Why 98% of NFT Projects will Fail
These are the six main stumbling blocks that will defeat most NFT projects. Does your project fall into one of these categories?
I don’t want to rain on anyone’s parade.
I’m an eternal optimist by nature. So, this isn’t easy for me.
But…
Most NFT projects will fail.
We all want to think “my project is different”. Even me.
So, let’s examine the facts and see if that is really true.
Unestablished
Most NFT projects are small startup businesses.
In their first three years of business, 45% of all small businesses fail.
This might be the result of poor leadership, financial mismanagement, lack of product-market fit, or just bad luck.
Most people who start small businesses know this statistic. Yet, hope springs eternal in the human heart.
So, people continue to start new businesses without really knowing what they are doing. And they believe their results will be different.
Unoriginal
I’m sorry to have to say this, but most of the NFT projects out there are not very original.
Most projects use the same “generative” method to produce their NFTs. So, most new projects look much the same. Instead of apes or punks, these new projects try to be original by choosing to generate cats, dogs, birds, bears, pandas, frogs, anime, warriors, aliens, robots, dragons, goblins, zombies, unicorns, and so on. Some think that they are being original if they make one of these types “mutant”.
But, come on. How different can they be if they are all generated in the same way?
Have some been successful? Yes.
But, the field is now thick with projects that are trying to cash in on the same tired formula.
I think the day is coming soon when people will start to see through this thin veil.
Unattractive
I understand that I risk sounding like a snob by saying this, but here goes…
I find almost all the current NFT projects I see to be unattractive.
Even the successful ones.
The problem is that most of these projects have succeeded on hype and last year’s huge price appreciations. People buy and sell them because they are “hot”, not because they are attractive.
Ask yourself whether you would buy a bored zombie unicorn or a mutant robot solely based on its beauty and artistic quality. Would you buy it if you didn’t think you were going to double your money in the next few weeks? Do you really think that any of these will be featured in art history books twenty years from now?
I doubt it.
Do some succeed anyway? Yes.
But, many, many projects will fail because they are not attractive.
Uninspired
Here, I am talking not about the art itself, but about the leadership of the project.
Many NFT project founders are not in the business because they are inspired to create value. They are in the business solely for the money. They hope to get rich quick.
Now, don’t get me wrong. I would love to get rich in the NFT business. But I have been in several businesses for a lot of years. I have learned that businesses become successful when they provide quality products, that people actually want, at a fair price.
If you are only in it for the money, people can sense that. And, if you are not inspired to create a quality product, people can sense that too.
So, a lot of projects will fail for this reason.
Unethical
Some NFT projects fail because they are intentional scams.
Some are criminal while others are only unethical.
This category includes plagiarists (who copy a successful project with only minor changes). It includes “pump-and-dumps” and “rug-pulls”. It includes projects who publish elaborate roadmaps and whitepapers, knowing that they never can or will produce what they claim.
Some of these projects can be “successful” from the viewpoint of the founders. They may sell out their collection and make a pile of money for the founders. But they are all failures from the viewpoint of every investor who is left holding the bag.
You could say that all these scam projects fail because that was the intention of management from the beginning.
Unknown
Many projects will fail because they never figure out how to promote effectively.
Unfortunately, this can include good projects that don’t fall into any of the other categories in this article.
There is so much hype and noise in the NFT market that good projects struggle to get noticed.
Unfortunately, many projects think that the only way they can get noticed is to hire “shillers” and “spammers”. This only compounds the noise, distraction, and distrust in the community.
Sometimes, if a project does succeed in getting noticed, it will then fail because it falls into one of the other categories (see above).
The Bottom Line
There are a lot of ways to fail in the NFT business. But there are also some ways to win.
Be original.
Be creative.
Be passionate.
Be honest.
Be an educator (not a Shiller).
About AvatArt NFT Studios
AvatArt Studios is the creator of collections of original and unique ART NFTs. We create our NFTs with the help of artificial intelligence (AI). This is completely different from the “generative” process used by all the apes, punks, cats, dogs, birds, bears, pandas, frogs, warriors, aliens, robots, dragons, goblins, unicorns, and so on. It produces NFTs that are unusual, attractive, and distinctive.
AvatArt Studios has introduced three “cross-over” NFT collections. This means they fit into both the “Art NFT” and the “Collectable NFT” categories.
And, we promise not to over-hype or make exaggerated claims to market our artwork.
Please visit our website to see samples of our “artistic collectibles”.
We would be thrilled and honored if you would follow us on Medium and further engage with us here:
- · Discord: https://discord.gg/mk7B42KCa8
- · Twitter: https://twitter.com/TitansClubNFT
- · Instagram: https://www.instagram.com/avatartnft
- · Join our mailing list: http://eepurl.com/h0W5tr
About the Author
Richard Crites is the founder and artist at AvatArt NFT Studios. He is also CEO and Founder of OmniBazaar, Inc. He has 40+ years of entrepreneurial success and exits in four separate industries. Rick holds a master’s degree in Aerospace Engineering from Stanford University. He has been active in cryptocurrency and blockchain since 2013.
Background:
- Serial entrepreneur, business developer, executive.
- Software designer and architect, strategist, creator.
- Inventor, author, digital artist, and speaker.
- Business strategist, team-builder, executive manager.