As we approach an impending alt season, investors and traders alike are scouring coinmarketcap and crypto Twitter for what could be the next potential 5x or 10x. Although technical analysis is a huge component of the price action of a project, fundamental analysis also plays an integral role in giving that much needed push in the right direction.
If you follow a lot of crypto traders across the various social media platforms that are at our disposal you will know that many of them will just be trading the chart. From personal experience I’ve seen many traders who will openly admit that they have no idea what a project is or what the coin does but the chart looks ripe for a move up and so they play what’s in front of them.
Another common occurrence is to see projects releasing positive news at key moments on a chart or when a shift in sentiment seems to be happening and the market is turning bullish. This tactical timing is commonplace in crypto and can help encourage a new phase of bullish price action so don’t be surprised if this begins to happen in the coming months.
Either way fundamental analysis will be a huge catalyst in the coming bull run (remember Enjin 4x on the Samsung news?) and the technological progress we have witnessed over the last year has dwarfed that of previous years.
So where do you start? What exactly are you looking for?
Below are some key points you will need to factor in to your decision making when picking a project to invest in:
Communication is key to a successful project. I cannot emphasise this point enough. The team should constantly keep the community up to date with news, updates and advancements as well as addressing FUD and any questions that may arise.
Community managers are more commonplace these days and a good project will have an active Telegram/Discord where any questions can be answered relatively quickly or at least guided in the right direction.
A good team will be proactive with their approach to communication and look to provide information ahead of time and cover all the bases before potential issues occur.
Honesty and Transparency
We’re looking for projects that are honest and transparent. They let you know why certain decisions are being made. They are open source and their github is available for all to see. They are honest and understanding about the community members’ potential concerns. The team wallets and rich lists are all available for all to see to be monitored. With these elements covered you can feel safe in the knowledge that nothing is being hidden or concealed behind the scenes.
Bot activity. If there’s one thing that really aggravates me in this space it’s bot activity on a project’s social media. This is usually easy to find. If you see a relatively new project that has 5k+ followers and each post they have has no comments but usually an even ratio of around 150 likes to 200 retweets then this is bot activity.
There is nothing more disingenuous to me then your first experience of a project to see that they are already lying to you and misleading you. How can you trust a project where their entire image and most people’s first impression of them is completely fabricated?
Are the team members who they say they are? Make sure that information on the team is easily available – most projects these days will list the LinkedIn profiles of their team on their site. Although it’s not always easy to find the information you need, if the project is open to providing the necessary information that you require then it shows sincere intent on their behalf.
Well Rounded Team
There are many projects in crypto with fantastic, borderline revolutionary, tech that has unimaginable potential when it comes to mass adoption and shaping the future of the industry. However whilst this is all well and good what happens if no one knows about it?
We see all too often a core team of talented devs, that to no fault of their own, have no real business or marketing experience. They believe the tech will speak for itself and that the product is key. In my opinion this just isn’t the case and these projects are destined to fail.
Marketing and advertising are extremely important in a space where image and message is key. Partnerships and beneficial relationships come from being able to package up and sell your project in a meaningful way, emphasising all of the benefits that your tech stack can provide and why you should be chosen over your competitors.
So look out for a well rounded team. You want to see experience in all of the right areas. What was the previous experience of these team members? What experience does the project’s advisors have? Who are the founders? Who’s heading up the marketing department? Do they have a good legal team?
It’s not 2017 anymore. We are currently in a time where it’s not uncommon for huge partnerships with enterprises to form. Make sure the team is equipped for this and has the right experience to match the ambition.
Question Print Out
Below are some key questions to keep in mind when exploring the various aspects of a project. Print these off if necessary and try to address as many as you can.
Are the team active on social media?
Do they share regular updates?
Do they run Q + A’s?
How easy is it to get in contact with a member of the team?
Do they have a mailing list?
Do they send out newsletters?
Is the contact information available on their site?
Do they actively request feedback?
Do the community managers respond to all the questions asked on Telegram/Discord?
Do they quickly and adequately address FUD?
How exactly are the Premine or ICO funds being allocated?
What’s the lock up period for tokens to be released to team members?
Are the Premine addresses publicly available in the blockchain explorer?
Do the team communicate if they are behind on their roadmap or won’t hit a goal on time? Do they announce if their chain has been attacked?
Do they share information with the community as soon as they receive it?
Are the team who they say they are?
Can you easily find the information you need about them?
What experience do they have?
How does this experience match up to the project’s competitors?
Have they covered every important role? Finance, legal, marketing etc..?
Who are the advisors and have they advised any other projects?
If so were they successful?
How often is the GitHub updated?
Does the wallet have any bugs?
Are the goals on the roadmap being achieved and regularly updated?
Are any products they might release easy to use and functional?
How was the transition from testnet to mainnet?
Were you fully informed of the process and with enough time beforehand?
How often is the wallet being suspended on an exchange for maintenance?
How often is the website updated?
How quickly can you get an answer from a member of the team?
Are there easy to use guides available for the setup of masternodes for example?
Is technical support readily available?
Do they have YouTube walkthroughs?
Do they show thanks and appreciation to the community?
Do they participate in airdrops or other bounties for current holders?
Do they run giveaways or competitions for holders to win more coins?
Thank you for reading
The Daily Chain – Inform. Educate. Succeed.