When a new crypto or NFT project launches, some people tend to be wary that it could be vaporware. But what is vaporware, and why is it a bad thing? Read on to find out just what it means when a crypto project or NFT collection is called vaporware.
What Is Vaporware?
Vaporware is a computing and software term to call a product, software, or project that’s been announced to the public but has never been seen or officially launched. Note that vaporware has no connections with vaporwave music, aside from its similar name.
Many things cause products to become vaporware, whether it’s an overly-confident developer announcing a release too early or troubled development pushing back the release date repeatedly.
One of the most famous examples of vaporware came from Ovation Technologies, which held a demo of its Ovation office suite to great acclaim. However, Ovation Technologies never released the product and went bankrupt soon afterward.
Vaporware works somewhat similarly in the crypto community, where developers would hype up coins and NFT projects for months, even years before release. So, why announce something that doesn’t exist yet? In the crypto space, developers can announce a coin or a blockchain project far before its actual release to artificially inflate the value of its coin.
Why Does Vaporware Exist?
Vaporware can be caused intentionally or unintentionally. But why do they even exist in the first place? Here are several reasons why a project or software becomes vaporware:
While it may sound counterintuitive, vaporware can be used as a market testing tool. A crypto project team can announce their new coin or NFT collection and see how the community reacts to it. If the community likes the idea, they can move forward with the project. Conversely, if the community is lukewarm to it, they may pull the plug then and there.
Driving Off Competition
Vaporware can also be a way to weed out the competition. Announcing a product before a rival company gives off a message that says, “This is my turf now”. In addition to potentially warding off rivals from developing a similar product, it also tends to secure customer loyalty because they know the software is coming and won’t look for alternatives.
Vaporware can simply happen due to mismanagement and troubled development. Whether it’s an overambitious executive announcing the product far before it’s ready for release or mounting issues forcing a delay, vaporware can happen unintentionally.
If a software reaches vaporware status unintentionally, there can only be two outcomes: it either releases after years of waiting or completely vanishes into the ether, never to be seen again.
How To Spot Vaporware
Sometimes, vaporware can be hard to spot. You may be hyped for a new coin or NFT launch, but then it ends up disappearing through the Internet’s attention cracks. To make sure you don’t end up buying into vaporware, do these three things:
Take the time to look up the project developers and their track records. Examine their past projects, and see whether they have communication issues with the community or a history of ignoring complaints.
By researching the project team and what they’ve done in the past, you can set your expectations accordingly. If this project team is known to be slow but finishes their work every time, you know to be patient. However, if they have a history of abandoning projects midway, then you may not want to buy into what they’re selling.
Ask Lots Of Questions
Good crypto and NFT developers should be transparent and open to community questions. Attend AMAs and contact the project’s social media accounts to ask anything you need to know about the project. If they don’t give a straight answer, it may be a cause for caution.
At the end of the day, you need to be critical and skeptical. Ask yourself, “Is this project too good to be true?” If the answer is yes, then chances are your gut instincts are right.
Is NFT Vaporware?
In its early years, NFT was thought to be vaporware. The very concept of digital items being sold with an artist resale royalty paid for every transaction made seems too good to be true for many. However, paying for artworks in Bitcoin and other crypto didn’t disappear from the Internet’s notably short attention span.
Today, the NFT art movement is as strong as ever, championing artist resale rights and minimizing artist risks when selling artwork to the general public.
Can Vaporware Be Legitimate?
The main definition of vaporware is that there’s no product to actually see and use, which sometimes leads to long-gestating legitimate projects being called vaporware. However, many cryptocurrencies billed as vaporware can end up being legitimate.
Take TRON, founded by Justin Sun and Charles Hoskinson’s ADA, for example. Their coin and blockchain projects have been called vaporware in the past but ended up becoming two legitimate projects to invest in.
Investing in something that turns out to be vaporware can be frustrating. That’s why doing your due diligence is essential. Be skeptical and always ask questions.
If you’re planning to create an NFT project that’s not vaporware, Tokenfy is here for you. Visit our site today to take advantage of our NFT launchpad services!