How to Value an NFT When Purchasing?

An NFT, or nonfungible token, is displayed on a billboard in Time Square, New York, Thursday, Nov. 4, 2021. Images of NFTs were displayed on billboards throughout Times Square during NFT.NYC, a conference for all things related to NFTs. (AP Photo/Seth Wenig)

We’ve been following @cryptobec_ on TikTok. She’s an absolute queen when it comes to everything NFT, metaverse and crypto related. She recently posted a video in response to a follower question which asked about blockchains and metrics. The video is titled “How Can I Value an NFT?” 

It’s worth valuing NFTs when considering whether to purchase them and what to purchase them for. Here is what to consider.

  1. Utility
    Examples of utility are art as an artifact, internal utility, metaverse utility, real world utility and community utility. For example, you may want to purchase art as an artifact. Crypto bec said she purchased a piece of art simply because she liked and respected the female community involved in it.  
  2. Rarity
    In a collection of 10,000 images how rare is your NFT? Trait Sniper is a great app which lists similar NFTs in the space and lets you know how rare they are. 
  3. Floor Price
    The floor price tells you the lowest price that a crypto coven is going for. This gives a gauge for how popular they are right now and might indicate how much room for growth and value there is. 
  4. Road Map
    This refers to what the crypto coven group has planned for the collection. If you look at Board Ape club they had a future world and other collections being released, this gives longevity to the project. Some communities will even have their road maps outlined on their sites. 
  5. Community Size
    Figuring this out is easy, you go to the NFT creators’ site and get the link to their Twitter and Discord and check out their following size. You want to see some traction at least.
  6. Volume
    Go onto Open Sea or the other platform you’re purchasing from and look at what’s being traded. There is usually a traded number (eg 1.4k) and that’s the current volume of people trading.
  7. Provenance
    This is the history of the NFTs ownership, for example if a celebrity or influencer has previously owned the NFT it might be worth investing in. 

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