We have all seen the hype. “HEY EVERYONE, IT’S PROJECT WHATEVER IN IT’S ICO STAGES, WE ARE THE BEST, OPTIMUM, DECENTRALI….” and so it goes and goes while sound turns to tone and fades and newer coins launched daily with hundreds of websites operating exclusively to show you the latest. Speaking of hype, anyone noticed how XRP went to the moon, hear Elon is even taking it to Mars, xCurrent is in for a ride on the red roadster!
Let’s start with what we would need to look for, in one of the global cryptocurrency groups I am in, a member pointed out key things to look out for and here’s what he said:
1) Fundamentals:
a – When did the project start and what was the initial team size?(if you can find the information)
b – Has it forked? If so, give a history on the forks done and the differences of the forked coins. (for example transactions per second or DPoS instead of PoW)
c – Does the project really need to be on a blockchain? Why? Does it benefit the functionality?
d – What is the expected target group/size
e – How likely is the project from your perspective to achieve something successful (This could be your gut feeling)
2) Roadmap:
a – What are the next targets/releases?
b – Did they announce any details about the next release/product? (What and when?)
c – How do these releases influence the price movement/volume? (People tend to go opinion based but there is a logic behind it)
d – Is the roadmap with exact dates or just a general scope from the far future?
3) Team:
a – Who are the developers?
b – Background of the marketing team?
c – Who designs? Is it internal? (YES, some coins design through 3rd Parties)
4) Github:
a – Check the commit count
b – Check the commit content
c – What were the latest commits and are they following roadmap, architecture or pivoting?
d – How many contributors exist?
5) Whitepaper:
a – Is it professionally done and internally? (compare it to key whitepapers of BTC, NEO, ETH etc.)
b – Are you able to recite a short summary of their abstract? (If it wasn’t appealing and hooked you, why would it hook mass?)
c – What are the main selling points in detail and how do these scripts work?
6) Marketing:
a – How far are they with their product?
b – Is the product unique? (Does it carry a UVP)
c – Who are the main competitors in the same scene?
d – What makes them different?
In general, you should be able to compare the development, activity, and market cap to define potential targets and risks of the coin you decide to venture in.
The checklist is flawless, following these will make sure you drive a minimal risk venture that is well assessed. I will be providing a guide on how to look at the world’s movements and circulation of money especially fiat into crypto and how that affects alts and fluctuations. The amount of hype over certain coins undervaluing others that are true in their tech is beyond belief. The next post might go over the difference between what news does in the crypto market vs the affiliations, business deals, and actual cashflow and exactly what they affect in crypto markets and why.
Studying a chart is one thing, connecting to the bitcoin global network system is another. For more info: Click Here.
Till next time!
