What is PFP?
If you spend a lot of time on Twitter, you may have noticed a surge in folks using illustrated avatars as their profile picture (PFP). Sometimes, you’ll even notice that their profile pic appears as a soft hexagon instead of Twitter’s usual circle – a unique feature that Twitter has rolled out exclusively for NFT holders.
But why are PFP NFTs such a hit these days? And should you be getting in on the action too? Read on to learn more!
What Is A PFP NFT?
Non-fungible tokens, or NFTs, are unique and irreplaceable digital assets that are stored directly on a blockchain. The term “non-fungible” refers to the fact that an NFT cannot be traded at equivalency like cryptocurrencies. Think of it as a one-of-a-kind trading card that cannot be exchanged for any other card in a collection.
Today, one of the most popular types of NFTs is digital art collections. Individual artists or groups create massive collections of digital collectibles that people can buy, sell, or use as their profile photos on social media platforms like Twitter, Facebook, and Instagram.
Each art project is made up of a collection of avatars, often made up of distinct traits that are digitally generated. An online avatar can simply exist to represent who you are or what you like. Meanwhile, others have a dual purpose, such as granting access to online communities such as a Discord server or as an exclusive club pass, as playable characters in video games, and more.
Some of the most popular examples of PFP NFTS include:
- Bored Ape Yacht Club
- Mutant Ape Yacht Club
- Cool Cats
- Lazy Lions
- Clone X
- World of Women
Why Would You Want To Own A PFP NFT?
Beyond having a cool new profile photo for your social media accounts, owning a PFP NFT can bring about some interesting benefits, such as:
Complete Custody Of Your Assets
The primary appeal of crypto is its ability to offer an alternative finance system outside of intermediaries such as banks and corporations. Owning crypto, including NFTs, means that you have complete custody of your assets.
Plus, your ownership is indisputable, as it’s recorded on an encrypted list called a blockchain. That means that nobody can take away your digital assets without your permission.
Ticket Into A Community
When you purchase an NFT, you automatically gain access to a larger community of people who share the values that the NFT project represents. You don’t even have to join a Discord server to make connections – when you change your PFP into your chosen avatar, you’ll come across people from that community wanting to engage with you. With a community, you can hone your crypto chops and trade insights and advice with each other.
Most people who are NFTs treat them as collectible items for trading later on. Thus, they pay close attention to things like rarity, price, the project’s roadmap, the community, the team, and even the quality and aesthetic of the design.
All of these factors influence an NFT’s value later on, along with the project’s performance on exchanges. Most crypto enthusiasts will buy tokens at mint prices and then flip them once the project gains traction.
How Can You Make Sure A PFP NFT Is Legit?
You may feel compelled by FOMO to buy an asset that’s supposedly going to the moon soon. But if you want to avoid getting rekt, make sure to do your due diligence and DYOR on these factors first:
The Project’s Community
Communities are a great way to gauge whether a project is good or bad. Firstly, you’ll want a community that isn’t just active on social media and on Discord but one that has a positive presence as well.
Evaluate how members talk to each other and people outside of the community, as well as how the crypto community as a whole views them.
Another thing to note is whether members like to discuss floor price a lot. You don’t want to join a project where the holders are invested solely in trying to pump up the project for their own sake. This is a short-sighted approach that could lead to the quick demise of a project.
The Roadmap And Team
An NFT roadmap is a document that maps the milestones, goals, and strategies of the creators for the success of the project. You could also think of it as a pitch deck. A trustworthy NFT project is one where the team is transparent about where it plans on taking the project.
Transparency is also incredibly important when it comes to the project’s creators. Yes, a lot of NFT projects are run by anonymous creators, but it shouldn’t be hard to dig up useful information on their performance and reliability in the crypto space. If you can’t find anything at all on a project’s team, proceed with caution.
You should also consider the uniqueness of a project’s roadmap. If it’s something you’ve seen before, then it probably won’t be as valuable later on. But if the project attempts to offer a novel concept or strategy, this will likely result in a better investment for you.
When scouring the markets for upcoming projects to turn into your latest PFP, remember to look into whether that project has a strong community, a reliable team, and a unique roadmap.
If you want to start your own NFT collection, Tokenfy can help. Check out our site today and learn how our NFT launchpad can help you kickstart your own NFT project today!
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