So I had to learn the lesson the hard way myself, I minted 2 NFT´s just to realize a day later that the creator just took off running with the eth. It was a lesson that cost me some money but one that I will learn a lot from.
After reflecting upon what happened it was clear to me that if I had done more research I would have avoided this.
First and most importantly: do your own research, I got caught up following my emotions and investing in a promise of getting a passive income and a huge increase in price.
I created this checklist for myself to avoid getting the rug pulled on me again and wanted to share it with you.
- How many followers do they have on Twitter? Are the followers mostly real or are they bought? Excellent blog piece for this here
- The domain they are using, is it purchased anonymously? If it is, this could be a red flag?
- Is there a team listed on the website that is behind the project? Often there is a team, but without picture. But if there are no team listed at all this is a red flag.
- What is the discord channel like? Are the founders active?
- Are what the project is promising believable? If it´s too good, it´s probably not true.
- Are they using the word “official” in their name? If they are that´s a red flag.
- Do they have a technical explanation / plan for the project? In this case, they claimed they were going to allow for staking, but they did not offer any information about how it would actually work?
- Have they done a town hall / AMA before the mint? If they have not, this is a red flag.
- Have they done any other NFT projects?
I´m sure there are plenty more good questions to think about before buying into an NFT project, let me know in the comments.