Navigating the Challenges of the NFT Market: Insights for Builders and Collectors

If you are reading this, I'm certain of two things:

1. You're interested in web3.

2. You've probably tried building something in it, whether it's a project, a community, or a personal Twitter profile that you want to make recognizable.

I'm also confident that I won't be mistaken if I assume that you've encountered various challenges while trying to succeed in this endeavor. The circumstances surrounding the NFT and the entire crypto market are far from favorable.

This is particularly evident in the NFT domain. The current meme coin season has completely shifted the focus towards a new opportunity for quick earnings and the realization of what the web3 community calls "generational wealth."

Founders of NFT projects find themselves in an unfavorable situation, perhaps the most difficult one thus far. Honestly, it's a kind of paradox.

What is the NFT market paradox?

At its center, there are collectors, builders and marketplaces.

Collectors, who are potential buyers of your NFT, don't expect value for their money; they expect multiple times the value for their money. Looking at successful projects like Azuki and BAYC, which they cannot possess (except for rare exceptions), they are searching for another opportunity to become blue-chip holders. In such a situation, as hard as it may be to admit, they are not genuinely interested in the different experience that an NFT can provide them. To make matters even more challenging, the community is very reserved in its approach to any communication initiated by a project.

Builders are under pressure to present every project as an opportunity for dizzying success. Comparing themselves to the best ones, they fall into the traps of big promises and the inability to deliver expected quality.

And of course, there are major marketplaces that can give a boost to any project by featuring it on their launchpad. However, in order to protect their reputation, they only accept projects that have already built their community and often require developed prototypes to prove that the team is serious in their intentions. Let's be clear, this is completely justified. However, what is not justified is the absence of substantial support until it becomes clear that the collection has a high chance of market success and bringing them profit.

What to do?

Definitely, the biggest burden falls on the builders, and they are to blame for it themselves. We have witnessed so many failed projects and rug pulls that, as buyers, we have become much more cautious. But it is still not impossible to succeed, and these two pieces of advice will help you in that regard.

• Builders need to build their personal reputation in the web3 community. Twitter is the primary channel that will help you with this. Don't hide behind your project's account. Before deciding to launch it, show the community who you really are. Only by creating strong personal connections and building a personal reputation, you will be able to convince others that you are a trustworthy person.

• The MVP (Minimum Viable Product) must be delivered immediately after minting. Don't ask for money upfront to fulfill promises. This is not crowdfunding. Promise only what you can deliver to your buyers right after the NFT is in their wallets. If you don't have a finished product, don't talk about it – let it happen in later stages of development. I know what most people will ask – how can I create something if I don't have money? I have an answer to that – When you buy a piece of clothing at a store, are you investing in the company? The answer is no. You are providing them with revenue, and investors are those who gave money believing they will succeed in their plans. The NFT community is a buyer, not an investor. If you want someone to give you money to realize your plans, then you need investors, not buyers.

That's all for today. This is a topic we could talk about much longer, but since Saturday has just begun, I want to leave you enough space to enjoy the weekend. Thank you for reading!