Hello. Today we will discuss the important nuances when conducting research on crypto projects.
Experienced investors usually give the following tips:
– Assess the project team’s experience and progress in the field of encryption, tokenomics, software development, auditing, system architecture, and if relevant, finance, asset allocation and management.
– Level of transparency. Any token locked and how much? Is the token distribution plan open and fair? Any partnership and how does that supplement the project?
– Stability and maturity of the team and their sponsors.
– Monitor the community and consumer acceptance over time.
– What outstanding business tasks does the company solve? Many simply imitate what the existing cryptos are already doing. Do they have an edge in that area?
Cryptocurrency is still an unconventional and relatively new tool. But even in this case, there is a traditional answer to the question of which ones to buy and who to trust: investors must decide whether these projects stick to their know-how. Then find out more about the team and organizations behind them and decide if they solve a legitimate problem. If so, can someone buy the asset at a reasonable price and formulate a clear rationale for how it is valued over the next few years?
