#100x gains come from investing when the market is down.
But what if you pick the wrong projects?
I’ve done the research for you!
Here’s a step-by-step guide on how to evaluate #crypto projects 🧵 (Plus examples)
But what if you pick the wrong projects?
I’ve done the research for you!
Here’s a step-by-step guide on how to evaluate #crypto projects 🧵 (Plus examples)
In this thread I’ll be showing you:
1️⃣ 10 Key criteria to consider
2️⃣ Examples of good projects in those criteria
3️⃣ Full evaluation strategy
Let’s get stuck in!
1️⃣ 10 Key criteria to consider
2️⃣ Examples of good projects in those criteria
3️⃣ Full evaluation strategy
Let’s get stuck in!
1️⃣ Market Need and Use Case
Determine if the project addresses a genuine need in the market.
Projects that solve real problems or offer unique use cases tend to have stronger long-term potential.
Determine if the project addresses a genuine need in the market.
Projects that solve real problems or offer unique use cases tend to have stronger long-term potential.
Example:
1. $AAVE
A platform for users to lend their cryptocurrencies and earn interest, as well as borrow assets without intermediaries.
2. $LINK
Provides real-world data to smart contracts meeting the need for reliable external info within blockchain applications.
1. $AAVE
A platform for users to lend their cryptocurrencies and earn interest, as well as borrow assets without intermediaries.
2. $LINK
Provides real-world data to smart contracts meeting the need for reliable external info within blockchain applications.
2️⃣ Tokenomics
Analyze the project's tokenomics, including token supply, distribution, and utility within the ecosystem.
Does it grant access to certain features, services, or benefits ?
Does the project have real-world use cases that could drive adoption of the token?
Analyze the project's tokenomics, including token supply, distribution, and utility within the ecosystem.
Does it grant access to certain features, services, or benefits ?
Does the project have real-world use cases that could drive adoption of the token?
Example:
$BNB
- Used to pay for trading fees on the exchange.
- Gives holders discounts on those fees.
- $BNB is also used to power the Binance Smart Chain.
It's designed to be deflationary.
Fees from the Binance are used to buy back and burn BNB tokens (reducing supply).
$BNB
- Used to pay for trading fees on the exchange.
- Gives holders discounts on those fees.
- $BNB is also used to power the Binance Smart Chain.
It's designed to be deflationary.
Fees from the Binance are used to buy back and burn BNB tokens (reducing supply).
Signs of well-designed tokenomics:
- Utility in the ecosystem
- Inflationary resistant
- Fairly distributed
- It has liquidity
- It has incentives for use
- It has exclusive benefits in its ecosystem (voting etc)
- Utility in the ecosystem
- Inflationary resistant
- Fairly distributed
- It has liquidity
- It has incentives for use
- It has exclusive benefits in its ecosystem (voting etc)
3️⃣ Whitepaper and Roadmap
Read the project's whitepaper to understand its goals, technology, and use cases.
A clear and well-thought-out roadmap should detail the project's development stages and milestones.
A well-structured roadmap demonstrates a clear plan for development.
Read the project's whitepaper to understand its goals, technology, and use cases.
A clear and well-thought-out roadmap should detail the project's development stages and milestones.
A well-structured roadmap demonstrates a clear plan for development.
4️⃣ Team and Leadership
Evaluate the expertise, experience, and credibility of the project's team members and founders.
A strong team with a track record of relevant success is crucial to a project's success.
#LUNA 's Do Kwon was behind earlier failed stablecoin - Basis Cash.
Evaluate the expertise, experience, and credibility of the project's team members and founders.
A strong team with a track record of relevant success is crucial to a project's success.
#LUNA 's Do Kwon was behind earlier failed stablecoin - Basis Cash.
Examples
$DOT
Created by Dr. Gavin Wood, co-founder of Ethereum (as you would imagine, he’s highly capable).
Peter Czaban (Founder)- obtained his Engineering Masters degree at the University of Oxford.
They have a very experienced team which was crucial for their success.
$DOT
Created by Dr. Gavin Wood, co-founder of Ethereum (as you would imagine, he’s highly capable).
Peter Czaban (Founder)- obtained his Engineering Masters degree at the University of Oxford.
They have a very experienced team which was crucial for their success.
5️⃣ Community and Adoption
A strong and engaged community is often a positive sign.
Look for projects with active social media channels and partnerships that indicate growing adoption.
Example:
$SOL
$TRIAS
$KAS
$AZERO
These projects have very strong and active communities.
A strong and engaged community is often a positive sign.
Look for projects with active social media channels and partnerships that indicate growing adoption.
Example:
$SOL
$TRIAS
$KAS
$AZERO
These projects have very strong and active communities.
6️⃣ Partnerships and Collaborations
Check for partnerships with reputable companies, organizations, or institutions.
These collaborations can enhance the project's credibility and potential for adoption.
Bigger partnerships could mean more funding and more credibility.
Check for partnerships with reputable companies, organizations, or institutions.
These collaborations can enhance the project's credibility and potential for adoption.
Bigger partnerships could mean more funding and more credibility.
Example:
VeChain $VET - Supply chain management solutions.
Partnerships:
BMW: DApp called VerifyCar for BMW cars to record vehicle information onto the VeChainThor blockchain.
Bayer China: created CSecure, a clinical trial platform to be used in Bayer’s R & D.
VeChain $VET - Supply chain management solutions.
Partnerships:
BMW: DApp called VerifyCar for BMW cars to record vehicle information onto the VeChainThor blockchain.
Bayer China: created CSecure, a clinical trial platform to be used in Bayer’s R & D.
7️⃣ Funding
The more funds a company has raised (given they have a good team), often leads to faster growth and development.
Example:
$NEAR
Near protocol raised $350M in 2022 funding round led by hedge fund Tiger Global.
The more funds a company has raised (given they have a good team), often leads to faster growth and development.
Example:
$NEAR
Near protocol raised $350M in 2022 funding round led by hedge fund Tiger Global.
Honourable mentions
8️⃣ Competitive: What’s their edge over competitors in the same space?
9️⃣ Market Trends: Is the project part of hot narrative ? (AI or Play to earn in 2021)
🔟 Token Performance: How large is their Marketcap and how much room is there for growth?
8️⃣ Competitive: What’s their edge over competitors in the same space?
9️⃣ Market Trends: Is the project part of hot narrative ? (AI or Play to earn in 2021)
🔟 Token Performance: How large is their Marketcap and how much room is there for growth?
These are numbered in order of importance.
In order for a token to be top quality, it needs to excel is at least 70% of these criteria.
Having a strong advantage in only 1 or 2 won’t be enough.
We need to find winners!
In order for a token to be top quality, it needs to excel is at least 70% of these criteria.
Having a strong advantage in only 1 or 2 won’t be enough.
We need to find winners!
You may give a maximum of 10 points for each of the factors listed above.
So max score for the 10 factors is 100.
Evaluate a handful of your favourite #cryptos and select the ones with the highest total scores and DCA into them.
So max score for the 10 factors is 100.
Evaluate a handful of your favourite #cryptos and select the ones with the highest total scores and DCA into them.
Everything in this thread is my personal view and is not financial advice.
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Thats it for now.
I hope this brought value to you. If you gained from it please :
Like, RT & follow for more 🙏🏽.
I hope this brought value to you. If you gained from it please :
Like, RT & follow for more 🙏🏽.
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