Despite market constraints and changes, entrepreneurs are lured to non-traditional enterprises. Regardless, NFT has grown significantly.
Over USD 37 billion was exchanged on NFT marketplaces in the first half of 2022, compared to USD 40 billion for the entire year of 2021, and the number of active NFT buyers and sellers is increasing as per Chainalysis.
The NFT cryptocurrency mania has captured practically everyone, from large firms like Louis Vuitton, Samsung, and Lamborghini to celebrities like Paris Hilton, Snoop Dogg, and Shawn Mendes. While noteworthy players have had varying degrees of success, many have been unable to get widespread attention or create a long-term NFT strategy.
They are either experiencing technical difficulties, such as website outages, or are being targeted by attackers and bots. NFT participation can now help any small firm. If you haven’t already, now is the time to think about making your own NFTs. Even if the market is expected to reach $40 billion in trade volume by 2022, investing early is still a viable choice.
What Elements Determine an NFT Project’s Success?
Most people naturally equate the success of a project with its starting price. They may believe that increasing the floor price will help the project succeed. The floor price is an important indicator of success, but it is not the only one.
In early 2022, Pixelmon, for example, was one of the most anticipated NFT companies. The large majority of users believe that transactions on the secondary market are worth more than the floor price of two Ethereum. However, by auctioning off the entire collection in a Dutch auction that began at 3 ETH per piece, the corporation raised more than $70 million.
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Since the first mint, the floor price has decreased by more than 90%, and the vast majority of investors have lost money. Pixelmon, despite its high starting price, would not be deemed a successful project.
#1 True Measures of Success
The first crucial component of a successful NFT marketplace development is the ability to generate demand regardless of market conditions. It is quite easy to sell out a collection while the market is bullish; but, when the market turns bearish, which can happen at any time in the NFT arena, it is incredibly tough to sustain the same demand.
Volume is a crucial indicator of whether the market is in decline.
Companies that weather the storm, like Apple, Amazon, and Berkshire Hathaway, will grow into non-financial-transactions blue-chips (NFTs). These efforts will become so large that they will be unstoppable in the future, and their worth will rise. Initiatives such as BAYC, Realm of Women, and Veefriend have already reached this level of success in the NFT market.
Despite the financial downturn, demand has remained consistent, demonstrating not only investors’ confidence in the project but also its long-term utility.
#2 Attain User Traction
According to Visa, NFTs may appeal to collectors, fans, and teams. They are also a terrific way to sell one-of-a-kind goods, engage with followers, and earn money.
- NFTs can increase fan participation by providing them with exclusive things, discounts, or voting rights.
- Consider the NBA’s best shots when looking for new revenue streams! Brands can sell special or limited edition digital things because NFTs enable digital scarcity.
- NFT smart contracts also enable NFT creators to receive future royalties if the NFT is sold.
- Customers can examine NFTs and determine which wallet address they belong to, which is one of their distinguishing features. This could lead to better client segmentation and more targeted contact.
- Metrics such as the number, duration, and kind of NFTs in the wallet are now available.
#3 To Build a Robust NFT community, Combine Commercial Strategy
Decide who you want to reach and what value you can provide first. Although the goal statements of your community and your company are not the same, the former should aid to enhance and improve your firm’s model. Determine how to connect the day-to-day activities of the organization to the company vision and community mission: the mission statement should be based on the value you bring to members of the community.
#4 Create Frameworks That Enable Desirable Community Interactions at All Levels of Membership
The following phase is to determine the procedures that will allow for the desired community interactions. Except for poor marketing efforts, most organizations’ purpose statements are generally forgotten.
You can choose your community model and the type of participation that occurs at each level of the community, from recruitment to advocacy, by totally designing your NFT community. To inspire and guide community development, a good content strategy is also required.
#5 Choose a Long-Term Sustainable Storage Method for Digital Assets
Where will the NFT file, such as the basketball card or digital artwork, be saved? There are several methods for maintaining it. Nevertheless, choose the most robust and long-lasting method. It may be lost if you keep it on a centralized server. The URL may change if you save the file to Google Drive. A distributed storage system might be your best bet.
- Blockchain Storage
Even though it would be simple to instantly upload your NFT file to the blockchain, this is not how blockchains are supposed to work. A 1MB file on the Ethereum blockchain would cost around $20,000 to keep. So let us ignore this option.
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- Centralized Storage
In this case, the NFT would direct users to the URL of a digital file that is centrally kept, such as one on a server or in the cloud. The issue is that if the file’s original host no longer hosts it, the NFT will no longer function. As a result, this is not the best choice.
- Decentralized Storage
This is where the incredible IPFS ecosystem comes in. Instead of relying on a single organization, the interplanetary file system, or IPFS, uses storage files scattered over a network. This adheres to the blockchain’s immutability principle.
#6 Strong Focus on NFT Utilities Ensures Long-term Value Creation
If you want to establish a community-based NFT marketplace development, keep in mind that art is important but transient, thus it shouldn’t make up the majority of your value proposition. Since they offer a fun element of chance and surprise to the minting process, the 10k or 8,888 PFP projects are becoming increasingly popular. New trends will arise as the industry advances and customers and businesses become savvier.
What does this signify for new brands wishing to launch NFT marketplaces? If a company isn’t currently a part of the digital art community, it should think about ways to increase the physical and digital worth of its NFT collection. NFT utilities promote better floor pricing, community participation, and liquidity. You want your neighbors to be torn between selling and staying in your neighborhood.
While a detailed list of future services isn’t required at this time, interesting roadmap drops, surprises, and regular updates can keep people interested. Your core utilities should, in general, support your entire company strategy; nevertheless, the nature of web3 allows for unexpected alliances and gamification, which can delight your clients.
#7 Find Alternative Ways to Engage
Make use of your creativity. One of their important characteristics is the ability to compose NFTs. NFTs can benefit from the following features,
- Physical Objects
As part of the NFT, the consumer may receive a tangible item (Beeple was doing this)
NFTs can be combined with concert or event tickets.
- Loyalty and Gamification
NFTs can be used as loyalty rewards to promote specific behaviors through gamification.
- Fan Governance and Community Engagement
Voting rights for NFT owners may be granted, allowing for public participation and fan governance.
- Enhanced Metaverse Utility
NFTs have the potential to enable or improve metaverse functions such as gaming and virtual worlds.
The NFT industry has significant development potential. Those who enter the market before 2022 get over, however, will benefit from a first-mover advantage! NFTs can assist you in positioning your crypto business for long-term growth and increasing its value.
NFT Launch Strategy: How to Ensure Success?
Set Objectives For Your NFT Project
The first step in starting an NFT marketplace development project is to set goals.
What do you aim to achieve by starting this project?
What do you aim to achieve?
The vast majority of businesses and individuals entering the NFT domain state that their primary objectives are to prepare for the metaverse, develop a community, and provide value to their target audience. Whatever your goals are, make sure they are communicated clearly. This will help you and your team decide on the path of your project.
Choose the Art Style You Will Produce For Your NFT Project
After you have established your objectives, consider the type of art you want to make for your NFT project. Is it going to be a movie, an audio file, or 3D artwork? When deciding on the sort of artwork to provide, keep your target clients in mind.
The majority of Sylvester Stallone’s action hero appearances, for example, impacted the artwork for his SLYGuys NFT project. This concept piques the interest of the vast majority of his admirers.
Build an Engaged Community for Your Project
You must prioritize your collectors whether you are an artist trying to sell NFTs for a living or a Web2 firm interested in the NFT industry. As a result, establishing a strong NFT community is critical. Consider the following ideas to assist you in creating a community that actively supports your efforts:
- Make a social networking profile.
- Engage in social media conversations with influential people.
- Create a trustworthy website.
- Produce promotional written material, photos, and videos.
Remember that today is an excellent day to start a community. The more you focus on brand development, the more probable it is that you will build a loyal following over time.
Activate a Smart Contract
Smart contracts are code-specified digital contracts between users. If certain criteria are met, these contracts can be designed to execute themselves. A robust and secure smart contract is required for any NFT marketplace development project to succeed.
Make a Long-term Plan
You should also think about building an NFT strategy. Your roadmap will help you inform your audience about your future goals, such as when you’ll do reveals, when your mint date is, and other important details. This will also show potential traders that you are serious about running a business.
A roadmap effectively communicates to your audience what they may expect as community members. It might be as basic as a personalized paper detailing your objectives, such as holding contests at strategic points or providing exclusive access to a premium experience.
Additional Considerations For an NFT Project
NFT is not a flawless utopia. The following additional difficulties may be a deal breaker if you are unaware of them and do not account for them,
- Risk Management
Security threats, insecurity, and fraud when security practices are not in place.
- Licensing and T&Cs
Examine your NFT purchase or sell for regulatory and legal clarity! You may be required to adhere to the terms and conditions of the online marketplace you use.
- Legal and Regulatory
Different countries’ copyright rules will be different. Make certain you comprehend them.
Future of NFTs
Even though the NFT industry is expanding, there is still more work to be done. The market is still in its early phases, and most traders’ judgments are based solely on news and excitement. Since there is no Uber for non-profits, now is an excellent time to get started. Perhaps the enormous NFT project that everyone is looking forward to is yours.
Starting an NFT marketplace development project is a lot of fun. However, don’t let your enthusiasm overpower the critical milestones in the progress of an NFT project. Maintain an open and honest development process, and notify your community if your debut date needs to be rescheduled.
Pyramidion Solutions, one of the most renowned and successful NFT marketplace development companies in the world, has considerable experience in developing scalable trading platforms. We have vast experience with a wide range of NFT solutions, such as ecosystems and token manufacturing. Our Blockchain experts build NFT Marketplace to support the trade of physical and digital assets such as artwork, game cards, and software licenses.