Why do Art, Utility, and Community always define successful NFT projects?
Three MUSTS to build a successful NFT project are Art, Utility, and Community. Why can’t you have one without sacrificing another?
You’ve heard it time after time during this initial mass adoption of NFTs. Most of them will fail. The number we’ve all heard is anywhere from 90–98%. Of course everyone is asking why; whether that’s so they create a project worthy of that top percent, or are looking for red flags when investing. The three main things it relies on is the quality of the art, the value of utility, and the strength / drive of the community.
Now I am by no means an NFT expert. Honestly I don’t think anyone is at this point, but regardless. I’m a recent grad without the funds to make big plays, but with the passion and knowledge to recognize potential when I see it. I feel that my studies in digital communications / marketing and entrepreneurship have been subconsciously preparing me for a world we have not discovered. I am prepared to dive in head first.
After catching wind of NFTs in late 2020 I sadly failed to act; mostly because of a mixture of the seemingly complex process of minting, buying, and researching; in addition to overall doubt that things would really catch on. Plus I had really started to dive into a lot of different alt-coins and projects that took up a lot of my time. Looking back — the worst mistake was not taking a leap, and pushing myself out of my comfort zone.
In hindsight it is easy to see those mistakes. Which is why helping others from the same ones is so essential. So many avoidable mistakes are made due to lack of knowledge for newcomers, I plan on helping with that in the future.
Things that started to stand out in projects that I had researched and watched, started to become more apparent with the recipe for the already established collections. Alas I watched from the sidelines as a few projects, that I had found and researched before mint, were taking off. Forced to sit because it was too much for the current wallet to handle.
The current NFT market is heavily saturated with projects. As things pick up steam, the amount of people flooding in for a cash grab is exponential. Cheap clip art layers thrown into a program and voila, you have a low cap NFT collection. With no real utility other than a ‘timeless artistic Profile Pic’, there is no future for the project. Just like any other sh*t coin, it may gain some attention but eventually will fail (exception being $doge?). The creators are happy because they put in minimum effort and received maximum reward, which only encourages other crap projects or worse; more rug pulls.
The Art — has to be quality for people to want to invest. First impressions are everything, but not everyone has the same one. In my opinion the art doesn’t need to be created by a well known digital artist, although it helps. It just needs to be good. Quality art is subjective to each person, and taking into account different styles and emerging ones, it’s hard to get it right.
Unique art is something people appreciate and want to invest in. Derivatives seem to have their own place but it’s a case by case basis. Unique ideas aligned with culture references are the top runners for art. The space is ever shifting from the ‘crypto’ style, ape, 3D, avatar, you name it. Just like there are an insane amount of video game genres. The original digital art has evolved dramatically since the early days. There will most likely always be a niche for each NFT art style. People are going to prefer one style over the other, but aren’t protected from outside influences. Preferences will change, and so will the meta. We won't know who gets it right until they do.
Utility — is the necessary structure for any good project to succeed past the hype phase. The value proposition for any investor really starts here. Without fundamentals and a roadmap, projects can only survive for so long. This is where projects are left behind and turn into flip fest. Don’t get me wrong; that's the whole idea here. Buy low, sell high. I respect people willing to put money on the line, but also despise them at the same time. It’s a love hate relationship.
Don’t create something people don’t want. If possible, create something they’ve only dreamed of. The prime example being the Bored Ape Yacht Club’s Mutant Ape Yacht Club. The ideas behind NFT’s at the time of their release were rudimentary and still finding their way. BAYC created something people had only dreamed of; a free airdrop that rewards holders and extends collection reach. MAYC was the perfect utility during the perfect time. I think we can agree that BAYC and MAYC exceeded some expectations, but who’s to say they didn’t deserve it?
Building on their own innovation and success, the BAYC team continued to invest in themselves and provide even more value to their holders, through upcoming $ape token, a play to earn game, merch shop and more. The value only holds true when people buy into what they’re saying. This leads to the necessary support of the community.
Community — is the heart and soul of projects. Users are the literal defining social benchmark for any product or service out there. Someone can construct the best platform in existence, yet get nowhere if there isn't anyone using it. The community are the core supporters for a project, and are arguably just as responsible for the success as the owners.
Community and users go hand in hand for most established and upcoming NFT projects. I think gaming NFTs behave differently; but regardless, still working together. Those in the community that truly believe in the project will continue to promote it regardless of performance. That brings mainly benefits but foreseeable negative experiences for new investors, because of the buy-low-sell-high bottom line.
By believing in and promoting a project, the community is doing things the marketing team would have to pay a lot of money for. Money that could be spent elsewhere, potentially developing the project further and creating more value for investors. Paid marketing isn't even guaranteed to reach your entire exclusive target audience. Organic and personal marketing is the best way to bring in more genuine investors, or at the very least more views to the target audience. When people reach out to their friends or acquaintances on social media trying to promote a project they’re interested in, it feels personal. Now I know that’s not how NFTs promotion really works but it's the idea of preferred marketing to obtain quality investors. Attracting people who continue to share the vision and make contributions of their own to help support the project is invaluable.
Taking a step back to look things over, NFTs are essentially a brand new tool of innovation. Constructing the right base to use that tool to maximum efficiency is how this will all become the global norm. Art, Utility, and Community could be considered the cornerstones, or the pillars that support any sturdy project.
After summarizing my thoughts about the essentials in the NFT community, What did I miss?
