How I Am Trying To Evaluate Crypto/Blockchain Projects
Hello Fellow Steemians,
I like to communicate how I am viewing this strange new world of investing in Crypto. The reason I share my view is I am still learning, so every comment that disagrees is a part of my education. Thank you all for helping to be a part of my experience as I try to understand Crypto-World 2017. My working background is also start-up technology, but healthcare and corporate as a focus. My former Due Diligence (vetting) criteria doesn't work well in this environment.
Also, if I knew I was a running a crypto project with the eyes of a developer working with mostly other developers, I would appreciate feedback from other types of people.
Here is my list of the criteria I have started to build for myself regarding evaluating crypto projects. (I wouldn't have made it this far if not for asking a lot of annoying questions in SteemSpeak and on the Blockchain.)
List for Evaluating Crypto for investment:
- Do they have a vision or user-case?
- Do they have a funding source, such as fees or some income?
- Do they have a management strategy that is functional and working? (how do they make decisions)
- Do they have solid technology - (I do not have the skills to evaluate, but I know some people I trust)
- What is their story? What do they say about themselves on their sites, marketing, etc. Is it written by developers for developers and only understood by developers? (Crypto People are already in the space, mainstream is where you get new money, IMO)
- Besides trading do they have a user-case or vision on why that coin needed to be created. (Market Need) Nice if you can make a new coffee pot, but does the market need one?
- Do they have an active Development Team that is funded in some way.
- Do they have easy to read technical sheets or white papers? (Current?)
- Who are the active "Execs" and how did their last project go?
- Does their timeline make sense? This isn't a tiny niche anymore.
Bitcoin is likely to be the last coin able to take 9 years to make a story.
Okay, shred me up, teach me something please. What's missing and what do you think doesn't matter?
For long term investment, fundamentals are key. You've hit the nail on the head with that one. I'd also like to suggest for anyone having a hard time finding some information, try to contact the team of Slack or Telegram and you can talk to them directly. Of course, they may be biased, but it's a great way to find out answers straight from the horse's mouth.
Nods, excellent advice and completely off my radar.
Agree. Alternatively, you can take a virtual shotgun full of money and blast it at all the cryptocurrencies and see which live through it like Wolverine and which die off like that Xmen who can learn lots of languages but has no powers whatsoever.
These are all correct sir whatsup. Something I'd probably like to add is if they have slack channels or other means of communicating and updating their community regularly such as Steemit. Another is for the traders. Maybe the price chart as well as the market cap to evaluate the performance.
open and fair communication to shareholders ?
Market cap for sure. Excellent point. (Edits my real list)
I'm glad to have some contribution to your list sir! :)
I like it. Good advice
IS the coin minable or has it been pre mined ?, How much percentage of the coin, if premined, goes to the creators? And did it had an ICO ?
Those are three questions that I use when evaluating a project , I'd add these ones too :D
I completely forgot to add anything about the launch. Good reminder.
:D
meep
Agree with every point. How and where they wanna commercialize and advertise their product to the target audience ? And later onto the mainstream ?
Unfortunately it is human nature to judge and it is also human nature to follow others like sheep. These two combined= censorship.
"For long term investment, fundamentals are key" -golden words.
I Am Also still learning, and I guess the best way to learn is to take advise from people who know their stuff.. there is a lot going on on steemit and a lot of information te find, read read read and get the best info out of it, just for yourself, that is the way i do it.
This is excellent list. Add two more items. Is project live? And do they provide data for anyone to analyze like blockchain.info.
Excellent thought.
Cool list of questions to check before any investment... I am newbie and have not inverted anything yet (beside steems of course), this list will be useful :D
It is a work in progress. Keep that in mind.
Great evaluation. I would add strength of the name of the coin/blockchain. Names are very powerful, but not the most important thing.
Also, do they have have active news feed. or have they been in the news recently?