With the amount of new crypto Metaverse coins releasing every day, it might be hard to figure out which crypto project is the real deal and which ones are pump and dumps. After looking at hundreds of crypto projects of the years, we decided to list the top three things to look out for in a new project. These include various criteria and details any potential investor should consider before handing a crypto project your money.
When analyzing a brand new crypto project, the first thing that anyone should do is pay close attention to a crypto project’s website design. After all, if a team can’t even design a half-decent website, how can you expect the project to come up with a next-generation Metaverse experience or dApp.
Some more common giveaways I see for low-quality website design are the lack of an SSL certificate, slow-loading images, and no mobile-friendly responsive layouts. In addition, some other things to look out for include buttons that don’t work and a general lack of attention to detail when browsing the website.
Moreover, with how fast crypto markets move, if a project’s website doesn’t have some “connect wallet” button that allows users to login with their MetaMask wallets, chances are the project is vaporware and will die out quite fast.
These days, simply firing up a one-pager website with promises of greatness is not nearly convincing enough for any serious investors.
Speaking of promises of greatness, taking a close look at a project’s whitepaper is equally crucial as analyzing their website. Identifying a low-quality whitepaper is easy; documentation of low-quality projects will have tons of grammar and spelling issues.
Without naming any names, here’s an example of a sentence from a low-quality project:
“[Omitted name] token is a Decentralized Meme Token that Will Take the Place of meme coin by helping every hungry on the Earth by partnering with the Organizations that help end world hunger by donating tax fees.
As well as the token will help reduce price volatility by rewarding each holder”
We can see tons of spelling and grammar issues with content that makes absolutely no sense right away. No investors in their right mind should touch a project that can’t clearly articulate its vision and mission statements.
It’s worth noting that minor spelling issues shouldn’t immediately trigger a cause for concern. After all, there are many great projects with foreign developers that don’t have the resources to proofread their text with no errors.
A perfect example is StarCrazy, a play-to-earn NFT game on the IoTeX platform. You will notice minor grammar issues with confusion between plural and singular verbs if you ever play the game. However, in the grand scheme of things, the grammar issues are trivial, and the game itself works flawlessly.
Exchanges & Volume
Last but not least, when looking at any projects, it’s essential to identify which exchanges they are listed on and where the trading volume is coming from. The best-case scenario is if the token is listed on either a decentralized exchange like PancakeSwap or Uniswap or on a major exchange like Binance, Crypto.com, KuCoin, etc.
The worst-case scenario is if the token is listed on a shady exchange that you’ve never heard about with multi-million dollars in volume. A regrettable but common trend in crypto is wash trading. Many shady exchanges will wash trade new tokens to pump them, so exchange owners or project developers can dump on unsuspecting investors.
As such, if I’m analyzing a brand new project and I see it only listed on a small exchange I’ve never heard of, that’s a huge red flag that’s usually a deal-breaker for me.
Most importantly, listen to your gut and not to the greedy part of it. When looking at a project from an objective view, it’s much easier to tell if a new crypto project has potential or if you should stay away from it.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency.
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Photo by Luke Chesser on Unsplash