Recently, we sat down with our CEO Kartik Mandaville to learn his crypto secrets. What are the things he looks for before investing in a crypto project? What are the important facets of a blockchain company that need to be known before making an investment decision? Read on to find out.
We even made a video. Watch it here.
#1: The Team
According to Kartik, the primary thing to look for is the team. Does the team have any blockchain experience? Have they coded on a blockchain before? What fields do they come from, and how is their experience relevant to the blockchain product that they’re building?
The blockchain is not easy to figure out. That is why, it is extremely important to understand the team behind the project you’re considering to invest in.
#2: The Product
The second thing that Kartik advises is to look at the product. Does the company have a live product on the blockchain? Is it possible to experience it — play with it, explore its features, observe the transactions on the blockchain?
If there is a live product, that means that the team has also had experience building a dApp, and has made some significant effort on their end before going out to the market and raising money.
#3: Does the Solution Require a Blockchain?
Is it possible to do what the company is doing on a centralized service, or does the core concept truly require a blockchain to execute? Blockchains are not easy to build — why is the company using one?
Some concepts are decentralized and some are not — however, sometimes it is beneficial to be on the blockchain even if the concept is not decentralised, in order to convey trust — for example, land registration. It is necessary to know why the company is taking the blockchain approach.
#4: Token Economics
Does the token have a stable coin concept — that means, is there an incentive for a user to hold the token, and not just buy and sell? This could be in the form of premium features, or incentives on the platform for token-holders. If that is so, then that means that the token itself is likely to appreciate.
#5: Community Traction
What is the strength of the project’s Telegram group? What is their reach on Twitter? How active is the community? There needs to be a significant number of people active in the project’s community — this shows that the token has a wide reach and is not just limited the the team’s network.