▶️Project evaluation of a cryptocurrency that heavily relies on financial data and tokenomics, which is crucial for understanding the project's strength, viability, and long-term sustainability.
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ℹ️ First: Tokenomics
Analyzing tokenomics means understanding how the currency is created, distributed, and used within the project's ecosystem.
1. 0️⃣ Total Supply and Circulating Supply
The importance of this: If the total supply is very large, it may lead to price inflation over time.
Check:
Total maximum supply.
Current supply in the market.
Percentage in circulation.
2. 📊 Token Allocation
It is important to know:
The percentage of tokens for the team and founders.
The percentage for early investors (private sale / seed).
The percentage for the community and rewards.
The percentage for reserve or treasury.
> ⚠️ Alert: If a large percentage of the tokens are in the hands of the team or early investors, significant selling pressure may occur later.
3. 🗓Vesting Schedule
Are there lock-up periods on the tokens?
When do the vesting periods end?
Projects without vesting periods may suffer a sudden drop when tokens are distributed.
4. 🛡 Utility Mechanism
What is the function of the token?
Governance? Fees? Staking? Means of payment?
Is there really a need for this token in the ecosystem?
A token that is unnecessary often collapses once the hype ends.
⬇️ Second: Fundamental Financial Data
1. 🧮 Team and Advisors
Who are the developers? Do they have a successful track record?
Are there major investors or venture capital firms supporting the project?
Check accounts on LinkedIn and GitHub.
2. 🖥 Whitepaper
Does it provide clear details about:
The solution the project offers.
The technology used.
The business model.
The roadmap.
3. 🗺️ Roadmap
Is the project making progress according to the plan?
Check actual achievements on the website or GitHub.
Is there actual commitment to the community?
4. 📊 Trading Volume and Liquidity
How liquid is the currency? How many exchanges is it listed on?
Is there real activity or wash trading?
5. 👥 Community and Support
The size and interaction of the community on:
Twitter, Discord, Telegram, Reddit.
Having an active community enhances the project's adoption chances.
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➡️ Tools you can use:
Token Unlocks – to know token distribution schedules.
CoinMarketCap / CoinGecko – to track financial indicators.
DeFiLlama – to track Total Value Locked (TVL).
GitHub – to analyze development activity.
Messari / Token Terminal – to track revenue and On-chain analytics.
