What are the red-flags that you look out for?
This is such an important concern, but obviously it isn't unique to Cryptocurrency. The business world is full of failed projects - either genuine projects that failed or scam projects that lured in naive investors. It's important to acknowledge that this isn't a crypto-only problem.
Here's what I look out for:
(1) Does the project have a realistic business plan that's bringing real value to a corner of the market that needs such value?
(2) Do the developers/owners have the background to bring the business plan to fruition, reality?
(3) What's the contingency plan if the business plan runs into tough spots...and all business endeavors run into tough spots.
(4) For crypto specifically, does the project offer a utility to people who are not already invested in crypto currency? If so, this a gold mine opportunity!