What are the main points to observe when analyzing a project in the crypto universe
Usually crypto projects are born to solve some issues. From a need of a certain group new projects are developed that aim to solve problems of an ecosystem.
For token/coin adherence to exist, some gaps must be filled. Everyday we are searching for important metrics that can agregate value on the projects. In this post we will show you the main topics that must be observed for a better project analysis.
The usefulness of the token is of paramount importance in the question of its appreciation, we are always keeping an eye on the solutions proposed by projects and how they will attract demand for their tokens.
One example that is very useful is the Ethereum network currency, Ether. For all transactions that users perform on the network, whether dApps or even in games, everyone must pay in Ether and this brings a lot of utility to the currency.
On the opposite side, we have Cake which is the token of the DEX Pancake Swap. It is one of the leading decentralized brokerages, CAKE was created aiming to be a reward token for liquidity providers and for governance of the platform. Therefore, the ultimate utility of the token is to be converted into some other currency, which could be a stablecoin, for example.
The greatest utility in reality has to do with governance, which in this case does not capture value for the token, perhaps this may change in the future, but currently it remains an example of little utility.
2- Token Economics
We have already talk about this feature in other post, if you missed you can check in our main page. But this is the most valuable information when we are doing an analysis.
A preliminary analysis can show us how many tokens are in circulation, how many tokens will be issued in total, if it has a deflation or inflation policy, in which network this token was developed and if it is a dApp, it is interesting to know the financial revenue.
The economics of the token is the main variable that can determine the longevity of the project and if it is a good investment from the investor’s point of view, a well-structured token economics says a lot about the project.
Several pieces of information are relevant at this stage, for example:
What is the fundraising value of the early stages? How many tokens will be issued? How much will the team and the advisors receive? What is the distribution value of the tokens for each round of investments?
After mapping this information, we can define whether, from the investor’s point of view, it is a good or a bad deal. When we get to this point we need to be meticulous with the details to define whether we will invest or not.
The team involved in each project counts a lot so that investors have an appreciation for everything that will be developed within the ecosystem. A team with relevant experiences in both the traditional market and the crypto universe are taken into account, we understand that the chances of the project being delivered as planned increase a lot when we come across relevant teams.
This is the main item that all projects show their ideas, technology, problems and solutions inherent to the project. Within this document we find all the information related to the project, the care that the team takes in elaborating all the details counts as well. The ideal is that all information is present in this document, the higher the level of information the more confidence and transparency we can have.
This item is related to the delivery schedule that the whole project intends to follow, it is of utmost importance that what was planned be executed in the predetermined periods. If there is a delay on the part of the developers, it is necessary to understand what happened, if it was a one-time thing or if it could somehow influence the progress of the project.
It is extremely important that there is transparency and that all steps are described in the roadmap, a project that delivers the demands according to the pre-established schedule can be highlighted in the market, projects that fail to deliver or even that are late, can trigger lack of interest from investors and end up bringing pressure to sell the token/currency.
An interesting point to note is if the project has an engaged community on social networks (Telegram, Twitter, Discord, Medium and Linkedin) this helps to improve the visibility of the project and bring in more investors. It ends up being a low-cost marketing strategy, in the crypto universe communities are well-liked by investors.
That is all for now! Stay Tuned and turn on the notifications!
Uniera has investing in game changing business models in the blockchain sector Uniera is dedicated to supporting early stage (pre-seed, seed and private) projects across the Web 3.0 space, including DeFi, Metaverse/GameFi, DAOs, and infrastructure layers. Through our investment vehicle in Cayman Islands, we manage proprietary and qualified investor`s funds into some of the most promising opportunities in crypto market.
Founded in March 2021, Uniera is a crypto exchange and manager dedicated to the portfolio of professional investors and family offices. Conceived by partners Caio Villa and Gustavo Albanesi, the company seeks to become the the main access route for investors to the best projects in the digital assets market. With tokens audited by Grant Thornton, one of the largest and most respected in the segment, Uniera seeks to raise the level of reliability in cryptocurrency trading in the country.
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