4 Tips to Influence Market Sentiment

As defined by google, 

“Market sentiment refers to the overall attitude of investors toward a particular security or financial market. It is the feeling or tone of a market, or its crowd psychology, as revealed through the activity and price movement of the securities traded in that market. In broad terms, rising prices indicate bullish market sentiment, while falling prices indicate bearish market sentiment.”

The Moving Averages, Bullish Percent Index and other indicators can be used to predict how the stock market will perform. However, there are far too many unknowns in the NFT scene for that to be feasible. There is a mix of new and veteran participants in the scene, which creates a significant “knowledge gap,” causing the marketplace to not readily progress in the direction that anyone desires.

4 Tips to Influence Market Sentiment

There are four ways to dictate the market sentiment:

• Hype of project
• Influencers
• A value that the project adds to the scene
• FOMO/FUD level

Now we’ll explain each of them in detail so that you have better knowledge.

1. Hype of Project

The number of followers, likes, comments, retweets, impressions, and, finally, the number of influencers supporting the project could all influence the project’s hype.

When a business has over 50k Twitter followers and 60k Discord followers, it’s a positive sign. However, due to the current bad market, some projects with over 100k Twitter followers are not even buying out.

On the other hand, several projects with only 20,000 followers are selling out. Bots and phony followers would be the explanation for this. To sell out a project with a 10k maximum supply, just 5k unique holders are required; nevertheless, for the project to increase in value, paper hands and those who are not hopeful about the project’s future must be screened out.

Look out for their audience engagement, such as the number of likes, retweets, and comments. For a giveaway tweet, a safe rule of thumb is to have at least 1k followers.

In terms of Discord engagements, see whether there are messages from a variety of different people and if the mods are participating with the users through gaming or chatting.

In terms of freebie tweets, see what kind of project they’re willing to work on. It would be a positive sign if they were able to cooperate on projects that are in high demand, such as Imaginary Ones. Another positive sign would be if they were able to interact with established blue chips such as Nanopass and Godjira, indicating that they had passed the initial hurdle.

1. Influencers

There are four different categories of actors in this group: important opinion leaders, advisors, project analysts, and whales. There will be some crossover between the different categories of actors.

The following are some examples of overlaps:

• Before being a prominent thought leader, one was a whale (The society follows those who are wealthy and have the influence to pump their purses)
• One is just a project analyst who will make calls from time – to – time and then become a key opinion leader if they are correct more than 50% of the time since people are too lazy to do their study and would just follow blindly.
• One is a prominent opinion leader who is well-versed in the NFT scene and is then hired as a project advisor. Certain advisers help to raise market awareness of the project they are consulting on.

 

• Key opinion leader

 

They are usually the ones with the largest number of followers and the most clout in projects. One of their tweets might completely transform the project.

Gary Vaynerchuk is one such guy, and we don’t intend to disparage him, but there have been moments when he has sent out a tweet that has practically doubled or tripled the number of followers. The floor will rise exponentially as the demand for the collection increases. Don’t fall victim to FOMO if you’re already late to the party.

Koala Intelligence Agency, Cryptoskulls,  and others are examples of such collections.

 

• Advisors

 

Some advisors, such as Shan and Takoa, will just add to the project’s general trustworthiness. Many members of the community follow Shan around everywhere he goes and only invests in projects that he suggests.

Advisors are individuals who have spent enough time in the industry to understand how the market works and what makes a strong idea. They don’t have to promote it on Twitter; all they have to do is join the Discord and be assigned an advisor role, which will help to calm some of the users down.

 

• Project Analyst

 

Dreamland Genesis and Dinobabies, for example, have their in-house project analysts. They would offer plays and projects that they believe in, and those that are in the discord of the proposed projects will raid the servers of the proposed projects. However, because not every member of the disagreement trusts the analysts, this would only bring in about 100-200 members on a micro-level. This is fairly amazing because you’ll be able to get the OG role. After all, it’ll be the first wave before the buzz arrives.

 

• Whales

 

What else is there to say about whales? The whales are a completely unpredictable factor that cannot be controlled. There’ll be some known whales in the scene, as well as some nameless whales that would simply buy in bulk to a project because they sense its potential.

 

1. A value that the project adds to the scene

 

There are numerous things a project can do to improve the overall scene. A few of the examples below will assist in better explaining the situation.

• Projects, like Azuki’s ERC-721A, have the potential to change the entire smart contract scene in the NFT. It has aided investors in the scene, such as myself, in minting projects at a lower cost by reducing overall gas fees spent.
• Projects could alternatively use the snapshot strategy, in which they open their discord for a limited time and then close it when the maximum number of members is reached. Tasty Bones and 3dFrankenPunks, as well as the popular Nanoverse’s new Phantom collection, were among the more popular sets that did this.

 

1. FOMO/FUD level

 

The level of FOMO/FUD is another factor that influences market mood. It’s a typical marketing approach to use the FOMO factor to tease the audience and get them eager for the project’s launch. If FOMO is well implemented, the NFT space will explode, and the project will get a massive following.

When the project receives a lot of attention, however, all of the founders’ earlier wrongdoings will be dug up and publicly speculated, causing a tsunami of FUD to the project.

A project can be FUDDED in a variety of ways:

• When the mods aren’t paid on time or the incentive isn’t appealing enough, they can FUD the project.
• If they weren’t whitelisted after putting in a lot of effort, the members may FUD it.
• Misogyny, racist, and even homophobic statements were found to have been made by the founders.

What makes a project successful is if there is maximal FOMO for the initiative but FUD is kept to a minimum. FUDS, on the other hand, would be present in every project. What would truly “kill” them is if someone conducted research and discovered that the project’s leaders were either slow rugging their other projects or underpaying artists.

Conclusion

Numerous aspects influence the success or failure of some initiatives, and we must conduct our study in conjunction with the criteria outlined above. This will make it easier for us to direct the course of events.