Analysis on Gaming NFTs as an Avenue for Investments.
When venturing into crypto, the first step is to learn. Regardless of how long, familiarizing with the several aspects of crypto such as DeFi, NFTs, etc, should be too priority. This way, practical first hand experiences are gained, and serve as the knowledge guide to lead participants through the murky waters of crypto investment.
NFTs gaming is one of the most promising sectors of the industry, and is a hotbed for investors. However, to be a successful NFTs investor, it is important to be able to identify real opportunities from thorns waiting to scheme/steal from investors. That is why it is important for you to always DYOR when looking to invest into crypto.
For the purpose of education, in this article, I will be talking about the opportunities Gaming NFTs present as an investment option.
NFTs as an investment strategy.
Making investment decisions can be quite daunting. However, personal conviction born of routine experience can be helpful when making these decisions. Personal conviction is key when investing. It is the product of your experience, that is meant to help you make better investment decisions. Only first hand participation gives such experience. At this point, you can already tell your processes of how you DYOR, but for NFTs gaming projects, let us look at some factors that help decide if projects fit into your investment profile.
Investment Profile.
Simply put, your investment profile describes certain conditions and requirements of an investment that tells if it is a right opportunity for you, based on your own situation. When done right, a profile fit research can reveal a lot about the project, exposing the researcher to several intricacies regular social community members may not be interested in. This research also educates investors of what level of involvement will be required of them. Either in the active or passive role, this research will also help investment analysts put a possible timeframe of expected rewards, based on the project’s roadmap.
While doing my own research, I hunt for projects that fall into my investment profile fit. I put most of my analysis on team quality and confidence, commitment level, etc. For me, here are four major steps I take when analyzing if a project falls into my investment category fit:
Step 1: Selecting the right builder.
When analyzing builders to bet on, I mostly look out for;
- Builders pedigree: How trustworthy is the project founder? What does the project’s network ecosystem think of the builder? Anonymous builders are a no go, and builders with a track record of success are my favorites.
- Team and experience: The quality of team/staff comes next. What is their social credibility like? What kind of projects have they been involved with in the past? Do they have a shady past?
- Project type: The game category/niche (FPS, MMORPG, Card games, etc) is another important factor for investors who are more involved in the gameplay and community. Such investors will typically have more interest in playing the game, than simply owning an NFT. These points help investors decide if the project is worth their investment, especially straight from the core team profile.
When I consider these factors, I scrutinize them sternly. Trusting builders can come at an expensive price, but researching thoroughly on the builder’s team helps increase your knowledge of their history and personalities.
Step 2: Finding the right community.
Community is the second most important criteria for me. The quality of the community members often have a direct impact on the value of the project, especially when the founder/team is already satisfactory. Project community audience type is another key factor NFT investors need to consider when making their pre-investment analysis. Besides the caliber of community members, things like network fees could greatly impact the community clan. For instance, a project that is launched on Ethereum mainnet knows it cannot attract Solana players. Therefore, an investor who sticks to the Solana community would have to invest within the Solana community.
This familiarization helps with community bonding and integration, connecting the investor to other network mates, and the particularities of their preferred chain.
Step 3: Stages of growth/Road map.
Project’s growth metrics, projections, and road map are very important when guiding investment timing. While some investors like to go in right from mint day based on their conviction, others spend some time on the sidelines watching the team prove their efficiency before supporting them. Studying the roadmap stage of projects gives better insight into growth expectancy. The project’s projections also help guide greed levels, helping investors have seemingly realistic expectations.
For instance, raising funds within the community to launch a studio will not have the same impact on NFT price, as signing a partnership with a revered gaming brand. Investors looking to make good profits from their NFT investments would have to be strategic with their entry and exit points in the project’s roadmap.
Step 4: Trusting the team.
Regardless of the quality of the product, if a project lacks a supporting community, the project’s growth is greatly limited. Community support is very important for project growth, and can help decide where to put your money. Do you trust the team’s promises and commitment level? What does the rest of the community seem like? You do not want to put money into a project and be the only enthusiastic person. An active community that trusts its builders helps new investors integrate easily, and begin to contribute positively toward the growth of the project, in their own ways.
Remember that these aren’t rules set in stones. In fact, every investor is advised to come up with their own unique metrics and strategies to rate projects for investment. However, the standards discussed above are the most important and necessary research steps to take before investing into an NFT project.
Conclusion.
The NFTs industry is expected to grow by up to 18% in the next five years. And this is at a minimal pace. The intersection of NFTs, a promising industry, with the gaming industry, an industry already worth $500Bn+ globally, with a further ≈14% growth in 5 years, the expectations for NFT gaming is probably the most hyped. From avatars, to player kits, gears, avatars, lands and even pets, the complete development of metaverse gaming will significantly explode the P2P trading of gameverse elements, making it a promising investment alternative for active investors.
So think about it. Being a top investor in an industry worth hundreds of millions of dollars, being exchanged via P2P trading mediums.
The future of NFT gaming is🔥🌟🤯
