Buying an NFT? Ask these five questions before investing

economictimes.indiatimes.com:

NFTs, the NFT sales are plummeting due to the current market scenario. NFT traders are either shying away from investing or unaware of analyzing the NFT price values before dipping their toes in. An NFT trade born out of this inexperience, results in a loss.Why should you know about NFT price value before investing?NFTs are popular online commodities. Once they are bought and traded over time, there is the possibility for recurring income. NFT valuations are critical and skyrocket due to fanaticism, royalty economics, and scarcity rules.So, what can an NFT price value tell you?Estimating the price value of the NFTs will help us to uncover the following.

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How scarce is the NFT?With a scarce NFT, the project tends to attract more people. This increases the demand for the collection and the price. The best example of this is BAYC collection and ApeCoin, which has created more demand in the community.What is the rarity of the NFT in that particular collection?Forget the collection as a whole. The rarity of each NFT in a collection also plays a key role in the increased pricing of the collection itself.What utility does an NFT collection hold?Blockchain technology leveraged this use case of NFTs efficiently with NFT ticketing. Most utility NFTs are being used to unlock the entry to events or get the privilege of getting a hot seat in an activity. VeeFriends, GainForest, and World of Women are some examples