I'm assuming that most people reading this article already know what an NFT is, so you can skip the first paragraph where I describe what an NFT is to newcomers.

NFTs are also known as Non-fungible tokens. "Non-fungible" signifies that it is one-of-a-kind and cannot be replaced with anything else. For example, Bitcoin and Ethereum are fungible, which implies that if we exchange one Ethereum for another, we will get the identical thing. A one-of-a-kind trade card, on the other hand, is not fungible. You'd get something altogether different if you traded for another one. If you swapped a "Zion Williamson Rookie" card for a "Bill Rusell Rookie" card, you'd end up with something entirely different in terms of value and appearance. I believe that NFTs have been around for a long time but that we were unaware of them. As an example, I'll use the most popular game right now, Fortnite, although it applies to practically every game. Every Fortnite player desires a skin or a fantastic weapon to acquire greater power-ups or to stand out in-game. These weapons, skins and other items you can obtain in-game are genuine NFTs. The main distinction is that in earlier games, the company owned them, however in this new NFTs revolution, you will own them. You will be able to make money by possessing them. This, I believe, is the simplest description of what an NFT is. An article from last year contains more in-depth information regarding NFTs. Find out more about them right here.

I started in the NFT space in March 2021, and I've witnessed a lot of growth since then. Even though many people are opposed to them or are unaware of their true power, an increasing number of people are eager to join the space and learn more about them. Hundreds, if not thousands, of projects are launched every day for two reasons: some founders want to earn quick money, while others want to remain in it for the long run and aren't solely focused on making money. If you study each of these new projects or even those that have already been released and are active on various marketplaces, you may find that some are here to stay, while others will gradually devalue and be worthless in a few years or sooner.

GaryVee, one of the greatest people alive as well as one of the wisest and most involved in the NFT field, predicts that 98 percent of projects will fail. If I didn't believe it at first, as I started looking at and analyzing some of them, I began to believe his comments. In today's essay, I'd like to share my opinions on the subject and show you some things that I believe are essential for any project that wants to stay in this field for a long time.

The utility is one of the first things I'd want to discuss, and it is, in my perspective, the most crucial. It is hard for an NFT project to succeed if it lacks utility. If people bought and are buying NFTs more for the art than for the utility last year and this year, the balance will shift in the future, and utility will be far more appealing than art.

Consider GaryVee's VeeFriends project, which I'm sure you've heard of. Even though the project's second series will be out this month and the art will be far superior to the first, the project's utility is what makes it wonderful. The art for VeeFriends 1 may have been a lot better, but Gary's main focus was not on the art. He considers the long term and wants to repay those who had helped him. For example, VeeCon will have its first edition this year, and holders of the first series of VeeFriends will have access not just this year but also for the next two years. It is one of the world's largest conferences, bringing together some of the most influential people in this sector and beyond. This is merely an illustration of utility. This project is massive, and being a part of it will provide you with a lot of benefits. This is only one example of a project that will undoubtedly be with us indefinitely due to the things that it is creating and the utility that it provides.

If you've already started your NFT project, you'll need to find a use for it if you want it to last. This is also true for those who desire to start their project. Concentrate on the usefulness rather than the art. It is and will become far more essential once people realize their power and how to use technology to their advantage.

Another element that, in my opinion, is critical in ensuring the long-term viability of an NFT project is trust. Every project must establish trust and provide people the assurance that they will stay on track, eventually causing them to keep their NFTs rather than selling them, lowering the floor, and eventually disappearing. But how can you establish trust? Collaborations are one of the most effective and efficient ways to create trust. If you look at the history of streetwear, you'll notice that collaborations played a massive role in its development. Partnerships generated hype, trust, and unity, as well as brought more people into the field. This is something I believe NFT projects should use as well. The same things that were given to streetwear labels will be brought to NFT brands. Consider it, and in the meantime, I'll offer you an example from the NFT space that best fits this concept.

Do you know who The Hundreds are? If that's not an option, how about Adam Bomb Squad (ABS)? Adam Bomb Squad was created by The Hundreds, a legendary streetwear brand. Bobby and Ben created one of the most successful NFT projects in the space by using their brand's symbol. They're bringing the entire streetwear culture and philosophy to the NFT space. They are one of the first brands in the space to successfully leverage collaborations. The Hundreds announced cooperation between ABS and three NFT projects that are well-liked by the community at the start of this year: Smilesss, DEADFELLAZ, and BRAiN VOMiT. Aside from the fact that The Hundreds continue to distribute only gold to their community in reality, they also do so through ABS. The people and communities on both sides benefited from these relationships.

ABS was able to increase the buzz around the project as well as the other projects, bring people from different projects together and give them the feeling that they can trust each other, create unification between communities from all of the projects involved in the collaboration, and the list goes on. After reading this example, I'm sure you can see why I believe collaborations are so important in developing trust.

The community is the last aspect I consider when it comes to creating a long-term initiative. Your NFT project will last longer if the community is strong. The link between the creators of NFT projects and their communities must be prioritized. When it comes to NFT projects, as well as any other business or venture, it is without a doubt the most significant factor. You are nothing without a community. It's something that everyone has. Walmart, Nike, The Hundreds, VeeFriends, Azuki, and more companies all have their community. It is up to the team in charge of the business/project to look after their community. The things they offer and deliver as well as how they manage to take care of them will decide if people leave it or stick with it for the long term.

Have a look at the Bored Ape Yacht Club ( BAYC ). It is without a doubt the largest and most well-known NFT project. They've grown so large as a result of their community and the things they've done to ensure that it will always be there for them. The Serum Airdrop was the first, and it allowed people to produce a Mutant from their Ape. Then there's the Bored Ape Kennel Club, followed by real-life events and parties, merch, and so on. The $APE coin was recently issued and airdropped to BAYC holders. Even though it was not created by Yuga Labs, the founders of BAYC, there would have been no coin or airdrop without their project. Next? Their metaverse's creation and no one knows what surprises and things they'll come up with for their community from there. Because of the things they've done for their people, they've grown into the largest NFT brand and corporation. This is why crossing the CryptoPunks floor should not surprise you. CryptoPunks is a classic initiative with a lot of potential, but they didn't do anything to benefit their community. Yuga Labs has recently purchased the CryptoPunks and Meebits collections from Larva Labs.

These are the three factors that, in my opinion, play a significant role in determining whether or not an NFT project will be around for the long run. Other things may exist, but these are the most essential to me. I'm looking forward to watching how new projects adapt to what people desire and what utility they may offer to people's lives.

As is traditional, I'll conclude this piece by asking you a question on which I'd love to chat with you on Twitter:

What do you believe will ensure the long-term viability of NFT projects?

Thank you for taking the time to read this! Have a fantastic day!