A good project is not necessarily a project that makes quick money. How many of those thousand-fold or ten-thousand-fold coins are good projects? They are all set up by the dealers behind the scenes. We are the pawns in the middle. Only a very few people are lucky enough to get a piece of meat, and the rest are just the boys who bring wealth.
Therefore, it is important to distinguish between good projects and profitable projects.
We basically have no chance to invest in good projects known in the market. We can only invest in spot goods to earn a bull-bear price difference, which is the most stable way to make money.
But among people in the cryptocurrency circle, how many can wait patiently to make money slowly? Most people enter the circle just for a wave of financial freedom.
So they will frantically look for some new projects, trying to find a project with more than 100 times the profit. Although the possibility is not great, here are some criteria for judging whether a project is good or bad (for reference only, not to say that all the criteria are good):
First, does the project have a clear vision and goals?
This does seem a bit empty, but it is very important. How good can a project without a vision or goal, whose white paper is copied from others, be? Most likely it is just to make money.
Second, the strength of the project team.
This is very critical. A strong project team is the key to the success of the project. Whether they have technical experience in related industries, what resources they have, etc., these must be verified and investigated through various channels. Twitter and LinkedIn are good ways to verify.
Third, what problem was solved.
An excellent project often solves a problem in the real world and brings value to the world. If the project cannot even answer this question, then it is not a good project. For example, shib, pepe, and dogecoin are all garbage. Although they have increased a lot, what problems have they solved? What value do they have other than hype?
Fourth, technology implementation and development progress.
Check out the project's technical documentation and development progress. An active GitHub repository may be a good sign that the team is actively developing it.
Fifth, a strong and active community
This is also very important. A strong and active community is the key to a project's marketing and promotion. After all, even good wine needs to be hidden in a bush. Even if you are awesome, no one knows about it. Without early investors, a good project is likely to die.
In the cryptocurrency world, a community can often support the entire market value of a project. After all, market value is a very imaginary thing.
Sixth, economic models and tokenomics.
This is also very important. I remember that in the last bull market there was a project called bzz which was said to be comparable to fil. It looked good, but its economic model design can be said to have ruined this project.
The amount of early capital investment must be locked and cannot be distributed in full after the project goes online. This is because these early investors often make hundreds of times the profit when the project goes online, relative to the secondary market price. If all the coins are given to them, they will only do one thing, which is to sell the coins and cash out.
The huge amount of chips may directly drain the working capital of the project, leading to a tragic story of mutual trampling. The project may fall directly to its feet or even return to zero.
The project's economic model should be sustainable and able to create value for coin holders and other stakeholders.
7. Transparency and Communication
The team should communicate with the community regularly to provide updates and feedback. If you don’t know what the project team is working on for a long time, and they don’t regularly report the project progress to investors, then leave the project as soon as possible.
Eighth, regulatory considerations
Understand the legal and regulatory status of the project in its region or other key markets. If it is a domestic project, it may not be worth investing in, no matter how awesome it is, because there is no soil in China to incubate high-quality projects.