Read on TwitterLike in 2017 the “ICO” market is hotting up. Many will give great returns but eventually disappear or flatline during the bear market.
Here’s a few tips on doing some due diligence and exiting
In 2021 bull market most of the best projects are getting snapped up by large VCs and KOLs Key Opinion Leaders (influencers).
This leaves entry via IDO public sale or entry into poorer quality projects for the rest. This is where those new or inexperienced can make mistakes.
This leaves entry via IDO public sale or entry into poorer quality projects for the rest. This is where those new or inexperienced can make mistakes.
I mention the VCs and KOLs getting in early not because I’m so much against them, but this means they behave as smart money usually investing in projects that do well. So if you’re entering a project without strong backers you may need to do further due diligence to avoid scams.
Market sentiment. Keep this in your mind. Right now everything is pumping, but when they don’t you need to be even more vigilant. The market can reverse very quickly and you’ll be left bag holding as your project delays releasing tokens for “better market conditions”.
Public sale auctions - usually not a good idea. They say it’s “fair price discovery” but the price is bidded extortionately high. Less scrutable projects may even influence the price via lack of transparency. Just DONT do it. It’s certain death in bear market.
Pub Sales auctions continued.... Do due diligence, there are specialist bots like the one made by @x0_Ben
See attached screenshot for Boson auction. Ppl using the bot eventually decided buying on exchange was safer and better Risk/Reward. A win for the little guy
See attached screenshot for Boson auction. Ppl using the bot eventually decided buying on exchange was safer and better Risk/Reward. A win for the little guy
Project Type / Problem space. They say you are what you eat. The same can be said for investing, you’re an idiot for investing in something that doesn’t need blockchain or a token. Most ppl in this space haven’t CS or tech business backgrounds, they’ll believe hype too easily
Token metrics
A project should raise sensibly according to problem space
Are they being greedy? Is the size of round and vesting right for early investors, team and public sale?
Do they disclose FnF (friends n family) round?
This is a big topic and would need its own thread!
A project should raise sensibly according to problem space
Are they being greedy? Is the size of round and vesting right for early investors, team and public sale?
Do they disclose FnF (friends n family) round?
This is a big topic and would need its own thread!
Team. Is it anon? How much of the team is “real”? Do they have past experience related to the space? Can you find people who they’ve worked with previously? Many come out the blue and don’t have these connections so beware
What has been built? Working Prototype? Code on GitHub? Or are you investing merely on the website and hype? Remember telegram and Twitter can be manipulated with fake followers.. or just noobs who don’t know what they’re doing.
Talking about code, will it be open source, will there be a foundation? Have they plans for building developer community? How decentralised is it really? Therefore ask yourself why exactly are they in this space “gatekeeping”?
The answer to that will tell you a lot.
The answer to that will tell you a lot.
Hype.. Demand for a project on exchanges is important. But be weary of believing this will last. It can be short lived. Understanding hype is an art not a science. Don’t get fooled by articles in Forbes, Yahoo business as these are simple PR pieces paid for by the project.
Finally, remember the whole crypto space has market cycles
Take Profits!
I can’t think of one project that has product market fit with a sustainable token economy that reduces volatility
Therefore expect the tokens to dump like bricks in the bear market once speculation leaves
Take Profits!
I can’t think of one project that has product market fit with a sustainable token economy that reduces volatility
Therefore expect the tokens to dump like bricks in the bear market once speculation leaves
