Back in February I decided to start loking at NFTs and the whole ecosystem. It has been a wild ride until now, and I have no plans to stop anytime soon.
From now on I will try to publish a story a week so I can help people recognise good and upcomming collections in the Solana Blockchain.
I want to share tips on what to look out for when buying into a specific collection. So let me sum up my experience so far.
Back in February the main NFT collection (Still to this day) was Bored Ape Yach Club, known as BAYC. BAYC was minted in th Etherum Blockchain, and they have been sold for around $500k and more. BAYC is a community driven collection and worldwide brand now. Celebrities like Eminem, Snoop Dog, Jimmy Fallon and Neymar hold at least one of them.
Obviously I coudn't afford one, and the Etherum blockchain has very high "gas fees". I liked more the idea of the Solana blockchain as the fees are minimum and it's a fast blockchain.
So as my first NFT I jumped into Bored Ape Solana Club, a derivative collection not affiliated with BAYC. I didn't do any research behind the collection and I genuinely thought they were the same as the ETH chain.
I paid 3.5 SOL for a pink ape, back then about $360. At first I felt very proud to hold an NFT, something new and upcomming. I joined the discord and started chatting to my fellow apes, met a bunch of very smart and interesting people. But slowly realised the guy behind the collection was making vague announcements about what's to come, and beeing everyday less active. That was my first red flag and shortly after the adming took all the funds, closed the discord and left.
That was also my very first "Rug". Meanwhile I bough a bunch of other NFTs that looked good to me, like 6 Rings (collection from MJ son), Atadia (Data driven collection) and Drippies (Branding and educational collection).
I joined the discord of every collection I hold, they looked good and active so I holded all of them.
Up to this day I still hold some of the collections I bought back in March as I truly believe in the long term vision of the projects.
When buying NFTs you should be asking some questions:
- What's your plan with it? Hold it long term or make a quick flip?
- Why are you buying into the project? Art, community, Utility?
- What is your exit number? Unless you want to collect and never sell, everyone is there for a profit. Remember to take your profits.
- Is it the right time to buy? Will the collection dip in the next few days?
Since February I have seen many collections going very expensive and also many "rugs", I have seen the market crash and the value of Sol going from $140 to $25 and how that affects the NFT ecosystem.
Until my next article I would like to ask my readers to check the Magic Eden website and have a look at what it's going on and pick 2/3 collections that you like for whatever reason, maybe art? Go back in 2/3 days and check it again, do you still feel interested in that project? Do you think the collection can do good?
Feeling play a big part in any investment you can make, NFTs are no different.
I will be going trough more points and tips in the nexts articles, If you feel interested please subscribe. It's going to be a wild ride, WAGMI.