Investing in new coins (especially IDO/TGE) is a high-risk game. Be sure to check these 4 critical factors before buying!
1. ⚙️ Tokenomics: Unlocking Schedule (Vesting)
This is the most important factor for price pressure.
✅ Good Sign: Long vesting for the team and early investors (minimum 1-2 years). Low percentage of tokens in circulation (Circulating Supply) at the start.
⚠️ Red Flag: Significant "crash" of investor tokens (cliff/release) immediately after listing. Token without real utility.
2. 👥 Team & Backers (Team & Backers)
Check who is behind the project.
✅ Good Sign: Public team with experience in the relevant field. Support from Tier 1 funds (A16Z, Paradigm, Binance Labs, etc.).
⚠️ Red Flag: Complete anonymity of the team. Lack of a proven track record or profiles on LinkedIn/GitHub.
3. 🛡️ Security and Product (Audit & MVP)
An idea is worth nothing. Working code is worth everything.
✅ Good Sign: Successful audit of the smart contract from reputable companies (CertiK, Hacken). Presence of a minimally viable product (MVP), not just a Whitepaper.
⚠️ Red Flag: Lack of any audit. Promises that cannot be fulfilled.
4. 💰 Market Capitalization (Market Cap)
Don't look at the price $0.01. Look at the capitalization.
✅ Good Sign: Low Initial Market Capitalization compared to competitors. This gives more room for "x's".
⚠️ Red Flag: Overvalued FDV (Fully Diluted Valuation) and high initial capitalization.
DYOR & NFA! Always conduct your own analysis. Do not invest money you cannot afford to lose. Good luck hunting for gems! 💎
