How to Conduct Thorough Research on a Cryptocurrency and Blockchain Project
Discover what the blockchain crypto project is up to. I agree that this is an important step to take; however, reading a white paper takes far too much time, and I don’t believe it is the appropriate first step. You may save a lot of time by following my methods below.
1. Determine if you are interested in the project.
Before devoting any effort to study, ensure that there is sufficient project interest. Go to the initiative’s website to get a sense of what the project is about and what they want to accomplish. A paragraph outlining the project’s vision will be included in the majority of projects.
2. Who is involved in the project?
It is critical not to become involved in a sham endeavor. The simplest approach to prevent this is to learn who is involved in the project. Who are the creators? Who are the creators? Who are the financiers? Who has the project formed alliances with?
When you locate the persons and parties involved, go to their Linkedin page and look at their background, skillsets, and who is supporting them, as well as what other organizations this person is participating in. Examine their Twitter profiles to see what the individual is publishing. Check that none of the accounts were established recently.
Also, do a quick Google search on each individual’s background. Before going on to the next level, be sure you have faith in the project team.
3. Prototypes, demonstrations, and a functional product?
Following that, look for products, prototypes, and demos to see if the project has anything to show. One thing to keep in mind concerning blockchain crypto initiatives is that there are numerous promise papers but few projects have real goods or prototypes. Looking for information on YouTube might be beneficial. Examine films concerning this project, particularly those on the initiative’s YouTube channel. That’s because the majority of the time on their channel, you’ll witness AMA sessions, as well as tech demonstrations or game demos, development updates, and much more. This provides information on what is being worked on as well as what items and prototypes are available if any.
4. four. white paper
Finally, we arrive at the white paper. If you’ve made it this far, it implies you’re really interested in the project. Read about the project’s goals and objectives in the white paper. Next, examine the project’s solution and attempt to understand how the project team intends to approach this. Examine the project plan, which should outline the project timeframe and how the team intends to proceed in addressing the difficulties with their solution.
5. Token Economics
This is most likely one of the most critical measures to consider. When considering tokenomics, it is critical to consider the circulating supply, the maximum supply, and how the token was divided among all stakeholders participating in the project. This is significant since it indicates how the tokens are allocated among early investors. For example, you don’t want the project team to receive 50% of the token supply. Next, discover if there was a private sale and whether there will be a public initial offering. Whether yes, find out if there is a lock timetable, a vesting schedule, or if all tokens are accessible to the public at launch. It is also vital to look at the token release schedule since this will give you a sense of the token’s inflation rate. For example, if the project releases 10% of the token during the token creation event and it is projected that the token would reach 100% of the total token supply by the end of year one, inflation will be extraordinarily significant. Not financial advice, but I usually avoid high inflation tokens.
My last thoughts
Now, if you’ve gotten this far into exploring the blockchain crypto project, I’m assuming you really enjoy it. Following these steps will give you some basic general project understanding. It is now up to you to continue learning and educating yourself. Follow the project on Twitter and join their Discord and Telegram channels from now on. When you use these sites to follow the project, you may sometimes obtain development updates or locate announcements much quicker. I wish you the best of luck on your blockchain crypto adventure.
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