Dec 9, 2022 at 04:38Last week, we had a great real-time meeting with NFT creator Jet @jeditrinupab on our Twitter. We talked about NFTs as a trend, as an investment, or just a hobby.
How do we define whether this particular project is a scam and why Solana is better than Ethereum — answers to these questions and more are in the text below.
Q: Is NFTs a good choice for beginner investors?
A: It depends on which stage of life you are at and what percentage of the portfolio you are looking to allocate to NFTs. If you are at more or less a successful career level where you have a stable income and NFTs are 10% of your portfolio, it has the potential to do well in the long term.
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Still, NFTs are a high-risk market; that’s why if you consider NFTs as the main asset, I would encourage you not to invest more than you are ready to lose.
Q: Let’s say I decided to buy NFTs; what would be my first steps?
A: If you want to invest in any type of stock, you need to learn and understand the mechanics of how they work and know who and where you put your money in.
For me, the best way to learn is to join Twitter Spaces and listen. But there are other ways of learning: reading or watching. And, of course, even if you have heard about some interesting NFT project, it does not mean you have to buy it immediately. Just start gathering information about it.
Q: What is your favorite NFT marketplace?
A: First of all, let’s define what NFT is. For me, NFT is basically a contract. And If we look at the best, most well-known, and most popular projects, they are mostly art pieces that give you access to the community, like membership cards. So right now at the moment, I have found that the best clubs are on both Ethereum and Solana blockchains.
On Ethereum, the best marketplace is OpenSea — everybody knows it. And on Solana we have MagicEden.
While many people prefer Ethereum and OpenSea, and I admit they have a great community, it is also essential to consider that the buying price is a bit higher. While on Solana, you can find some really good communities at a lower price. So I prefer MagicEden.
Q: Why do people buy NFTs anyway?
A: The NFT business started to develop and become popular when Web2 artists wanted to go to Web3. There are a lot of advantages for creators and buyers of their art — NFTs are unique, they can’t be destroyed, and once you buy them and get them in your wallet, even the artist can’t take them away from you.
So I think many people collect NFTs for the love of art. But, of course, many also want to make money, and the market is actively satisfying that need by creating collections with extra utility. I think that’s what’s attracting more and more people.
Q: How to define whether this particular NFT is a scam?
A: Well, I don’t think you will be able to define it for sure — there is always a possibility of scam, even from projects with amazing whitepaper and social media.
You should do research, obviously, but it is better to secure your assets anyway. If you are ready to invest $1,000, better divide it by ten and invest in ten projects. Then, even if 80% became [a] scam, but one of them go 20x, you will cover your investments and earn some money.
And, of course, always be ready to lose. If you are not ready to take a risk, better not buy NFTs at all.
Q: So, how to choose NFTs to invest [in]?
A: I’d say, have some fun and consider it as a shopping or hobby. I mean, if you will not expect [the] price to go up [the] next day but choose items because you like it and you like the community, it will bring you much more joy and will be [a] much better investment.
Q: What do you specifically like about NFTs and use as a main argument to turn Web2 people to Web3?
A: I mostly talk to business owners so I bring it back to the customers. The idea is that all businesses want to improve their customer experience and with crypto and NFTs, they can do it. For example, if you sell jewelry, you can turn it into NFT — not for replacing [the] actual ring but to get a proof of authenticity tied to your physical product. And you can open your whole business up to crypto payments to get a new center of wealth.
It’s not about investing in projects, but it’s about what you could build and experiences that you can create with crypto.
Q: How to earn money with NFTs?
A: What a lot of people in NFTs don’t understand is that the power is in your hands. I’ve seen it repeatedly: a project can go nowhere, even if the founder is super talented and has a fantastic team. But with a good community, a project can go so far. And you, as an NFT owner, are a part of this community. You can develop it, and the more attention you get, the more money you earn.
I recommend joining Discord and Twitter and connecting with other holders and founders.
Q: When are NFTs going to be in trend again?
A: Actually, people are still very interested. Because all markets, not only NFTs and crypto, are now in crisis and also because when the markets are most fearful, that’s when you’re going to generate wealth. So many people are looking into NFTs and projects to invest to earn money once the market recovers.
Q: How to realize that it’s time to sell your NFT?
A: The time when you should sell is when a majority of the people are buying. When a lot of people are coming in, that’s when you should probably plan an exit strategy.
Q: What’s your opinion on Play-to-Earn games?
A: I think we can more or less conclude that Play-to-Earn does not work because it’s essentially a Ponzi scheme in which people who get in early reap the highest benefits and then leave the ship if they manage to do it. So I don’t think we are going to see more P2E games.
But I see new projects called Pay-to-Play or Play-to-Win, and that’s when you earn money through competing. And I think there will be more projects like this: fun at its core but with NFTs as a tool for engagement.
We thank @jeditrinupab and everyone who asked questions for participating in this AMA session. We invite all to our next interesting meetings!
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