With NFTs taking the world by storm, some have sold for eye-watering amounts. One of the most memorable was an NFT by Beeple, which sold for $69 million.
However, not all NFTs are created equal. To find a valuable NFT, it is important to ensure that it is rare.
How To Identify The Rarity Of An Nft
Those who are active in the NFT market dream of finding the next rare NFT that will see their investment skyrocket overnight. The best way to do this would be to use a tool that instantly tells you how rare the particular NFT is.
Just by looking at an NFT, it is impossible to tell whether or not it is rare and valuable. Luckily, the market has created such a solution called Rarity Tools.
As the name suggests, it is a simple tool that helps you identify the rarity of your NFT. This is identified using something known as the Rarity Score.
How Rarity Tools Works
Rarity Tools works by giving each NFT a Rarity Score. It then proceeds to give a Rarity Score for each trait of the NFT. These scores are then added up to give the overall Rarity Score of the NFT.
All the NFTs in a given collection are then ranked using the overall Rarity Score.
Anyone can use Rarity Tools to check the rarity of their NFT. Simply visit Rarity Tools and copy and paste the asset ID of the NFT on the “Project Section”.
In the example below we are looking at 0N1 Force NFT project.
Source: rarity.tools
After that, click on “Lookup” and Rarity Tools will display the Rarity Score of the NFT assets as well as all of its values and properties.
With this simple tool, you can quickly tell whether or not an NFT has value,
How Rarity Tools Calculates The Rarity Score
The basic formula used to calculate the Rarity Score is explained in this article.
Traditional rankings used by other platforms give great importance to the overall traits and properties of an NFT.
However, single traits are not considered. It means that with traditional methods, NFTs with 10 traits and one rare trait would not be deemed as rare. As such, the score would be inaccurate.
With Rarity Tools, the single trait is emphasized while also including the overall traits of the NFT. The result is a balanced Rarity Score that gives a clearer image of the rarity of an NFT.
Rarity Score Is Not Everything
While rarity can help guide your investment decisions, it is not everything. The tool is just there to help figure out if an NFT is rare or not. If it has a high score, it means there is a good chance it might be profitable in the future.
However, it does not mean that when you invest in it, you can immediately flip it for profit.
Due to the low liquidity of NFTs, if you invest in an NFT project, buyers may not be immediately available to purchase the NFT. This is unlike fungible tokens, which you can sell in a few minutes after buying.
As such, you could snag a super rare NFT but find no one is interested in it at the moment.
To improve the chances of selling an NFT, it is important to check the community behind it.
A large community ensures that the NFT is more likely to sell out in a short time. As with any investment in the crypto space, it is important that you only invest the least amount you can afford to lose.
