Let this guide act as a brief decision tree whenever you’re considering to buy into a new project, not financial advice.1. Consider the value proposition.What is this token bringing to the table?Is it quick to transact?Does it solve a problem?Does is improve a system?Is it a quality of life improvement?Does it have a mission statement?Is it secure?If the answer is yes to all or any of the questions above we can move down the second branch of our decision tree.2. Consider the tone of voiceIs the website talking about how it will moon?Is it trying to create too much hype?Is the hype based on little else than a mooning promise?Does it make a reference to memes?Is the tone of voice a bit TOO informal?If you answered yes to any of these questions you may stop here. This is not a project you want to invest in. Otherwise, we can continue down the 3rd branch.3. Consider its blockchainDoes it have its own blockchain?Does it make sense for it to be hosted on the ETH/BSC blockchain?Again, if either answers are yes you may continue.4. Consider its user acquisition strategyDoes it sound too much like a Ponzi scheme?Is it invitation-based?Answer yes here and you may stop looking into it any further.5. Consider its supply and blockchain architecture.Is the supply centralised?Does it make sense for the supply to be centralised given its blockchain architecture? (like XRP for example)Has it been pre-mined and if so who owns the majority of it?While this might directly disqualify a token by itself, paired with the points above it offers a pretty clear picture on where we stand. And now for the final question:6. Do you believe in their cause?If their mission doesn’t speak to you, why would you invest in it?
Submitted April 22, 2021 at 05:49PM
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