When people put their money into Crypto, one of the common questions that get asked is, "Is this project a scam?". Of course, nobody wants to lose money in these markets, but the downside of such growling “ FOMO ” makes it hard to evaluate projects with an unbiased and rational mindset. 

In the wild west of Crypto, there are basically no standards, regulations, and safeguards to prevent scammers from taking your money and running away with no consequences. So how do you make sure you won't be a victim of fraud happening within NFT projects? 

In this article, you will discover ways to evaluate non-fungible token projects so that you can decide whether or not it's worth investing in them.

What are NFT projects?

NFTs are Non-Fungible Tokens. This means they can't be divided into smaller pieces, like Bitcoin and Ethereum. They are unique and not interchangeable.

They may represent ownership of a specific physical asset, such as a house or a car. Or they can represent a share in company equity or even just an idea.

The possibilities are endless!

Why are NFT projects so popular?

NFTs have many advantages over traditional securities:

  • They're easy to create and trade on any exchange (or decentralized exchange). Traditional securities require lengthy paperwork and compliance checks before being listed on any stock exchange.
  • The issuer doesn't need to go through the hassle of issuing and managing certificates for each individual investor - there's only one token representing each asset.
  • There's no risk of theft or loss because your tokens can be stored securely in your wallet (unless you lose your private key).

Why evaluate NFT projects?

Without evaluating these projects, you could end up with bad investments that cost you money and take time away from your business.

In addition, evaluating them helps you understand how they operate to make informed decisions about investing in them or not.

What are NFTs used for?

NFTs can be used for many purposes, including:

  • Collectibles - NFTs can represent real-world assets like artworks or physical items like cars. These are often called “non-fungible tokens” because each token is unique.
  • Voting rights - NFTs can represent voting rights in a company or organization. For example, an artist may issue an NFT that represents the right to vote on whether an artwork should be sold at auction or offered as part of an exhibition.
  • Access to exclusive content - An artist may issue an NFT that represents access to exclusive content such as music tracks or photosets. The owner of an NFT can only access this content if they hold that particular NFT in their wallet.

How do NFT projects work?

NFT projects are based on the Ethereum blockchain. There are many different types of tokens and assets, but they all share some common features. For example, NFTs can represent anything that has value. Examples include art, real estate, music, and even loyalty points.

NFTs are created by developers who design a smart contract that records the token's properties, such as its owner, supply, and unique ID number. This smart contract can be used to transfer ownership of an NFT between two parties by sending them tokens representing the asset in question.

NFTs are stored in wallets that allow users to manage their digital assets securely and easily with private keys or passwords. These wallets can be downloaded from various websites such as Coinbase Wallet or MyEtherWallet.

10 Ways to Evaluate NFT Projects in 2022

1. The NFT Developer activity.

One of the biggest challenges in evaluating NFT projects is that many are not yet in production. But there are still ways to assess them, including looking at their developer activity, team experience, and the number of contributors on their GitHub repos.

An excellent example of this was CryptoKitties. Before going into  production, the NFT had a very active GitHub repo with more than 200 developers working on it. This shows that there is significant developer interest in the project.

2. NFT Detailed roadmap.

Another thing to look for when evaluating an NFT project is its roadmap. This is important because it gives an idea of ​​where the team sees their product going over time. If their roadmap is well-thought-out and contains realistic goals, then this means that they're serious about their project and understand what needs to be done for it to succeed long term. 

However, if their roadmap seems vague or inconsistent with reality, this may indicate that the project isn't being managed well or that there's some sort of internal conflict within the team that could affect how smoothly things run over time (either way).

Not only does having a good roadmap help show how serious a team is about their project, but it gives investors confidence in what they're investing in.

3. Solid token economics.

This isn't as straightforward as it sounds, but the basic idea is that the token should have a clear relationship with an underlying product or service. For example, if you're buying an in-game skin for Fortnite, you want to know that its price is directly related to how rare it is (and, therefore, how much demand there is).

You'll also want to know that there's some incentive for people who buy skins early on - perhaps they'll get more cosmetics or access to special features. If these incentives are strong enough and players don't feel like they're being ripped off, then this can be a very sustainable business model for years to come.

4. Presence of professional advisors. 

If you see an advisor in the project's whitepaper, that means it has already been vetted by someone knowledgeable about what they are talking about.

Good advisors are often very busy people who only take on projects they believe will succeed or already know something about them (for example, through previous experience). This means that if you see an advisor listed on the website - even if it's just one - there is probably something good going on behind the scenes!

5. A good NFT whitepaper and website.

Another way to evaluate an NFT project is to look at their website and the white paper.

A good whitepaper should include an overview of the project, the problem they are trying to solve, how they want to solve it, and how they plan on making money.

The white paper will also give you an idea of ​​what their team looks like, their experience, and how long they have been working together. If you want to know more about any specific team member or industry expert, check out their LinkedIn profiles.

The website should also include information about each of these topics and links to other resources such as social media accounts or newsletters that keep investors up-to-date with developments within the project. A good website will also include a roadmap that shows what milestones have already been achieved and what milestones are still left toward an MVP or beta version of their product / service.

6. The NFT Press and Media Coverage.

The amount of press coverage a project receives is one of the best indicators of its success. Unfortunately, this metric can be tricky to measure because it's impossible to know how much press would have been generated for a project if it wasn't NFT-based. However, there are ways to determine the press's impact on a project by analyzing its social media activity before and after its published coverage.

The most straightforward way to evaluate this metric is by looking at Google Trends data. For example, if a project has received lots of press coverage, but few people talk about it on social media, there might be something wrong with the product or the team behind it. Conversely, if there isn't enough buzz surrounding your project, you may want to consider changing your strategy or pivoting your product until you find something people want to talk about.

7. The NFT Real-world use cases

One reason why the NFT industry is exploding is because of the real-world use cases of blockchain. One popular example is creating digital collectibles. Others includes:

Creating digital versions of real-life assets, such as art or real estate. For example, art can be digitized, and then you can buy and sell it through blockchain platforms. This will make it easier for collectors who want to own certain pieces in their collections without going through the stress of actually buying them. It will also make it easier for artists who want their works to reach a wider audience.

Creating new forms of ownership and monetization for intellectual property rights. For example, you can create your own special version of an existing song (or any other copyrighted work) and sell copies of it through your own NFT platform.

Using blockchain technology in supply chains to track products throughout their lifecycle. This includes verifying that products are authentic and not tampered with before reaching consumers.

8. The NFT Liquidity and market volume.

Liquidity means how easily an asset can be bought or sold without affecting the market price. Liquidity is crucial for any asset manager because it means that you can buy and sell assets quickly without paying a premium. This is important for NFTs because it often means that there will be more buyers than sellers in the market.

Market volume refers to how much money is being traded in a given period (or over a given period). This may be on an exchange or in a peer-to-peer transaction. There are two reasons why this matters: firstly, if there's only one buyer and seller of an NFT at any time, then that might not provide enough liquidity for you to trade with confidence; secondly, if there's only one buyer and seller then their actions could have a significant impact on the token price. So make sure that you know who they are and whether they would be likely to sell at any particular point.

9. Strong community growth and interaction.

For NFTs to be successful, they must have a strong community supporting them. This means that new users can find answers to their questions and experienced users have a place to share their knowledge with others. It also means that many people are looking at the project long-term and thinking about how they can contribute to it.

An excellent way to measure this is by looking at social media channels like Reddit or Telegram activity. This can tell you if people are talking about your token, but it doesn't tell you whether what is being said is positive or negative. A better way is by looking at how many people are posting on forums or answering questions on StackExchange related to your project.

10. The NFT Partnerships

Partnerships are key for NFTs since they can help you reach a wider audience and generate more revenue. There are many ways to approach partnerships for your project, including:

Working with an influencer or celebrity to promote your project. This exposes you to a new audience and helps spread the word about your NFT. It's also perfect for building brand awareness and increasing sales.

Working with other companies in the blockchain space. Working together can create mutual benefits for both parties involved if you have similar goals. This can be as simple as sharing resources (such as using each other's marketing materials), or it can involve cross-promoting their products or services to reach new audiences.

Partnering with an existing company that has already established itself in the crypto world will also help create a better reputation for your business - especially if it is already well known.


The cryptocurrency space is a bit of a Wild West these days. As a result, there's no shortage of misinformation regarding the current state and future of NFTs. Ultimately, it's up to you to do due diligence when evaluating these various projects. However, I hope that the information above offers some explanation for assessing NFT projects beyond simply having hype or speculation behind it.