All these cool widgets and embeddings you like because they “better” your site will slow down your site, and that’s bad for both UX and SEO. Reduce the number of fonts and mercilessly trim features that are only relevant to you. People allow a lot, but slow site speeds tend not to be overlooked by humans or search engine crawlers. In September 2020, Google completely switched to the Mobile First Index.
Apoorv Gupta
CAPHIQ | Venture Capital Venture Capital Venture | EKA Network
When entering the NFT market as a new entrant, you will most likely encounter many NFT projects that sound too good and untrue. Whether the experience is close to zero or years, people tend to ignore these easy-to-remember danger signs that help separate promising NFT projects from dubious projects.
In order to participate in the suspicious NFT project and not make these big mistakes, we have collected the top 6 warning signals to never ignore.
1Undoxxed team
If you look at the project website and don’t have a link to your actual Instagram, Twitter, or LinkedIn account, don’t buy an NFT to prevent potential scams.
The doxxed team adds a layer of trust that there are real people building real projects, regardless of skill set or background.
recommendation: Ask their discord about why they don’t contain personal information. If they can’t provide an answer that meets your criteria, stay away.
2. Fake Twitter or Discord followers / accounts
There are many sources to chat on behalf of your team on the Discord server. For example, Fiverr serves a message for $ 20 per minute per hour. Various websites such as GetViral sell Twitter followers for little money. This can create the illusion of a trusted follower.
recommendation: Perform a simple audit. For example, use Twitter Audit. Examine the post’s engagement to see if there are only real people or bots. If your account has 120,000 followers and only 50 likes, it’s a red flag. Also, make sure that the person you are interested in is following your account.
3. Artificial hype
Most dubious NFT projects often buy celebrity endorsements to create unrealistic promotions around the project. Entertainment celebrities like Chiago Silva can be hired for a ridiculous amount of money to get people’s attention on a rough project.
recommendation: It is highly recommended to conduct a survey. Find out if the partnership is officially approved or if you are just paying for a “partnership”.
4. Unrealistic mint price
Pricing based on hype is certainly a real problem in the field of NFTs. The golden rule for identifying suspicious NFT projects is to analyze their mint prices. Behind the high mint prices are almost always a combination of hype and FOMO, which makes prices unrealistically high. Many projects have no substantive price backing and rely solely on “influencers” to raise prices. As a result, you will invest money in these projects for FOMO and lose everything when the hype is gone.
Real community builders start mint prices at a reasonable level and don’t draw all liquidity from the market. Just because an NFT project can demand a high price does not mean that it needs to be done.
recommendation: A project that allows the original Minter to participate in an affordable way is to help loyal supporters of the project survive the storm and calm. Conversely, projects that mint at ridiculously high prices often find it difficult to find support during difficult times. Therefore, it is important to invest in a project that you really believe in.
5. Predatory tactics
Floor sweep: Setting the lowest price in the NFT world means that a particular project will buy all the mint NFTS at the lowest price. The lowest price is the lowest “ask” or lowest price that an NFT can sell in the secondary market. This is the most common metric for tracking project performance over time and its relative success compared to other projects. As a new project, floor sweeps can be a way to attract new entrants by guaranteeing a low entry point.
Ban on members: Another predatory tactic to watch out for is to ban members by listing them below the price. This means that project members have been kicked out of the community by selling NFTs at a much lower price than the project’s fish owners approve.
Echo chamber: The big red flag is the presence of the echo chamber. It is an environment in which one encounters only information and opinions that reflect and enhance oneself. This may limit the information consumed by users and facilitate ideas related to NFT projects.
recommendation: Get out of the chamber (Discord, forum, etc.) for a few days. This will help you clear your head and make better decisions.
Other popular danger signals to watch out for are all sorts of harassment, threats and piggybacking on popular projects.
6. Methache
Care should be taken if the project brings little innovation by introducing iterative meta or roadmaps. This can be a disturbing indicator that a project is most likely to spend your money to cover its own interests. In addition, if the project cannot address legality concerns regarding securities and token insurance, consider terminating the project.
Meta can be easily copied and tokens can be activated in a few hours. On the contrary, the real economy takes months or years to create.
Lack of ability to create proper tokenomics or P2E for sustainability and longevity is also a worrying measure. For example, Bored Ape Yacht Club owners can join BAYC’s exclusive clubs and areas. This is a good way to think about the future and earn the trust of people.
Tokenomics: The goal of tokenomic analysis is to understand the potential value of a project, taking into account all aspects of token creation and management, including token supply, allocation, and distribution. The reason that tokenomics is so important is that it helps to identify the future value of an asset by giving insights into the profitability of that asset in the future.
P2E (Play to Earn): Indicates the type of game that depends on NFT technology. For example, gamers can make an initial investment in NFTs to play video games and virtual worlds for rewards.
Identifying these warning signs can be a long and difficult road to separating a real NFT project from rapid cash earning, but understanding its importance guarantees success. Unfortunately, there is no blueprint to follow in this new industry. That is, there is no right or wrong way to approach a project.
Start by looking for a niche and team that has the ability to do it. Find out who the founding team is, how they work, what their values and grand vision are. If they show a lack of respect, transparency, or communication, consider moving on.
