How Do You Distinguish Good From Bad NFTs?
The Berlin-based start-up NFTsolution.Network collects background information on NFTs to provide buyers and sellers with an objective assessment of NFTs. Founder Oliver Meyer helps to ensure that NFTs can be bought on a solid basis.
Already as a child, Oliver Meyer had a very good understanding of computers. His father bought him a computer when he was 8 years old. He himself bought an accompanying programming book with over 300 pages. Unfortunately, he had to give the computer to his older sister because she had to finish her studies. That was the end of programming for him. Otherwise, he probably would have become a programmer. But this is the basis for his interest in the IT sector.
Oliver Meyer is a practical person, who sets concrete goals and puts them into action. Instead of striking the path of academic studies, he decides to found a company. He supported customers with PARUG GmbH to reverse faulty credit contracts. Since a change in the law had taken place because of bank lobbyism, the main principle no longer worked. But Oliver Meyer did not give up, instead, he founded his second company. This second company, fruittune GmbH, runs the JUWELLE brand, an online platform for commissioned goldsmith work. In the course of his ten-year career as an entrepreneur, from his company Veganwin, a user-generated content platform on the topic of vegan consumption, to the Newman Agency, which served to generate greater success in social media marketing, to Coinfreak, an automated news blog for crypto investments, he specialized in the field of software architecture and thus developed his commitment and discipline.
A Technical-Physical Evolution
At the end of 2020, a technical-physical evolution emerged at JUWELLE, through a new conception. During a conversation with an investor, the idea is to use the transparent blockchain to record jewelry and its production from the material to the processing and its history on a blockchain. This story and the features of the jewelry are NFT. That is the start of the entry into the NFT world.
An interesting example from Oliver Meyer on NFTs is the human being.
“I create an NFT with all the characteristics about my person such as personal ID data, documents for identification as well as biometric data. The NFT is then divided into 1000 parts, for example, so that an NFT collection is created. Now other people can buy these 1000 NFTs from me. The special thing is that other people can thus invest directly in me and bet on the fact that my plans as announced will come true in the future. When this happens, the NFT should be worth more because it is linked to the value I have created. The buyers of my NFTs should then be able to sell the NFT with a higher selling price, however, if the new NFT buyer believes that I will continue to create more value. So, it means an NFT would also be suitable for people.”
This revolutionary approach is a development that has never been seen before. Now let’s take a step back and confine ourselves to non-physical NFTs. That is because much associate online art with NFT. Thus, the startup’s focus is evolving from physical people or objects, such as jewelry, to online pictures.
Platforms for online images already exist. The most famous platform is OpenSea. There, artists have the opportunity to sell their own works (NFTs) online. But there is the following problem: OpenSea is the largest marketplace for artists with 1 million active users and 80 million NFTs. Until the beginning of 2021, the marketing of NFTs worked largely through drop-your-NFTs tweets on Twitter. This makes it difficult for an artist to stand out from the crowd.
How Do You Get a Better Range of Followers and Customers?
In order for artists to get a wider reach and sell more NFTs, NFTsolution.Network comes into play by measuring and expanding the visibility and value of the artist. At the same time, the advantage of NFTsolution.Network is that there are no middlemen like in a gallery or an auction house. When someone uploads an NFT, he*she can determine the price. By reselling it, the artist generates his or her own profit. Here a gap is closed. Because of NFTsolution.Network gives the artists the tools to be seen.
But even at this point, there are some hurdles to overcome. The idea is that the artists represent or rewrite their own works. A story should be written about their works. So, everybody has the possibility to get the background and the history of NFTs. This content brings a clear added value to the community as well as to the artist.
Therefore, there is further development for the artists and their range, visibility, and demand. The accounts of the artists on Twitter and Instagram are used as an indicator.
How Do You Distinguish Good From Bad NFTs?
Herewith we come back to the initial question. How to distinguish good from bad NFTs? Namely, there is a scoring consisting of two pillars. The first part is a rating or classification, which measures the reach on Twitter and Instagram. For example: How many followers have an artist have? This also includes the extent of the artist’s posts, and how many posts he/she responds to, and interacts with others. What digital footprint he/she creates? This brings us closer to the initial question, but this question has not yet been fully answered.
Unfortunately, there are NFT buyers and sellers in the NFT market, who make a fuss about bad or less valuable NFTs, which have no value. These buyers and sellers are called NFT flippers. They buy a lot of NFTs and make it appear that the NFT is worth a lot. In this way, they get buyers, who also buy the NFT after them. These buyers, in return, will not find anyone else to buy this NFT. This is a sign that the NFT market continues to be manipulable.
The most famous example of a bad valuation of an NFT is the first tweet of Twitter founder Jack Dorsey. He sold his NFT for $2.9 million. The owner of this NFT wanted to resell it for $50 million. The highest bid is now $32,000.
You Can Decide: What Is a Good NFT?
To prevent this from happening, Oliver Meyer’s start-up NFTsolution.Network and his team have developed a voting system. That is the second important pillar to evaluate objectively NFTs. On this platform, artists, buyers, and investors can cast their vote for an NFT that they think has the highest potential. This voting tool leads to the creation of a rating. Through this mutual interaction, the NFTs get a rating. This evaluation takes place as follows: How the NFTs performed? Whether they have already won something? How many people have already voted for them? Who is their artist? And who had already acted on these NFTs?
On the basis of these criteria, you can give a vote. This comes into polling also in relation to other NFTs. Thus, an authentic average value of the NFT can be generated. Thereby you have the possibility to get a good evaluation of NFTs with less of your own research. This gives NFT artists as well as buyers and investors a good tool to distinguish good NFTs from bad NFTs.
When Oliver Meyer looks back on his first year and a half of his startup, he learns that connecting social media channels like Twitter and Instagram gives artists better reach through their own community. At the same time, with a start-up, it is the case that not everything goes smoothly right away, but some things are very complex and thus take time. This includes the low application of their own story and works. Someone learns from mistakes, thereby the measurability, trust, the confidence develop through the connection with the social media channels Twitter, and Instagram. For NFT artists as well as investors these evaluation tools help to gain mutual trust through objectivity.
What Can You Take Home From These Experience?
feelings. Say: Become clear, by a checklist, not to fall into the FOMO (Fear of missing out). The NFT market has just started now and will need another 20 years to become as established as the Internet is now, due to the effort in technical development. This means that you still have a lot to invest. However, you should always invest on a proper data basis and knowledge about your investments. Talk to people in the community and use more tools rather than too few to make a decision.”
Now there is the possibility to distinguish good from bad NFTs.
More information about NFTsolution.Network, its tasks, and your participation as an artist or investor for NFTs can be found at the following link as well as the contact to Oliver Meyer and his team.
Katharina Brosch is the manager of public relations from the start-up NFTsolution.Network. She contributes to the public especially to NFT investors and NFT artists to assess NFTs and to get profit out of it. Before Katharina Brosch came to the crypto space, she was in the insurance and finance industry for over one year as self-employed in Karlsruhe and Stuttgart. Her long university experience in research analysis helps Katharina now to write articles and perform in public. Katharina loves to travel around the world and in her free time she draws Pop Art NFTs. For any questions about assessments and ratings about NFTs Katharina and the team of NFTsolution.Network is available under the following email. [kb at nftsolution.network]