One of the first aspects of projects you should look for when choosing an NFT collection to back is the community behind it. Ultimately, community is a major part of the industry, and for multiple reasons.
The most important reasons include:
Supply & Demand
As is the case with other assets, NFT prices are driven by the law of supply and demand. By nature, NFTs have a limited supply. So, the real part of this equation to look at is demand.
As demand for a collection starts to increase, so too does its price. On the other hand, when demand is down, collection prices start to increase.
The size and activeness of a community point to the demand for the NFTs within the collection. Of course, a larger, more active, community is a signal that demand is strong while a minimally active, small community is a sign that demand is weak.
The NFT industry is a very new one that evolves day by day. Leaders in the industry are generally friendly and willing to help the newcomers. This is especially the case when you’re in the same community as those leaders.
Larger communities offer more, knowledgeable, leaders to connect with.
As a result, it’s important to choose an NFT with a large community backing, especially if you’re new to the industry. In doing so, you’ll have plenty of people who know what they’re doing and will likely be willing to show you the ropes.
Example of a Strong Community
One of the strongest communities in the NFT industry is the Bored Ape Yacht Club. The community is made up of NFT enthusiasts, early Bored Ape adopters, and a long list of celebrity NFT collectors.
Of course, if you’re new, accessing the Bored Ape Yacht Club will be difficult because the club is cost-prohibitive. However, before BAYC had a massive floor price and massive celebrity following, it was a popular community among NFT collectors.
The best thing to do is to look for other communities that display the same characteristics the BAYC community displayed in the beginning. Here’s what you’re looking for:
- Size. The community should be large. Take a look at the community’s page on Discord and do a search on Twitter to verify the idea that there are people watching.
- Activity. The community should be highly active. When searching on Discord and Twitter, pay attention to how actively members of the community take to social media.
- Meaningful. Finally, look into the discussions the community is having. Are the discussions meaningful? If so, you’re likely on the right track!
That’s All for Today
That’s all for today, my friends. Come back next Thursday for the next lesson in this chapter, Learning About Who’s Behind the Project!