"What is the most important factor for evaluating a crypto project? 🤔"

For me, the most important factor in evaluating any new project is its purpose or utility.

Think of a cryptocurrency as a tool. A good tool, like a hammer, has a very clear purpose: to drive nails. If someone sells you a tool that has no defined use, would you buy it? Probably not, because you know it is useless.

With cryptocurrencies, it's the same:

A good project has a clear purpose. Its token has a real use, such as paying for a service, giving you the right to vote on platform decisions, or serving as collateral.

A bad project has no clear purpose. Its token exists solely for people to buy it in the hope that its price will increase, without having any real utility. These projects often fail when the initial excitement fades away.

Before looking at the price, advertising, or what they say on social media, ask yourself: "What problem does this project solve? What is this token used for in the real world?"

Imagine you are on the street and someone offers you a bottle of water. You know what water is for: to drink when you are thirsty. Its purpose is clear, and that is why it has value.

Now, imagine the same person offers you to buy a stone. What is the stone for? Can you drink it? No. The only reason you would buy it is if you believe that another person will pay you more for it tomorrow. It’s a simple bet, it has no real purpose.

A good project is like the bottle of water. Its token has a real and clear purpose. For example, it is used to pay fees or gives you the right to vote on project decisions. That is why it has real value.

A bad project is like the stone. Its token has no purpose. It is worthless except for speculation. When people realize it is useless, its price falls to zero.

"What factor do you look at first before investing in something new?"