Over the last few months the NFT market has exploded globally, which has resulted in a copious amount of NFT projects being launched daily – with the major talking points being around whether or not the project is doxxed; the quality or existence of a project white paper; and the utility on offer for those that get involved or mint an NFT.
With projects being called out for so-called rug-pulling (scams or not following through on pre-mint promises) many prospective minters or users are growing increasingly aware and hesitant that they could be holding the short end of a brittle stick if they minted.
Let’s discuss a few key points that affect NFT Projects:
- Doxxing (what is it? How do you do it? What are the benefits?)
- White papers
- Utility
Doxxing
Doxxing has been on the lips of NFT & Crypto project owners and users since the beginning but more recently it has become a topic that gets brought up on project Discord servers, Twitter, etc. But what is Doxxing really?
Doxxing reveals previously private information of an individual or organisation linked to an NFT project.
Although it’s nothing new, we all know the faces of companies in the real world, but in when it comes to NFTs, Web3, and the Metaverse, people can easily hide behind a pseudonym/alias and not be “doxxed” in case the pawpaw hits the fan or the project ends up being a rug pull.
More recently, the identities behind the blue-chip NFT project Bored Ape Yacht Club was leaked by BuzzFeed – revealing the founders of this mega project. Although there were mixed reactions to how it was carried out, this could prove to be beneficial to Web3 projects both currently and in the future.
White Papers
In a nutshell, white papers give investors and possible minters a backstory, path, and technical information around a project.
More and more projects are deemed more trustworthy if they have a white paper – showing the users where they’re going (roadmap), what their project will be offering in terms of utility, how they’ll be building their project, and any other information that may be deemed necessary to reinforce legitimacy.
Don’t get us wrong – there have been projects that had white papers in the public domain that ended up being rug pulls, but more often than not the projects that have white papers are transparent around their goals for the project.
There are a few resources online about what white papers should entail, how they’ll benefit the reader and when they’ll come in handy for the project.
Utility
Utility! Utility! Utility! We could go on for hours around utility in Web3 & NFT projects. Major marketplaces like Opensea are flooded with hollow collections that offer nothing more than a JPEG to those who mint the NFT. But what is utility?
Whether it’s redeemable rewards or membership NFTs, a rising number of creators and developers are leveraging blockchain-backed tokens to build and support their communities. Buy and sell scarce digital goods from the likes of POAP, Urbit ID, and Polyient Games.
OpenSea
NFTs that offer utility offer clearly defined intrinsic value over and above the usual scarcity/rarity associated with the NFT by default. As a collective, utility NFTs are still in their infancy and that opens up a world of opportunities for brands, companies, and creatives when it comes to offering utility.
To sum it up, utility gives the owner a purpose and reason to own the NFT with pride. By owning the utility NFT, holders could potentially gain access to exclusive membership areas, an event, access to a game, have voting power in a DAO, or receive perpetual royalties or drops from the project or collaborations.
One of the best utility projects is Axie Infinity – minters of this project will gain entry to their Discord, Marketplace, and Mavis Hub Community. You’ll also gain an ownership deed to a digital item in the game, which without the tokens may be expensive to acquire.
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It goes without saying that Web3 & NFT projects will continue to flood the market, but prospective minters are advised to DYOR before investing in projects.