Source : Google
1. INVEST YOUR TIME FIRST TO UNDERSTAND THE PROJECT
Ask yourself:
🔸What issues does the project solve?
🔸Is it viable in the long run?
🔸What value will it hold?
🔸How scalable is the solution? etc.
2. ROADMAP OF THE PROJECT
🔸Has it delivered as per/before timelines?
🔸What are the plans for the upcoming quarter(s)?
🔸What is the overall experience of the team managing the project?
🔸How is the developer ecosystem of the project?
3. FINANCIAL VIABILITY OF THE PROJECT
🔸Is the project bootstrapped?
🔸Does the project have enough financial liquidity to survive the bear market (which may extend to months/years)?
🔸Is the team doubling down & working on solutions during bear market?
4. REVENUE MODEL
🔸Can the project generate a positive cash flow by providing actual value to all the participants/stakeholders?
🔸How strong is the utility of the project in the long run?
🔸Tokenomics – % distribution of tokens, unlock schedule etc.
5. CATEGORY OF WEB3 PROJECT
🔸Web3 solutions come in all shapes & sizes. Some find solutions to a problem faced by #NFT community, while others solve for #DeFi etc.
🔸What is the competitive advantage of the project with others in the space?
🔸How strong is the community?
6. RISK MANAGEMENT
🔸How well is the project prepared for times of (possible) crises?
🔸What is their contingency plans in terms of adversity?
🔸How transparent is the project (and its members) in their approach about activities on a periodic basis?
7. DUE DILIGENCE
Once you identify a project & are confident that what its intending to solve is something unique and will benefit #web3 ecosystem – you may wish to have a very minor part of it in your #crypto portfolio.
Watch the full episode which covers all the points above in depth here: https://youtu.be/p-orQFI92k4
⚠️ DISCLAIMER ⚠️
The above blog is for information & educational purposes only and is not to be construed as any sort of investment advice.
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