- Good day to all the members here in the forum, this time I just want to talk about the word DYOR(do your own research) that is often read here in different sections of the forum. I want to detail how we should do it right so that we can choose the right projects that will appear in the field of cryptocurrency. Because I noticed that many people don't know how to do it, they just know DYOR is just that, but the application of it, they don't really know how to start or what is the first step to take. And this is what I'm going to share today,
Things we should look at in crypto projects whether short term or long term projects.
* WEBSITE this is the first thing we will look at then we will go to the social media channels to find out the announcements, is the community active, and if we pass this primary information we will jump to the WHITEPAPER or we can also look at the REVIEWS of the projects on youtube channels or ARTICLES.
And right here in this area we can decide if we will continue the research, because this is where we can identify the common red flags in crypto projects. And if we don't like something, we don't proceed. However, if everything passes for us, we will move on to the next step and this is,
* PROJECT DESCRIPTION Since we have read the whitepaper, we have been able to find reviews about the project and it seems okay, so we will put it here like;
- Overview of the projects, How does it work?
- what is the governance structure?
- How does it create value if there is an architecture?
This is where we will know if we really understand the project.
Isn't one rule that we need to follow before we invest in anything else is that we need to understand it. And if we don't understand anything in this matter, probably, we haven't understood the project yet and we need to study it again.
* INDUSTRY OVERVIEW Here, it is important that we see the market or industry that the project operates in, such as:
- Who are those direct and indirect competitors?
- What are those metrics?
- Is the industry moving a lot?
This is what will be our measure, like for example the project we are researching is a DEX, now we will look at the category where we can use coinecko and coinmarketcap or Defillama to do this. Then, let's check the competitors who are the players who are performing.
* VALUE PROPOSITION- What is the project bringing to the ecosystem? are the decentralized exchange but its user interface is better compared to others, it can be that.
- What is the competitive advantage? something unique to the project that we can't see in others, like this decentralized exchange is the fast execution that can be compared to centralized exchanges. Reasons why people prefer to use it compared to others or why investors prefer to use it. So we should look for innovation and differentiation.
- why should we use it?
* BLOCKCHAIN- On which blockchain is it based?
- Does it have a lot of TVL?
- Large money inflows?
Because if the tvl is low it means the demand of the project is low and it is more difficult to pump compared to projects with big tvl. And the tools we can use for this are cryptoflows.info
* TEAM- Do they have crypto experience?
- Who are they?
- How many people are on the team?
- How transparent is the team overall?
- Are they anon?
For doxed what we can use there is Linkedin or crypherhunter.com blockchain analytic also but the focus of the platform is to track the crypto projects, the company behind them and the product they are building.
* ADVISERS OR PARTNERS- Who can guide them in their journey?
- Are they any strategic Partnership?
it also helps a lot in projects if they also have extensive experience in such projects. And normnally that is also indicated on their project website.
* FUNDRAISING- Did they raise funds?
- Which valuation?
- Who are the investors?
- Can they help the project grow?
It is important that a project has funds because there is no point without it. Normally projects share their fundraising activities.
* FINANCIAL METRICS here we can measure if a project has real users and adoptions.
- What are the key financial key metrics (TVL, and Trading volume.
- Is it growing?
- Are their Users?
- Is the protocol generating revenue?
- What is the adoption?
And the tools we can use here are the
https://tokenterminal.com/terminal* ROADMAP- What is the roadmap of the project? because here we can see the commitment of a project if they have a clear roadmap. Normally, projects are in the whitepaper or website itself.
- Is it realistic?
* TOKENOMICS- What is the purpose of tokens?
- What is the circulating supply?
- Is it deflationary, inflationary or fixed?
- Vesting and Cliff model?
- What is the token utility?
The tools we can use here are
https://token.unlocks.app/ we can see here some details information about how many are locked in a project or daily unlock and many others.
* PUMPAMENTALS- What is the reason for pumping a project?
- What is the narrative around it? Is it entering the narrative market today?
* COMMUNITY@MARKETING ANALYSIS- Do they have fake followers or engagement?
- Who are the influencers interacting with the projects?
- Is there a lot of activity around the project?
- Is the community strong?
If a project does not have a community, then there is no reason for us to invest in it because there is no demand. We can see on various social media channels whether it is strong or not.
* RISK- What do we see as possible risk?
- What are the weaknesses? Does the marketing seem weak?
- Isn't the community that active? the Founders and etc. are unknown.
Here we can measure how much we will put into it if we ever decide to invest. Also we should identify whether the project is short or long-term. It really depends on our strategy. So this research that you will do will strengthen you whether you will invest or not. Because DYOR is not easy but we need it, especially if the project we want has not been reviewed much, it's just a bit laborious but that's how researching crypto is, nothing is easy here.
Have a good day
