NFT Project Analysis
Comprehensive framework for evaluating NFT projects and providing investment recommendations. Focuses on fundamentals, red flags, and risk assessment rather than speculation.
When to Use
- User asks to analyze an NFT collection
- User asks "should I buy this NFT?"
- User wants to evaluate NFT project health
- User asks about NFT price trends or investment potential
Analysis Framework
1. Data Collection
Primary sources:
- OpenSea (floor price, volume, holders, sales)
- Blur, LooksRare, Rarible (alternative marketplaces)
- Twitter (community size, engagement, updates)
- Discord/Telegram (community activity, team presence)
- Etherscan/blockchain explorer (contract, holder distribution)
- Project website (roadmap, team, utility)
Key metrics:
- Floor price (current + historical)
- Trading volume (24h, 7d, 30d)
- Total volume (all-time)
- Unique holders
- Total supply
- Recent sales activity
- Listed count (how many NFTs are listed for sale)
- Marketplace presence (which platforms list the collection)
- Social media followers
- Community engagement
CRITICAL: Check marketplace liquidity FIRST
- Verify NFT is actually listed on marketplaces (OpenSea, Blur, etc.)
- Check on-chain holders count (0 holders = NFTs stuck in contract)
- Verify contract is verified on block explorer
- If zero marketplace presence + zero holders = DEAD MARKET (instant avoid)
2. Chart Pattern Recognition
Healthy patterns:
- Gradual uptrend with consolidation zones
- Higher lows, higher highs
- Multiple horizontal support levels
- Steady volume growth
- Low volatility
Death patterns:
- Pump & dump (sharp spike → crash)
- Death spiral (continuous decline, no support)
- Extreme volatility (0 → peak → 0 → peak → 0)
- Declining volume
- No consolidation zones
Example death chart:
Launch: 0.1 ETH (accumulation)
Month 2: 0.5 ETH (PUMP — 5x in days)
Month 3: 0.0 ETH (CRASH — rug pull)
Month 4: 0.4 ETH (dead cat bounce)
Month 5: 0.003 ETH (death spiral)
Pattern: TEXTBOOK RUG PULL
3. Red Flags Checklist
Critical red flags (avoid immediately):
- ❌ Zero marketplace listings (not on OpenSea/Blur/any platform)
- ❌ Zero holders on-chain (NFTs stuck in minting contract)
- ❌ Unverified contract (can't verify legitimacy)
- ❌ Floor price < $10 (death territory)
- ❌ No Discord/Telegram (dead community)
- ❌ Zero market cap
- ❌ No development updates in 3+ months
- ❌ Wash trading (high sale count, tiny values)
- ❌ No utility (pure collectible)
- ❌ Team anonymous + no roadmap
- ❌ Pump & dump chart pattern
- ❌ 90%+ decline from peak
- ❌ No recovery catalysts
Warning signs (proceed with caution):
- ⚠️ Small community (< 5k Discord members)
- ⚠️ Low liquidity (< 10 ETH daily volume)
- ⚠️ High holder concentration (top 10 hold > 50%)
- ⚠️ Declining social engagement
- ⚠️ Delayed roadmap milestones
- ⚠️ No partnerships or integrations
Positive signals:
- ✅ Active Discord (10k+ members, daily activity)
- ✅ Regular development updates
- ✅ Real utility (gaming, metaverse, membership)
- ✅ Partnerships with established projects
- ✅ Doxxed team with track record
- ✅ Healthy chart (uptrend, support levels)
- ✅ Growing community
- ✅ Blue-chip status (BAYC, Azuki, Pudgy Penguins)
4. Risk Assessment
Calculate probability-weighted expected value:
Scenarios:
1. Best case (5-10%): 3-10x gain
2. Most likely (70-80%): -50% to +50%
3. Worst case (10-20%): -90% to -100%
Expected value = (P1 × Gain1) + (P2 × Gain2) + (P3 × Loss3)
If EV < 0: AVOID
If EV > 0 but high risk: CAUTION
If EV > 0 and low risk: CONSIDER
Risk levels:
- EXTREME (10/10): Death spiral, abandoned project, rug pull signs
- HIGH (7-9/10): Declining metrics, weak community, no utility
- MEDIUM (4-6/10): Mixed signals, execution risk, market dependent
- LOW (1-3/10): Blue-chip, strong fundamentals, active development
5. Comparison with Similar Projects
Compare against:
- Blue-chip NFTs (BAYC, Azuki, Doodles)
- Same category (PFP, gaming, metaverse)
- Similar launch date
- Similar supply size
Metrics to compare:
- Floor price trajectory
- Volume trends
- Community size
- Development activity
- Utility/roadmap execution
Recommendation Framework
BUY (Serok)
Criteria:
- ✅ All fundamentals strong
- ✅ Active community (10k+ Discord)
- ✅ Regular development updates
- ✅ Real utility or roadmap
- ✅ Healthy chart (uptrend, support)
- ✅ Expected value > 0
- ✅ Risk level: LOW to MEDIUM
Example: Blue-chip NFT during temporary dip
HOLD
Criteria:
- 🟡 Mixed signals
- 🟡 Some red flags but not critical
- 🟡 Execution risk
- 🟡 Expected value ≈ 0
- 🟡 Risk level: MEDIUM
Example: Established project with delayed roadmap
AVOID (Jangan Serok)
Criteria:
- ❌ Multiple critical red flags
- ❌ Death spiral chart pattern
- ❌ Dead community
- ❌ No development
- ❌ Expected value < 0
- ❌ Risk level: HIGH to EXTREME
Example: Project with $8 floor, no Discord, 95% down from peak
Response Format
Structure:
- Executive summary (BUY/HOLD/AVOID + one-line reason)
- Current metrics (floor, volume, holders)
- Chart analysis (pattern recognition)
- Red flags and positive signals
- Risk assessment (probability-weighted)
- Comparison with similar projects
- Final recommendation with reasoning
Tone:
- Direct and honest (don't sugarcoat bad projects)
- Data-driven (cite specific metrics)
- Risk-aware (acknowledge uncertainty)
- Actionable (clear buy/hold/avoid)
- Lead with risk assessment — users want to know "is this high risk?" upfront, not buried in analysis
- Label risk level prominently — use visual markers (🔴 EXTREME, 🟡 MEDIUM, 🟢 LOW) early in response
For Indonesian users:
- Use "serok" for "buy the dip"
- Use "jangan serok" for "don't buy"
- Keep technical terms in English (floor price, volume, etc.)
- Explain reasoning clearly
- When user says "mantep ini untuk high risk" — they appreciate direct risk labeling and want it upfront, not buried
Pitfalls
- Don't rely on hype — community excitement ≠ good investment
- Don't ignore red flags — one critical red flag can sink a project
- Don't assume recovery — death spirals rarely reverse
- Don't compare apples to oranges — compare within same category
- Don't forget opportunity cost — even if project survives, better options may exist
Verification
- Cross-reference data from multiple sources (OpenSea + Twitter + Discord)
- Check contract on Etherscan for holder distribution
- Look for wash trading (same wallets trading back and forth)
- Verify team claims (partnerships, roadmap milestones)
Example Analysis
See references/numismatis-nft-analysis.md for full example of death spiral project analysis.
See references/ardinals-dead-market.md for agent-only NFT with zero marketplace liquidity (dead market despite active minting).
See references/cloudflare-blocked-workflow.md for workflow when OpenSea blocks direct access (Cloudflare protection).
1---2name: nft-analysis3description: Analyze NFT projects for investment decisions — evaluate fundamentals, identify red flags, assess risk, and provide buy/hold/avoid recommendations4triggers:5 - analyze NFT project6 - should I buy this NFT7 - NFT investment analysis8 - is this NFT a good investment9 - NFT project evaluation10 - NFT due diligence11origin: unknown12source_license: see upstream13language: en14---1516# NFT Project Analysis1718Comprehensive framework for evaluating NFT projects and providing investment recommendations. Focuses on fundamentals, red flags, and risk assessment rather than speculation.1920## When to Use2122- User asks to analyze an NFT collection23- User asks "should I buy this NFT?"24- User wants to evaluate NFT project health25- User asks about NFT price trends or investment potential2627## Analysis Framework2829### 1. Data Collection3031**Primary sources:**32- OpenSea (floor price, volume, holders, sales)33- Blur, LooksRare, Rarible (alternative marketplaces)34- Twitter (community size, engagement, updates)35- Discord/Telegram (community activity, team presence)36- Etherscan/blockchain explorer (contract, holder distribution)37- Project website (roadmap, team, utility)3839**Key metrics:**40- Floor price (current + historical)41- Trading volume (24h, 7d, 30d)42- Total volume (all-time)43- Unique holders44- Total supply45- Recent sales activity46- **Listed count** (how many NFTs are listed for sale)47- **Marketplace presence** (which platforms list the collection)48- Social media followers49- Community engagement5051**CRITICAL: Check marketplace liquidity FIRST**52- Verify NFT is actually listed on marketplaces (OpenSea, Blur, etc.)53- Check on-chain holders count (0 holders = NFTs stuck in contract)54- Verify contract is verified on block explorer55- If zero marketplace presence + zero holders = DEAD MARKET (instant avoid)5657### 2. Chart Pattern Recognition5859**Healthy patterns:**60- Gradual uptrend with consolidation zones61- Higher lows, higher highs62- Multiple horizontal support levels63- Steady volume growth64- Low volatility6566**Death patterns:**67- Pump & dump (sharp spike → crash)68- Death spiral (continuous decline, no support)69- Extreme volatility (0 → peak → 0 → peak → 0)70- Declining volume71- No consolidation zones7273**Example death chart:**74```75Launch: 0.1 ETH (accumulation)76Month 2: 0.5 ETH (PUMP — 5x in days)77Month 3: 0.0 ETH (CRASH — rug pull)78Month 4: 0.4 ETH (dead cat bounce)79Month 5: 0.003 ETH (death spiral)8081Pattern: TEXTBOOK RUG PULL82```8384### 3. Red Flags Checklist8586**Critical red flags (avoid immediately):**87- ❌ **Zero marketplace listings** (not on OpenSea/Blur/any platform)88- ❌ **Zero holders on-chain** (NFTs stuck in minting contract)89- ❌ **Unverified contract** (can't verify legitimacy)90- ❌ Floor price < $10 (death territory)91- ❌ No Discord/Telegram (dead community)92- ❌ Zero market cap93- ❌ No development updates in 3+ months94- ❌ Wash trading (high sale count, tiny values)95- ❌ No utility (pure collectible)96- ❌ Team anonymous + no roadmap97- ❌ Pump & dump chart pattern98- ❌ 90%+ decline from peak99- ❌ No recovery catalysts100101**Warning signs (proceed with caution):**102- ⚠️ Small community (< 5k Discord members)103- ⚠️ Low liquidity (< 10 ETH daily volume)104- ⚠️ High holder concentration (top 10 hold > 50%)105- ⚠️ Declining social engagement106- ⚠️ Delayed roadmap milestones107- ⚠️ No partnerships or integrations108109**Positive signals:**110- ✅ Active Discord (10k+ members, daily activity)111- ✅ Regular development updates112- ✅ Real utility (gaming, metaverse, membership)113- ✅ Partnerships with established projects114- ✅ Doxxed team with track record115- ✅ Healthy chart (uptrend, support levels)116- ✅ Growing community117- ✅ Blue-chip status (BAYC, Azuki, Pudgy Penguins)118119### 4. Risk Assessment120121**Calculate probability-weighted expected value:**122123```124Scenarios:1251. Best case (5-10%): 3-10x gain1262. Most likely (70-80%): -50% to +50%1273. Worst case (10-20%): -90% to -100%128129Expected value = (P1 × Gain1) + (P2 × Gain2) + (P3 × Loss3)130131If EV < 0: AVOID132If EV > 0 but high risk: CAUTION133If EV > 0 and low risk: CONSIDER134```135136**Risk levels:**137- **EXTREME (10/10):** Death spiral, abandoned project, rug pull signs138- **HIGH (7-9/10):** Declining metrics, weak community, no utility139- **MEDIUM (4-6/10):** Mixed signals, execution risk, market dependent140- **LOW (1-3/10):** Blue-chip, strong fundamentals, active development141142### 5. Comparison with Similar Projects143144**Compare against:**145- Blue-chip NFTs (BAYC, Azuki, Doodles)146- Same category (PFP, gaming, metaverse)147- Similar launch date148- Similar supply size149150**Metrics to compare:**151- Floor price trajectory152- Volume trends153- Community size154- Development activity155- Utility/roadmap execution156157## Recommendation Framework158159### BUY (Serok)160**Criteria:**161- ✅ All fundamentals strong162- ✅ Active community (10k+ Discord)163- ✅ Regular development updates164- ✅ Real utility or roadmap165- ✅ Healthy chart (uptrend, support)166- ✅ Expected value > 0167- ✅ Risk level: LOW to MEDIUM168169**Example:** Blue-chip NFT during temporary dip170171### HOLD172**Criteria:**173- 🟡 Mixed signals174- 🟡 Some red flags but not critical175- 🟡 Execution risk176- 🟡 Expected value ≈ 0177- 🟡 Risk level: MEDIUM178179**Example:** Established project with delayed roadmap180181### AVOID (Jangan Serok)182**Criteria:**183- ❌ Multiple critical red flags184- ❌ Death spiral chart pattern185- ❌ Dead community186- ❌ No development187- ❌ Expected value < 0188- ❌ Risk level: HIGH to EXTREME189190**Example:** Project with $8 floor, no Discord, 95% down from peak191192## Response Format193194**Structure:**1951. Executive summary (BUY/HOLD/AVOID + one-line reason)1962. Current metrics (floor, volume, holders)1973. Chart analysis (pattern recognition)1984. Red flags and positive signals1995. Risk assessment (probability-weighted)2006. Comparison with similar projects2017. Final recommendation with reasoning202203**Tone:**204- Direct and honest (don't sugarcoat bad projects)205- Data-driven (cite specific metrics)206- Risk-aware (acknowledge uncertainty)207- Actionable (clear buy/hold/avoid)208- **Lead with risk assessment** — users want to know "is this high risk?" upfront, not buried in analysis209- **Label risk level prominently** — use visual markers (🔴 EXTREME, 🟡 MEDIUM, 🟢 LOW) early in response210211**For Indonesian users:**212- Use "serok" for "buy the dip"213- Use "jangan serok" for "don't buy"214- Keep technical terms in English (floor price, volume, etc.)215- Explain reasoning clearly216- When user says "mantep ini untuk high risk" — they appreciate direct risk labeling and want it upfront, not buried217218## Pitfalls219220- **Don't rely on hype** — community excitement ≠ good investment221- **Don't ignore red flags** — one critical red flag can sink a project222- **Don't assume recovery** — death spirals rarely reverse223- **Don't compare apples to oranges** — compare within same category224- **Don't forget opportunity cost** — even if project survives, better options may exist225226## Verification227228- Cross-reference data from multiple sources (OpenSea + Twitter + Discord)229- Check contract on Etherscan for holder distribution230- Look for wash trading (same wallets trading back and forth)231- Verify team claims (partnerships, roadmap milestones)232233## Example Analysis234235See `references/numismatis-nft-analysis.md` for full example of death spiral project analysis.236237See `references/ardinals-dead-market.md` for agent-only NFT with zero marketplace liquidity (dead market despite active minting).238239See `references/cloudflare-blocked-workflow.md` for workflow when OpenSea blocks direct access (Cloudflare protection).