What da hack is crypto and blockchain project investment analysis? (Part 1 of 2)

Hello, cryptoworld!

It has been 20 days since my last post and 9 days since the moment I planned to have my investment analysis approach ready and publish it on my Steemit blog. While I was digging into the topic I started to understand much more clear how complex investment analysis is crucial and decided to spend more time on it. And the summer sun, laziness, tanned girls on the streets and warm nights are not another reason for the delay. So, in this post I want to tell about new economy possibilities already open to everybody and reveal my investment analysis approach and how I'm going to analyze selected projects I mentioned in the previous post. Let's do it. 

Welcome to the new economy epoch

Do you know the first welfare theorem?! 

 "An equilibrium achieved by a competitive market will be Pareto efficient"
The source is here.

Too complicated for a person who has no Ph.D. in economics. In simple words, it states that market is a self-balancing system, which does not need any mediator to sustain the system or be regulated.

New technologies like blockchain and advanced cryptography are bringing us closer and closer to the new times when humans as parties of a society act in a very different way than now. One of the crypto anarchists’ concern is to build and participate in counter economics, which includes development of viable alternatives to banking systems, and development of alternative financial systems which provide the user with options for greater privacy or anonymity. 

Besides sending money worldwide in seconds with a cost of a penny or trade goods anonymously, cryptotechnologies opened doors for new traders and investors. In 50-s when the market of securities and exchanges started to develop, it was too complicated to invest for an average person. You had to get a $100.000 license or hire such a broker, today's many hedge and venture funds allow investors only with $25.000 bank statement as an entry ticket. 

With cryptotechnologies you can start investing with 10 bucks and as easy as a registration on a website.  I clearly see how in one-two years a 16-year old guy, who is interested in computer games, can invest his lunch money into a development of a game he is admiring to play. 

Recent SEC report regarding ICO and token distribution regulation will bring changes into the market. To my mind, this is a good sign for the cryptoworld. SEC acts in order to protect US citizens and economy from financial risks, which can not be counted as a bad thing, but their decisions and authority can not affect the whole cryptoworld. Yes, it needs trusted parties or organization who can filter scam and bring a certain standardization for ICO procedures, but not restriction and limitation. In the light of this events, I consider that such a filter can be presented by some governmental or private institutions. Regardless this, the most important question which remains is what projects have a good investment potential. 

What to invest?

The recent wave of ICOs, initial coin offering, a new type of crowdfunding, has already attracted more than 1 billion into cryptomarket. As the result, we have a market capitalization over $130 mln, 840 cryptocurrencies and 195 cryptoassests accordingly to Coinmarketcap. 

One of the back sides is that many projects are overestimated, and invisible hand of the market may be crashing those projects very soon. Another back side is that many of ICOs are scams that have no investment potential and attract attention and money only by aggressive marketing and Ponzi schemes.  The third back side is to make a good investment decision, it requires a professional complex analysis approach which can verify the announced technology or market problem and make sure that the team is liable to deliver the solution in a reasonable time and sustain it further.  

And here is I'm coming with my "What Da Hack?!" show and the Capital List fund. 

Existing approaches

Since we have a chance to invest our money, we need to select right and reliable projects. How can we check and decide what project is worth investing or worth keeping a way? The latest events with BCC (Bitcoin Cash), a new crypto currency, which tried to get attention and volatility on the eve of Bitcoin soft fork and speculate on Bitcoin brand, is another proof that crypto market is financially dangerous and hides many risks for a newbie investor. 

I spent a few days and nights on researching for any decent approach to invest analyze crpytoassets, eventually, I failed. Though I was lucky to find a dozen of youtube channels and a ten of articles covering the topic, I still yet remained unsatisfied with the analysis scheme they applied. Some authors try to implement tactics from classic assets fundamental analysis both to cryptocurrencies and on-blockchain projects, the others consider the crypto projects as a new type of asset, but still not offering any new paradigm for analysis, the third group made just an overlook of the technology or the market problem, which can be considered as a project review, but not investment analysis.

My deep web surfing led me to discover some newly established funds investing in cryptoprojects. Most of them do not reveal their analysis approach, which is clear as this can be a unique competitive advantage. The rest, keeping their approaches public, did not make me feel confident about their investment strategy.  This made me upset that there is nothing to compare yet in the market and there will be much more work for me to create a decent analysis plan. At the same time, I was happy as I will be the first to present an advanced thus more professional thus more accurate analysis plan of new market assets. 

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