How to Spot If a Crypto Project Will Possibly Be a Success
Since the huge wave of interest stirred by Bitcoin in the late 2010s, a large number of projects are being launched every week. Not every coin has a bright future, and not every coin is destined to be the next Bitcoin or ETH killer. To ensure you don’t fall for a scam, here’s a list of the three most important things to look for when investing in a coin:
Tokenomics or the token’s economics is the keystone of a crypto project and its competitiveness. Tokenomics is the method in which the token will be distributed, its use cases, incentivization, burn calendars, anti-inflationary practices, and so on. Since crypto tokens are infamous for their arbitrariness, a crypto project with good tokenomics can often allay fears about any sudden changes in the market that can spook investors.
For example, a token with deflationary mechanisms is good for a market where speculative investors can often bring up a coin value by many multiples, anti whale mechanisms prevent a few wallets from amassing large chunks of the coin market share, introducing a sense of stability. Gradual growth with small, incremental gains over a rational time period shows a growing and healthy interest in the token.
A project’s vision is critical to its investors as well as the wider crypto community. A good way to understand it is to read its whitepaper and project roadmap. Reading the whitepaper will help you understand what the project is, how it functions, and if you’d like to go in-depth, its technical details. A roadmap is the explanation of the project team’s vision, and the steps needed to achieve it. A good and trustworthy project will have realistic targets spaced out over a while, usually a year or two. Short-term roadmaps may be beneficial for day traders, but long-term investors should focus on the entire roadmap.
The first thing most people look for after learning of a new project in the space is its traction: Traction refers to partnerships (for distribution, go-to-market, technology, centralized exchanges etc..) However, What’s more important to look at would be their investors, partners and other B2B relations.
These investors have years of experience in working with young companies and projects and provide excellent financial advice and guidance. When looking at a project’s website or whitepaper, one should also take note of the number of investors, as well as the presence of any notable names on it. The project has a high chance of being a success in the future if prominent firms have invested in it.
The second thing most people look for after learning of a new project in the space is its community, it is usually on Twitter. A robust social media presence can mean that there is a huge community invested in the coin, enough to “take it to the moon”. To weed out dishonest projects that may have bought “bot followers”, check the interactions on their posts. If their posts have underwhelming interactions when compared to their number of followers, it is quite likely that the project is shady and should not be trusted.
All of the factors we’ve explored above play vital roles in predicting a project’s success. But even so, over-reliance on these is not a wise decision.
Even with excellent tokenomics, a project may fail due to subpar utility and an insubstantial amount of holders. A large community may not always translate to a large number of holders (especially in the NFT space), high valuations may lead to inflation if not paired with anti-inflationary measures, and so on. It is important to consider all perspectives before jumping into a potential investment.
Enjinstarter, one of the premier IDO launchpads, has moved beyond just launching IDOs for NFT-based games and other entertainment projects as of March 2022. Unlike most other IDOs, they have seen the value in educating the general public and introducing them to the world of blockchain and the metaverse, paving the way for future mass adoption. This is being done via training sessions available in 4 languages: English, Mandarin, Indonesian and Vietnamese, all via live Zoom meetings.
The platform has also started assisting select projects with their distribution and advertising even after their IDOs, going above and beyond what an IDO launchpad typically does.
- To help with distribution, Enjinstarter will come up with plans for monetization and expanding your project’s player base with their dedicated support teams.
- The Monetizing strategies feature standard revenue generation strategies, as well as out-of-the-box thinking acquired from years of experience at the world’s biggest IDO launchpad.
- Enjinstarter is also hosting tournaments and championships with monetary and NFT prizes, such as the EJS GameOn Tournament. Via these tournaments, the player acquisition is a piece of cake; acquiring more than a quarter-million players so far.
If you’re a brand new project in need of an IDO and beyond, reach out to Enjinstarter to grow your project in the best way possible.
Hopefully, the post has given you insight into the most important methods to check a blockchain project’s success and future viability.
Enjinstarter’s vision is to go beyond just being a launchpad for gaming IDOs, and becoming the first choice for all blockchain projects in need of assistance with monetization, player acquisition, IDOs, education, and much more.
If you’d like to learn more about Enjinstarter, visit the website here.