Sep 27, 2021
How to #dyor a crypto project
I’m building a crypto fundamental analysis app. Here are some factors to review a crypto project
Team vs its competitors:
- Team and employee
- Patents and unique ideas
- Does it have a foundation organization?
- Backers, Investors, Partnership
- Legal?
Tokenomics and initial distribution
If founders hold less than 5%, they won’t have enough motivation for a long term (over 5 years) to build a successful chain/coin or token
Image from @MessariCrypto
Use-case
Just ask yourself this simple question. Is this crypto project solving a major problem?
Decentralized score
Use this diagram from VitalikButerin to evaluate how honest a project is.
If it has over 50k TPS, let look at other 2 factors: Secure and Decentralized. Maybe the project owner is lying if he says it is truly decentralized chainMan shrugging
Social Score
Check the quantity and quality of its brand on
- Twitter, Tele, Discord, Reddit
- Youtube Video
- Podcast, Clubhouse Does the team actively share what they are doing in an understandable way?
On-chain metrics
- Transaction count
- Transaction value
- Active addresses
- Fee paid
- Hash rate and the amount staked/locked glassnode, coinmarketcap, and http://dapp.com are the top apps for on-chain analysis
Continuous Development
Check project’s Whitepaper, Road map. Check how the team handles crises. Do they blame other factors/people or do they focus on solving the difficulty? Do they care about investors’ money? What did they announce when they miss a deadline?
