When it comes to NFT, most of the famous projects like CryptoPunks sit on the Ethereum network. The problem with Ethereum is that the gas fee for minting an NFT can be USD 200-300. However there may only be 1/10 chance (or less) that you will mint successfully if the project is a popular one. It is definitely costly even for whales. As such NFT projects on Solana network (in which gas fee is negligible) is a much more economically sensible alternative for average NFT investors.
Solana is the second largest chain (only after Ethereum) when it comes to NFT trading. While thousands of projects are available, you must DYOR (Do Your Own Research) in order to pick the right project with good potential. Below are some hints to pick a profitable one:
- Pick a project listed on Magic Eden - Magic Eden requires the project team to be doxxed, which makes rugg pulls less likely (but still possible).
- Check the number of followers in the project's Twitter account. The more followers, the better.
- Also check whether any verified users are among the followers of the project's Twitter account.
- Check the project's Discord channel for the number of members. Also check whether the community has a good vibe, and observe how the project team is reacting to questions or requests from the community.
- Check the project's Roadmap (usually available in the project's Discord channel). A good project should have a concrete roadmap with specific milestones, and timeline to achieve these milestones.
- Understand whether the project has any utility (other than the artwork itself). Good utility will significant increase value of its NFT.
- If the project is already minted and being traded, check if it is invested by any whales or influencers.
- If you are minting for a new project, ALWAYS use a Burner wallet to mint. Burner wallet is the "dummy wallet" that only have the minting cost (and some buffer for gas fee). By using Burner wallet, you can limit your loss even if the project turns out to be a scam.
P.S. I am recently looking at a Solana NFT project called Lucky Kittens. If you are a cat lover like me, Lucky Kittens NFT!