04-23-2021, 05:06 AM
Whenever you consider investing into a new crypto project, use this decision tree to
<!-- SC_OFF --><div class="md"><p>Let this guide act as a brief decision tree whenever you’re considering to buy into a new project, not financial advice.</p> <p><strong>1. Consider the value proposition.</strong></p> <ul> <li>What is this token bringing to the table?</li> <li>Is it quick to transact?</li> <li>Does it solve a problem?</li> <li>Does is improve a system?</li> <li>Is it a quality of life improvement?</li> <li>Does it have a mission statement?</li> <li>Is it secure?</li> </ul> <p>If the answer is yes to all or any of the questions above we can move down the second branch of our decision tree.</p> <p>​</p> <p><strong>2. Consider the tone of voice</strong></p> <ul> <li>Is the website talking about how it will moon?</li> <li>Is it trying to create too much hype?</li> <li>Is the hype based on little else than a mooning promise?</li> <li>Does it make a reference to memes?</li> <li>Is the tone of voice a bit TOO informal?</li> </ul> <p>If you answered yes to any of these questions you may stop here. This is not a project you want to invest in. Otherwise, we can continue down the 3rd branch.</p> <p>​</p> <p><strong>3. Consider its blockchain</strong></p> <ul> <li>Does it have its own blockchain?</li> <li>Does it make sense for it to be hosted on the ETH/BSC blockchain?</li> </ul> <p>Again, if either answers are yes you may continue.</p> <p>​</p> <p><strong>4. Consider its user acquisition strategy</strong></p> <ul> <li>Does it sound too much like a Ponzi scheme?</li> <li>Is it invitation-based?</li> </ul> <p>Answer yes here and you may stop looking into it any further.</p> <p>​</p> <p><strong>5. Consider its supply and blockchain architecture.</strong></p> <ul> <li>Is the supply centralised?</li> <li>Does it make sense for the supply to be centralised given its blockchain architecture? (like XRP for example)</li> <li>Has it been pre-mined and if so who owns the majority of it?</li> </ul> <p>While this might directly disqualify a token by itself, paired with the points above it offers a pretty clear picture on where we stand. And now for the final question:</p> <p>​</p> <p><strong>6. Do you believe in their cause?</strong></p> <p>If their mission doesn’t speak to you, why would you invest in it?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/CyberPunkMetalHead"> /u/CyberPunkMetalHead </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/mw22qy/whenever_you_consider_investing_into_a_new_crypto/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/mw22qy/whenever_you_consider_investing_into_a_new_crypto/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Let this guide act as a brief decision tree whenever you’re considering to buy into a new project, not financial advice.</p> <p><strong>1. Consider the value proposition.</strong></p> <ul> <li>What is this token bringing to the table?</li> <li>Is it quick to transact?</li> <li>Does it solve a problem?</li> <li>Does is improve a system?</li> <li>Is it a quality of life improvement?</li> <li>Does it have a mission statement?</li> <li>Is it secure?</li> </ul> <p>If the answer is yes to all or any of the questions above we can move down the second branch of our decision tree.</p> <p>​</p> <p><strong>2. Consider the tone of voice</strong></p> <ul> <li>Is the website talking about how it will moon?</li> <li>Is it trying to create too much hype?</li> <li>Is the hype based on little else than a mooning promise?</li> <li>Does it make a reference to memes?</li> <li>Is the tone of voice a bit TOO informal?</li> </ul> <p>If you answered yes to any of these questions you may stop here. This is not a project you want to invest in. Otherwise, we can continue down the 3rd branch.</p> <p>​</p> <p><strong>3. Consider its blockchain</strong></p> <ul> <li>Does it have its own blockchain?</li> <li>Does it make sense for it to be hosted on the ETH/BSC blockchain?</li> </ul> <p>Again, if either answers are yes you may continue.</p> <p>​</p> <p><strong>4. Consider its user acquisition strategy</strong></p> <ul> <li>Does it sound too much like a Ponzi scheme?</li> <li>Is it invitation-based?</li> </ul> <p>Answer yes here and you may stop looking into it any further.</p> <p>​</p> <p><strong>5. Consider its supply and blockchain architecture.</strong></p> <ul> <li>Is the supply centralised?</li> <li>Does it make sense for the supply to be centralised given its blockchain architecture? (like XRP for example)</li> <li>Has it been pre-mined and if so who owns the majority of it?</li> </ul> <p>While this might directly disqualify a token by itself, paired with the points above it offers a pretty clear picture on where we stand. And now for the final question:</p> <p>​</p> <p><strong>6. Do you believe in their cause?</strong></p> <p>If their mission doesn’t speak to you, why would you invest in it?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/CyberPunkMetalHead"> /u/CyberPunkMetalHead </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/mw22qy/whenever_you_consider_investing_into_a_new_crypto/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/mw22qy/whenever_you_consider_investing_into_a_new_crypto/">[comments]</a></span>Kind Regards R