PFP NFT Strategies – Crypto Business Show Episode 1
Rob: Hello everybody welcome to the new crypto business podcast brought to you by TokenMinds.co. I’m your host Rob Eijgenraam, director at TokenMinds, a blockchain agency that combines all the crypto disciplines from marketing to development. In this podcast, we are gonna talk about any blockchain topic that’s relevant for businesses and entrepreneurs. Today’s topic is pfp nft strategies. I have a podcast with me today Anchor and Josh. Anchor is a veteran crypto marketer from the international as well as the Asian market, and Josh is an experienced blockchain developer manager working on various pfp nft projects. Before we dive into the marketing and development strategies, let’s just talk a little bit about what pfp nfts are exactly. So I think most of you are familiar with crypto punks and that’s like basically your genesis pfp nfts project which basically means that it’s used for profile pictures. So usually they have a limited supply, and there are slight variations for every nft minted, so every nft obviously is unique but there are some different attributes like you know different backgrounds different hats, different skin colors, different accessories, etc., and right now the biggest one is the board ape yacht club. If you go to rarity.tools which is one of the ranking websites for nfts kind of like the coin market cap for nfts, you can see that the floor price is around 80 Ethereum which is at the time of recording around 250K USD, and there are ten thousand in existence, and yeah they are doing very well, then we have the world of women a similar concept but a different team and you can see their floor price is lower, around eight Ethereum, so I figure out two native or twenty-five thousand dollars, also a limited supply of ten thousand. So one nft project that is a good example of what is not a pfp nft is cryptokitties, so obviously, it’s based on the same technology erc721 but the difference is that they are not limited supply, so anybody can breed them which makes their price not very stable and you can also see that their 90-day average actually a lot lower whilst one of the oldest nft projects so it’s right now around 0.08 Ethereum, which I think is around 250 dollars, still a lot of money but obviously a lot less than the others. So how are these projects usually set up? So usually they have their own community and website where people can go to mint them, and they have an initial mint of their supply whether it is one thousand, five thousand, or ten thousand, people can go there they connect with either their metamask or another wallet, and they will be randomly allocated one of the pfp nfts when they click, so this is an example the crop collective, I can connect my wallet, and it will pop up meta mask will show a special minting page and I can actually participate in the public sale, so I will pay obviously gas fees and a fee on top which you know depending on the project will raise a little bit in price but that money will go to the project itself for its further development, and then they’re free to trade on marketplaces like opensea for example. So now that we know a little bit more about what pfp nfts are, let’s go to Josh to talk a little bit about the pfp nft development strategies.
Josh: Thanks Rob, thanks for having me. So for the pfp nft development strategies, this is very important especially if you’re new in the crypto space, you need to find a team to build your pfp nft project, and that team needs to be aware of the standard processes to make sure that the project is successful, so there are standard processes in developing a pfp nft, it all starts with determining the smart contract specifications and the minting page reside from the client so usually we request for information like minting fees, airdrop mint total, whitelist in total airdrop addresses, wireless addresses and then specific traits that they wanted to put under nfts after that based on the specification provided or the details provided by the client then if the assets will then be created and uploaded to a third-party asset hosting like Pinata, eventually we’ll start working on the design in the front-end application and this will be done in parallel with the smart contract development. When the development of this front end of the smart contract is done we’d start to integrate them in a test environment for the smart contract it’s deployed in the Ethereum testnet where it will be rigorously tested because it is very important to test smart contract because if they are deployed it is already immutable, and it will cost us thousands of dollars to redeploy on your smart contract, especially in the Ethereum mainnet. After all this internal testing is done we then submit our smart contract for an external audit to determine if there are any issues or any security loopholes, this is a very important process because it assures that the smart contract is safe and trustworthy, after that we need to address all the audit findings and then if all the audit findings were addressed we then deploy the smart contract to the choice blockchain network, in this case, majority of the clients choose Ethereum main net because of the higher liquidity but polygon is also gaining popularity because of the lesser gas fees, then the planting application is also deployed in the production environment, and when everything is up and running we then start the turnover to the client by transferring the ownership of the smart contract so that’s the useful standard process in developing a pfp nft project.
Rob: All right thank you for that Josh. So regarding the smart config part right I imagine there’s a lot more to it than just a smart contract although of course, it’s a very essential part when there’s a sale there’s, of course, the website there’s an NMS integration you mentioned Pinata so ipfs hosting, so I guess some of that a lot of that is similar for a lot of projects are there any things that you see in the projects that that you’re doing and did so far which could be kind of differences between projects regarding the development?
Josh: There are some projects that would require smart contracts that deal with auction and lottery, this is not the usual minting smart contract but you just mint and randomize a pfp nft contract this would let their community be able to bid on certain pfp nft but are limited edition or rare in nature. Additionally, they also have a lottery that allows the community to bid and then win nfts based on the smart contract.
Rob: Okay so that’s quite interesting. There are a lot of possibilities for projects to develop and I guess they could potentially also have their own marketplaces that have some special benefit for the nft holders and stuff so yeah thank you Josh appreciate that and I think there’s probably a lot more to it that we can do that in further podcast maybe some deep dives into specific things like the testing process and maybe other aspects as well. Anchor let’s talk a little bit about your experience in crypto marketing, maybe some general strategies for pfp nft projects specifically.
Rob: Yeah sure and first thank you, Josh, for sharing all the experience rights for the nft development. So, yeah as a basis of the nft projects, I think for sure the security the optimization, and all the smart contract running the testing is very important as a key, you know for the success of a project, and also here I will explain for sure like more information about the nft marketing strategy so again like a proper marketing strategy it’s really very critical for us building a success. We see you know especially in recent several months a lot of new nft projects every day and the solution like how to promote them in an effective way really make a big difference so the whole strategy. First, I think for the nft projects it is very important also for you to know the whole project you know all the designs for sure it’s always important like what we see from 2d to bonsai and to 3D and even better illusions and concepts s well as a good road map to attributes more like a utility to nft like tokens, metaverse, gamefi solutions or maybe in the future any new utility that can contribute to nft projects, so for the marketing side especially from the beginning I think for all the nft projects right it’s very important and also very hard because from beginning nobody knows it’s from zero and then we need to get actually some community like hype and social media and the user base to you know to do some fusion marketing use these initial like participants. So what we normally see is that you know first from beginning we normally can do something like awareness building like some giveaways, airdrop to get the people initially on board to the community, and then also like generates a lot of high quality contents like the post on social media to regularly posting the server to make other early participants to understand the project well and share to their friends or you know, so about this and also we normally suggest that actually some PR and also on some crypto media it’s also very important to build the trustworthy of you know the whole project, we see actually increasing traffic on those crypto media website they’re also focusing a lot recently on nft projects from normal like token or traditional blockchain products, so it’s where it’s well actually what they have to do this, and then it’s also several other elements actually to contribute to the success for sure like some influencer promotion that some really high quality of influencers that really influence show in the nft field like some mayc boredapes, cryptopunk soldiers, some of them even have their own projects so we can try to connect or build a relationship with them as well as unlike some collaborations with some a lot others like alpha projects or some like really good projects normally it’s after the mint because they also want to offer some like benefits to their know users and members, if they see any potential projects that they want to collab with this is also also a good way to do some cross marketing, and other than that like i said the community and social media build office very important, so we once we get people on board we can use these people like running some like events like a referral, like a level event to make them engaged more often in community, to create hype, and other side we can also motivate them to invite their like friends or to the chat, so it’s like one thousand to two thousand and four thousand like this, and then for sure that’s it’s also very important with all the like whitelist strategy, and everything like build the hype like every segment different strategies of each phase or something that is, this actually can be very flexible based on the market status based on the in general the engagement community, and like days or several days before the meeting or during maintaining is also very important because we need to keep the hype of community for sure, especially during those days so besides those what Josh said to make sure that the smart contracts are good, tested on urban cities redundant on test net also it’s very important we get more hype and the continuous like engagement in the chat around the minting, so what we normally suggest that we do anything like AMAs, no matter link telegram or discord, working with some really high quality of the AMA groups or even like AMA in their own channel to get people really hyped and explain them okay what the project is about what we’re going to do you know to show them it’s actually a very long vision project for sure we also need to do a lot of more like poster nft minting, and like those developments for the future roadmap no matter what matter versus your game all the tokens etc, but those actually Ii think we can explain further in the next podcast. So yeah this is mainly on the nft projects from the beginning to the main team and how to make it a real success. So yeah thank you for listening, this is what I want to share.
Rob: Great thank you Anchor appreciate it, and again just like Josh, there are a lot of points I think we can go into further detail in the next podcast. So maybe our listeners can share some of their thoughts in you know the comments if they want to hear something specifically if we want to you know go into that topic a little bit more because there is quite some content here that we just went over very quickly. I think a lot of people will probably have some information overload but Anchor maybe you could pick out one of those things for pfp nft marketing strategies if you could in this podcast give one thing to our listeners, what piece of advice would you give them regarding promoting their project.
Anchor: Yeah I think the most important that that’s no matter for like influencer promotion like for all these kinds of PR and you know the ads promotion, the most important part is that first I think it’s somewhat like something like more detailed things so we need to focus on those audience targets of the audience though. You know we have a lot of nft projects right for something like a 2d or 3d but it’s always like for like collaborations influencers we can actually check what they normally focus on, so I know that some influencers and some PR they really prefer like a 3d model, some really still into those like classic ones like with cryptopunks or pixel style or 2d or like boredapes, so for example if one project they are focusing on like you know animals or something like that we can check okay which influencers which other servers collaborations we can focus on because they might show quite high interest and it’s also easier for us to do some collaboration with them like the promotion, but still that’s this is actually something we need to think of actually to make the best use of that and more efficiency.
Rob: Okay very good. Thank you, Anchor. So that’s pretty much it for this podcast to make it as compact as possible, I just want to give the audience one other tip, our data analyst at TokenMinds created a very nice Google data studio dashboard where you can see all the information about nft performance from different sources combined. So we will leave a link for you guys in the show notes where you can see how much nfts are selling for different nft launch pads, different trends in different regions, because there’s quite some difference in nft popularity between you know Asia, Europe, and the united states, so and also different marketing sources like for example you could see that Twitter is a very important source for nft sales. So to leave with that, thank you, everybody. Thank you Josh, and thank you Anchor for your time.
Anchor: Thank you.