15 Key Criteria for Selecting Quality Projects

#The world of cryptocurrency is fast, complex, and risky. Therefore, conducting a solid fundamental analysis before investing is very important. But the truth is: It is difficult to find a project that will 'definitely rise' with only surface-level information.

In this process, many factors come into play, such as liquidity in global markets, the guidance of major players, and investor psychology.

Nevertheless, the following topics will serve as a strong guide to distinguish projects based on solid foundations.

1. Project Purpose and Vision

What problem does a #crypto project want to solve? What is its purpose? For example: 'To make decentralized finance services accessible to everyone' should be a clear vision. Avoid silly, copy-paste visions.

2. Founder and Team Review

Who is developing the project? Have they previously been involved in successful projects? You can check the backgrounds of team members on platforms like LinkedIn. Anonymous teams are generally risky.

3. Whitepaper and Technical Documents

#Whitepaper is the detailed business plan of the project. It can be very technical, but at least it explains what they want to do and how they will do it. Are there just flashy words, or is there a realistic plan? Check these.

4. Token Economy (Tokenomics)

Total supply, circulating amount, how the token is used, is there a burn mechanism? Does it provide value to the investor? Is the supply limited? If the #Token economy is solid, the price potential may be higher.

5. Investors and Partnerships

Which VCs (venture capital firms) have invested? If there are strong investors like Binance Labs, a16z, Sequoia, that is a plus. Partnerships with real companies (e.g., Google Cloud) also provide assurance.

6. Community Strength and Social Media Activity

How active are they on platforms like Telegram, Discord, Twitter? Are they real users, or is it filled with bots? If the community is strong and participatory, the project may have longevity.

7. Roadmap (#Roadmap) and Developments

When will the project do what? Have they fulfilled what they stated in the roadmap so far? If there is a delay, why? A current and clear roadmap is essential.

8. Competitive Advantage and Competitor Analysis

Are there other projects doing the same thing? Why is this project better? What does it offer that is different? If it has unique and strong aspects compared to its competitors, it may be preferred.

9. Real Use Case (#Utility)

#What is the token used for? Is it just for buying and selling, or is it actually used in a system? For example: if it has uses in areas like staking, governance, or payments, that is a plus.

10. Regulatory Compliance and Legal Status

#Is it in trouble with institutions like the #SEC? Is it registered, licensed? Legal compliance is of great importance, especially for projects based in the USA and Europe.

11. Liquidity and Exchange Listings

#On which exchanges is the token listed? Is it only available on small exchanges or also on major platforms like Binance, Coinbase? If liquidity is high, trading becomes less risky.

12. On-Chain Data (Activity, Wallet Distribution)

How many active wallets are there? Is a large portion of the tokens held in a few wallets? There may be centralization risk. You can access this data from #Blockchain explorers (for example: Etherscan, Arbiscan).

13. #GitHub and Developer Activity

Is the project open-source? Is it regularly updated on GitHub? If there is active developer contribution, the project is 'not dead'. You can check the code on GitHub.

14. TVL / Volume / User Count

TVL (Total Value Locked), meaning the amount of money locked in the project, is an important metric. If the volume is low, interest may be low as well. The daily/monthly user count is also an indicator of development.

15. Token Distribution and Vesting Schedule

#How much of the tokens is allocated to the founding team, how much to investors, and how much to the community? When do the locks open (#vesting)? You can understand whether there will be significant selling pressure from here.

Conclusion: Fundamental Analysis = Solid Ground

Looking at all these criteria one by one can take time, but it's better than investing blindly. The crypto market is full of opportunities, but it is also risky. Technical analysis works to a certain extent; fundamental analysis provides long-term vision and risk management.

There is no rule that every project will rise. However, by following these steps, you can avoid 'junk' projects and focus on those with potential.