How to identify a good crypto project?
With so many scams and rug pulls happening in the space, here is a guide on how to identify a GOOD crypto project from a BAD one
The Team: Find a project through apps such as CoinGecko, Coinmarketcap or even social media. The first thing you want to do is identify team members. founders, advisors, the CEO, anyone who is part of the team. If this information cannot be found anywhere, this is a red flag, and I would keep far away from this project. Once finding team members, you want to see their expertise; ie: LinkedIn, previous jobs ect. Make sure they have good track records and know what they are talking about.
Social Presence: Check their following and ensure it is not bot accounts. View their telegram and Twitter. Are they active? If they are regularly posting and have real interactions with a good community, then this is a good sign.
The Project: If the two above steps are ticked, look on the project's website and get an idea of what the project is about. Are they solving a real-world problem? has this been done before? Look at the project's whitepaper on their website and identify a USP
The use of the token/coin: What is the token used for? Is the project DAO? Do you have voting rights or are the devs in control? Who is the highest-holding wallet and why? (check on the project's native blockchain).
Current Market cap (or ICO cap), Price and Coins in circulation: A smaller cap project will have more room to grow compared to a high market cap project. For ICO's some projects acquire millions from their ICO's and are instantly valued very high. Assess the possibility of these projects to double or triple in value. Look at the team’s vesting schedules and work out the private sales vesting and how much of the LP is locked. If you find all this info you should have a good understanding of it the project is here for the long term or just to make private sale investors rich.
Trading volume: Ensure on CoinGecko that the trading volume is high enough to show demand for the project.
What exchange the coin is listed on: How many exchanges are the coin listed on? Are these big exchanges? If there is no big popular exchange, what is the reason?
Product stages: Look at the roadmap of the project; how far has the project come and what have they achieved since launch? Is there a tangible product for their investors or are they all talk? When is their next product released?
Competitors: Who are the competitors for the project? Is the space already too saturated for this project to succeed? If there are competitors is your projects product quality higher than theirs?
Legality: Finally, the last factor is legality. If a project is based in a country such as the Camen Islands or China, are cryptocurrencies allowed to be used as a means of transaction or is this illegal? Is your project meeting the requirements it needs to meet?
Use this guide as a step-by-step on how to identify a GOOD project from a BAD one