Checklist Before Investing :
A project's whitepaper is a good starting point for researching a
new crypto project. Most new crypto projects have a whitepaper or official document that includes information such as the project's use case, tokenomics, team members, and roadmap
. The presence or absence of a whitepaper can tell you a lot about the project's seriousness. While reading a project's whitepaper, there are a few things to look out for:
Use case : This is the main problem that the crypto project is trying to solve, or its unique function. For example, there are several Layer 2 projects that aim to improve the low latency and transaction times of traditional blockchains without compromising security and decentralization.
Tokenomics / Token Economics : This is the basic plan for how the project's new crypto tokens will be distributed. This includes how many tokens will go to the founding team, advisors, how many will be available for sale to the community, how many will be in the treasury, and what type of token it will be (deflationary or inflationary, with a limited or unlimited supply).
Lock-up period : This is the period of time that the founding team agrees to lock up their tokens before they can access them. A longer lock-up period can give investors more confidence in the project's long-term commitment.
Founding team : It's important to check the background of the project's founding team. Are they experienced, do their backgrounds match the project, and do they have any fraudulent history with past projects? The profiles of the advisors and investors/backers of the project can also be useful.
Social virality : Decentralization is at the core of crypto, so projects are often community-driven. The growth of the project's community can be a good indicator of investor confidence. Twitter, Telegram, and Discord are popular platforms for building crypto communities.
Roadmap : The project's
roadmap contains its major plans and timeline. This can indicate the project's seriousness, especially when compared to what they have accomplished. Have they achieved any of the earlier plans on the roadmap within the specified timeline?
A project's whitepaper is a good starting point for researching a
new crypto project. Most new crypto projects have a whitepaper or official document that includes information such as the project's use case, tokenomics, team members, and roadmap
. The presence or absence of a whitepaper can tell you a lot about the project's seriousness. While reading a project's whitepaper, there are a few things to look out for:
Use case : This is the main problem that the crypto project is trying to solve, or its unique function. For example, there are several Layer 2 projects that aim to improve the low latency and transaction times of traditional blockchains without compromising security and decentralization.
Tokenomics / Token Economics : This is the basic plan for how the project's new crypto tokens will be distributed. This includes how many tokens will go to the founding team, advisors, how many will be available for sale to the community, how many will be in the treasury, and what type of token it will be (deflationary or inflationary, with a limited or unlimited supply).
Lock-up period : This is the period of time that the founding team agrees to lock up their tokens before they can access them. A longer lock-up period can give investors more confidence in the project's long-term commitment.
Founding team : It's important to check the background of the project's founding team. Are they experienced, do their backgrounds match the project, and do they have any fraudulent history with past projects? The profiles of the advisors and investors/backers of the project can also be useful.
Social virality : Decentralization is at the core of crypto, so projects are often community-driven. The growth of the project's community can be a good indicator of investor confidence. Twitter, Telegram, and Discord are popular platforms for building crypto communities.
Roadmap : The project's
roadmap contains its major plans and timeline. This can indicate the project's seriousness, especially when compared to what they have accomplished. Have they achieved any of the earlier plans on the roadmap within the specified timeline?