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To start researching a project. What do we need to do?

One of the important factors for us to be able to stand firm in this Crypto market is knowledge. We have to follow the project, learn new conceptual information. Therefore, BTA would like to introduce to everyone some very useful ways of tracking, these information were introduced by @DazaiCrypto who is also very interested and passionate about this market. Let's take a look at the information he shared with BTA.

Unique point, novelty of the project

What makes a project unique in the eyes of people? Not a staking project that has a higher APY than others. Nor does one game have a larger number of players than the other. Not even a payment app with lower transaction fees than others on the market.

(here the writer gives 3 examples QRDO, KADENA, QUARTZ)

However, do not choose projects with too unique features but do not bring high use value. Ask yourself the question: Does this project have unique novel features and bring value to the market?

Tokenomics

Tokenomics is the element that needs to be spent the most time and effort when researching a project. Understanding tokenomics will help us estimate the price as well as grasp the practicality of a project, greatly contributing to helping make investment decisions later.

Token Allocation

Each project has a different token allocation time, some choose before the launch of the project, some choose to sell it publicly. And usually tokens will be allocated for the following purposes:

  • Team: Tokens are kept for members of the founding team of the project.
  • Seed/VC/Investors: Tokens are sold to investors at a favorable price.
  • Private sale: Tokens are sold for a limited time.
  • Public sale: Tokens are sold publicly.
  • Foundation/marketing: Tokens allocated for marketing the project
  • Liquidity pool: Token used to create liquidity pools.
  • Staking/mining reward: Tokens are rewarded for staking/mining activities.

Vesting tokens

Tokens will be returned to the buyer at different times. Ideally, tokens should be paid in installments with a small number of tokens per payment. Because the longer the payout time, the less the number of tokens paid each time, the less the price of the token is affected.

Always keep an eye on a project's token return schedule, if a big unlock is about to happen, the token price can be catastrophically dumped.

VC/Seed price

Find out the price of tokens that major investment funds are buying and compare with the current token price. Tokens that are bought by investors at a good price and have increased many times at present will tend to be more profitable. With low growth tokens, they will be more reluctant to sell. Should avoid investing in projects with a high token allocation rate for large investment funds.

Practicality

Tokens bring to those who own them. Some useful features that a good project should have

  • Staking/boosted APY
  • Discounts: reduce transaction fees
  • Validation: participate in validation and receive rewards.

Check wallet

Use block explorers to check if any wallet address has too many project tokens.

Team

Information about the development team behind each project should also be carefully researched before investing. Many different platforms for us to check information about the project's people such as Linkedin, Twitter or simply even Google, Youtube.

Besides, the way the team interacts with users or the way they update the progress of the project also helps us to have a better view of the project.

Catalyst factor

Some of the factors that catalyze the price of a token are:

  • Product/Mainet launch
  • Central Exchange Listing
  • Collaborations with other projects

Marketing

Twitter: how often does the project post, how many followers do they have, how do they interact with their followers.

Telegram: is the telegram group active? Answering questions shows professionalism. Is there any timely project updates?

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