Crypto token or NFT? Where is it worth investing? This is a question I have asked myself many times. Resources are limited; money is not infinite, so you must decide. Something has to be ruled out. But what?
Crypto tokens have made many people rich, but NFTs are probably the future. So which of the two instruments is more convenient?
I thought long and hard about this question and concluded that the correct answer is “it depends.” It depends on whether you act as an investor or entrepreneur.
In this report, we will look at whether it pays to invest in NFT or crypto from the perspective of the investor and entrepreneur. The two profiles have different interests, so the answers are different.
Tokens and NFTs for the entrepreneur:
I’ll come straight to the point. If you are an entrepreneur, it is better to invest in NFTs. Creating an NFT and selling it offers the entrepreneur much more guarantee of success than the crypto token. The NFT does not have a liquidity pool like the token. If the entrepreneur sells his NFT and the project fails, the money he received from the sale to sell the NFT stays with him.
The same cannot be said for crypto tokens.
Imagine you are selling your NFTs, and it leaks that your project team has broken up for some reason. Panic breaks out in the community, and people decide to sell their NFTs. You have sold your NFTs on the market, and no one can take the money away from you.
Your money is safe.
It’s even better; you can increase your revenues. The more NFT sold the more your commissions. You make money on it in a greedy and bearish market situation.
Vice versa, if you create a crypto token and the project experiences a rough patch, investors can empty the liquidity pool by trading the token for some BNBs or Ethereums. Within hours your dreams of glory can vanish, and with them, your profits.
Tokens and NFTs for the investor.
Things change dramatically if you are an investor. In that case, investing in a crypto token is much better. Imagine investing in a small cap that has just released NFTs, but after a few months, the small-cap project fails.
We know that the mortality rate of small caps is very high. In that case, you would have lost all your money (it has happened to me personally) because no one wants NFTs anymore, and you cannot recover even a part of your investment. You have lost everything.
Things change if you have invested in a crypto token. If the project fails, you can get your money back directly from the liquidity pool. When you realize that things are going wrong (the team is not answering questions, you see strange movements in the etherscan, the roadmap is not respected, etc.), you can immediately withdraw the money from the liquidity pool. This is how I have saved money from some bad investments I’ve invested in.
The escape process is faster because if you realize that the project is not progressing, you can escape immediately.
Conversely, with NFTs, you have to put the NFT up for sale and find a buyer. This is even more complicated if it is an emerging project with few buyers.
Mature projects
But such a line of reasoning also applies to mature projects. Suppose that after a period of growth, the market begins to turn negative. Panic breaks out in the markets. You would like to get rid of your assets, perhaps even accepting a small loss.
If you own the crypto token: within minutes, you sell it on the liquidity pool.
If you own the NFT: you put the NFT up for sale at a price you think is appropriate, but no one buys it. After a few days, you lower the price hoping someone will buy it. But no one is interested. In the meantime, the price decreases, and your loss grows larger and larger.
That’s why a token is a safer investment for an investor because the exit strategy is easier.
Conclusion
We have seen that while the NFT is a better investment for the entrepreneur, the crypto token turns out to be a better investment for the investor. This logic works with almost any project. However, it is evident that this argument does not apply for successful projects. A successful project is highly unlikely to fail. But I am a gem hunter so I work only with gems. My experience is limited in the field of small caps.
Expert in: Google Ads, SEM Expert, PPC Specialist, Paid Social, Facebook, Web Design and DeFi. I work exclusively with successful businesses that are looking to take things to the next level or ambitious startups who give themselves the means to do so. I have experience in many verticals: SaaS, finance, cryptocurrency, retail, real estate, law, IT, medical, pharmaceutical, travel and many more.