This NFT Millionaire told us what to do when buying NFTs

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19 Jan 2024

In this brief article we will review some quick tips about the NFT marketplace

1. Invest in NFTs which have real utility

Since many months, the NFT market knows a significant increase, if not a massive boom. Yet many NFT collections are as of yet just a cash grab. Except for few projects and collectors who are lucky enough to receive amongst the rarest pieces of the collections, other collectors will quickly see their investment lose in value.
Taking for example, the Moon Boyz collection, which displayed some of the most insane hype ever seen at an NFT collection launch, it can now be observed, after a few months, that most minters have seen their investment divided in more than half, in fact from 0.2 ETH to 0.07 ETH on average.
As such, as an investor it is preferable to invest in NFT collections which offers utility on top of good design. Typically, in the form of private access to an investors group, a token presale or a DAO.
Looking at another project like the Rebellion Protocol NFT collection. these NFTs are not only awesome looking, but most importantly they allow its holders to participate in the governance decision making of the project, through the voting rights granted by their NFTs, they are so called DAO NFTs. On top of that, these DAO NFTs cannot be bought, they must be earned. Basically, as an owner of REBL (native token of the Rebellion Protocol project), you are able to stake these tokens and receive NFTs as a reward “for free”. Now since these NFTs hold governance voting power, they have intrinsic value on top of its good-looking design.
The different tiers of NFTs, and therefore rarity, will grant different voting power rights. This in turn, makes it valuable for different types of investors and accommodates the entire community of the project. Now some projects have DAOs that are quite limited in possibilities of decision making and therefore being granted voting rights only holds little value.
Well, to take again the example of the Rebellion Protocol governance, DAO NFT holders are able to decide on where to invest the funds held by the project (the project itself is a community driven investment fund), so it only makes sense that the community can influence these decisions, and therefore gives quite some value to DAO NFT holders. Yet with great power comes great responsibilities😉 But if for example DOA NFT holders decides to build an HQ reserved for members only, support any other crypto project, of buy an island, they could decide so.
Decision-making and investment power is no longer just the business of the founders but of the community as a whole.

2. Snipe NFT collections’ reveals

This is a tip for the fastest among you reading this.
During the revelation of an NFT collection, that’s mean the moment when the rarity and therefore value of your NFT piece is revealed. If you are fast enough, you could make a lot of money by buying the rare NFT listed at the floor price.
In order to do so you need the following:

To Know the rarity aspects of the NFT collections you are trying to snipe (like a golden character, shiny background…)
Own a relatively fast computer and internet connection, so that you are among the first to see the collection appear
Know where to refresh the metadata of the NFT collection to reveal it faster. It’s this button on opensea website (picture below). So refresh, refresh and refresh until you snipe!

3. Beware of whale hooks

Some whales try to hook some smaller investor by buying and selling NFT with two of their own wallets to make them believe that the NFT has a higher sale price than it actually has. They are essentially buying and selling to themselves to bump up the prices and create fake purchase volume. Unaware investors think they will do a good deal by buying an NFT at the last sold price, when in fact the demand for that NFT is not that high.
These are three quick tips & hacks concerning the purchase of NFT collections. Give us at least a dozen claps if you enjoyed this article. Speak to you next week.

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