What NFT Collectors Are Looking For?

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·@finguru·
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What NFT Collectors Are Looking For?
Today I saw this interesting Infographic which every NFT Creator and/or Hodler should be looking at (fig1). It's important to understand why most people buy or trade NFTs in the first place. There was an NFT & Crypto users survey conducted by Coingecko and Blockchain Research Lab in late December last year and published in Jan, 2023. 

![screely1681999207625.png](https://images.hive.blog/DQmQksfViAKZnxoV4tHaB1Uxx3e54UHfbz6X7Ao9yAGWctN/screely-1681999207625.png)

<center> <sub> fig1: sourced from coingecko.com </sub> </center>

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According to me, 343 Survey participants are not enough to get a concrete overview of investing behavior. But as you can see from above graphic, NFT collectors prefer the following in the same order:

<h3> Profit in the long term </h3>

Many NFT collectors view their investments as a long-term strategy including myself. They hope that the value of their NFTs will appreciate over time, generating a profit. This can be driven by several factors like the rarity of the NFT, the popularity of the artist or creator, the growth of the overall NFT market, and the demand for its utility. Finding such NFTs requires an effort to research and drill down high-potential projects and you have to have a diamond-hand mindest. 

<h3> Utility </h3>

Utility refers to the benefits that an NFT can provide to its hodlers. Some NFTs offer unique functionality within a specific platform or ecosystem, such as access to exclusive clubs or content, in-game items, or voting rights. It could be anything that creates demand over time or sometimes instantly. As an NFT collector myself, I prioritize utility as a key factor in my investing decisions, as it can add more value beyond the ownership aspect. 

<h3> Profit in the short term </h3>

Some NFT collectors aka NFT Flippers are looking for quick gains and may prioritize NFTs that are likely to appreciate in value rapidly. Mostly as soon as the collection is released. These investors might focus on new or trending projects, limited edition releases, or popular artists in order to capitalize on short-term market fluctuations and sell their NFTs for a profit sooner rather than later. I have done this myself and it's extremely risky. Don't do this until you don't know what you are getting into. Without knowledge, it's gambling. 

<h3> Gain stake in Project/DAO </h3>

Some NFTs are associated with projects or Decentralized Autonomous Organizations (DAOs) that allow their holders to gain a stake in the project's governance or future development. NFT collectors who prioritize this factor are typically looking for opportunities to participate in the decision-making process and influence the direction of a project they are passionate about. On Hive, Splinterlands work in a similar fashion, but instead of an NFT, you need to hold $SPS tokens which is fungible in nature. 

<h3> Enthusiasm For Tech </h3>

Some NFT collectors are driven by a genuine interest in the underlying technology of blockchain and the potential of NFTs to revolutionize digital ownership, creativity, and decentralization. These collectors may prioritize NFTs that push the boundaries of the technology, showcase innovative use cases, or represent the pioneering spirit of the crypto and NFT space. They are generally the early adopters of any new development within the space and I personally love this group of people. Because they are trendsetters and the rest of the folks follow them. 

Hopefully now you get the idea of how different investors behave while buying NFTs. If you are someone creating an NFT collection, it's important to understand this behavior to plan and act accordingly. Also, let me know in the comment section about your major reason for putting your money in NFTs. 
 
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<center><sub>Not financial advice. For infotainment purposes only.</sub></center>





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