects fail because they think NFT is a get-rich-quick scheme, and all they have to do is draw up something simple or turn something extremely basic into an NFT, and they are shocked when their sales do not turn out how they expected them to be.
When creating NFTs, you should put value in mind because people only gain an interest in something when they find it valuable.
2. They Are Premeditated Rug Pulls:
Will you be shocked if I told you that some NFT project failures happen because they were designed to do so?
According to nftnow.com, A rug pull scheme happens when crypto developers attract early investors to a project and then quickly abandon it.
We have witnessed numerous rug pulls over the years, which has left people losing hundreds, thousands and even millions of money.
3. No Community:
One thing I love about the internet nowadays? There’s a community for everything! An online community is a group of people who share similar interests in the same field or industry. On the internet, there are various communities ranging from careers to hobbies.
Recently, we have seen some NFT-based communities, some for the NFT industry in general. At the same time, some solely focus on a particular project during and after launch to build and maintain anticipation and growth.
There are many channels to build your community, like Facebook, Twitter, Discord, etc.
4. Little or No Marketing:
It is not enough to just churn out an NFT project and hope it blows. Even NFT projects require marketing efforts. How do you expect people to discover your project, gain an interest in it and actually invest in it when you do not promote it? Advertising and marketing are also very vital in the NFT space because millions of NFT projects are on the internet, and you need yours to stand out and get to the right place- your target audience.
Invest in good marketing efforts to promote your project.
NFT projects are not as easy as it looks. It goes way beyond creating the most beautiful NFTs. You can do this, and it might still fail.
The NFT space is tricky, and projects fail for various reasons. By keeping your eyes and ears out for red flags keeping these tips in mind, it becomes easier to navigate this space. Good luck!