Proper Due Diligence (for INVESTORS)

[OlegGichan_05]

Morning, businessmen! Share your valuable experience in conducting proper due diligence of new and existing projects (what to look for in White Paper, about its team, etc.).

Thanks.

[1714778719]

1714778719

[1714778719]

1714778719

[nunchuck master]

Well you need to be cautious even about small details when it comes to your money. Sometimes its enough take a look at the webpage of a project, how much was spent on design to tell right away if it is a scam. Others are more elaborated, then it needs time to check the facts, ask right questions, watch for scammers to uncover themselves.
In white paper I usually look at the market of the project, its scale and turnover, business model, how profit will be generated. The more specific facts they provide the better. The team, past experience is necessary, otherwise my participation is unlikely.

[oreits11]

the beginning on phase as extending the early inauguration as offering public reference with the deliverance of service on terms as the initial public offering with the campaign of attendance
as future investors to gains with the deeper on knowledge as the information to improves of personal decision as
defining of following action to spare of parts with the release of disposition as authorizing possession of resource
to collects with benefit as becoming stakes of directional arrange with the manage of the future nature on scenes with the business.

[savon2k]

Morning, businessmen! Share your valuable experience in conducting proper due diligence of new and existing projects (what to look for in White Paper, about its team, etc.).

Thanks.

It look like that using common financial sense is crypto is wrong and it just requires expirince and a record of trial and error. Looks for projects with active non anonymous teams ,that already have something to show for ,best ones are already working businesses that just do an ico. But in crypto sometimes you can make a fast buck gambling on a scammy ico ,but with some knowledge still being A profitable investment.
And don't invest in something that being shilled to much

[jk_14]

There is no such thing as a pre-defined due diligence process, if there was scammers would be able to use it to their advantage and it would become fruitless. Then a new process would have to be created, which scammers would be able to abuse again, thus creating an infinite feedback loop.

Regardless, there are things that you can watch for.
- Does a product already exist?
- How does the product compare to similar services or products?
- What are the advantages and disadvantages?
- How realistic is it that the product can be created and how much funds are needed?
- What is the potential market reach of the product?
- What revenue streams does the product create?
- How are funds going to be used?

There are other points, which I am not going to list because I don't want to make the lives of scammers easier. But if you imagined that you were a scammer and went from there, you will eventually get better at spotting scams. This will make your due diligence process far more productive in the long run. Keep in mind that you can never finish learning and always look for new questions to ask.
The more questions you ask and answer, the more successful you will get at spotting opportunities. It also helps to be well read in a lot of fields to properly understand business proposals and their potential opportunities or risks.