Must-see investment research: teach you how to do project investment research

Note: This article is from @althunter31 Twitter, which is a professional trader. The content of the original tweet is organized by MarsBit as follows:

[Must-see investment research: teach you how to do project investment research]

Every day in the currency circle, there are new concepts and new hot spots appearing every day.

Therefore, in this high-speed iterative industry. You must master a set of investment research methodology, which will allow you to reduce #FOMO in the currency circle, achieve long-term wealth growth, and remain invincible!

🧵This thread will teach you how to build an investment research system through 10 steps step by step👇

1 project goal

When evaluating a project, you first need to think about the needs or problems that the project needs to solve. For example:

- AMM: Solving the MM problem ( @Uniswap , @Curve )

-Oracle: Addressing data and pricing issues ( @Link )

2 value

For the dimension of value, we might as well think about three questions

- What technology does the project use and is it feasible?

- Did it actually solve any problem?

-What value does the product create for users?

2.1 Why explore value?

A crypto project that offers clear and tangible benefits to its users, such as faster transaction speeds, lower fees, or unique features, can help differentiate itself from other projects and attract users.

Like: making crypto easier for beginners with #Gamefi.

It should be noted that issuing coins does not represent a product, which is why pure PFP NFT projects have a high probability of failure.

3 Product actual test

Through product testing, explore whether the application is perfect and the product is mature. for example:

- Usability: If a project is user-friendly and easy to use, it can attract more users.

- Security: Projects with strong security measures such as encryption, multi-factor authentication, and other protections can help build trust and engage users.

4 competition

In the currency circle, there are countless copied projects, and we are looking for projects with unique value.

We can do a competitive analysis in several steps:

4.1 Identify competitors: Research similar projects, check token rankings and market caps, analyze social media and community engagement.

4.2 Analyze their technologies: Evaluate the technical characteristics of each project, including their scalability, security, and interoperability.

4.3 Market Trends: Evaluate overall market trends within the industry and how each project fits into these trends.

4.4 Evaluate token economics: including token supply, distribution and use cases. This provides insight into how they motivate users and drive adoption.

4.5 Team and partners: Assess the team, experience and partners behind the project. Strong partnerships help drive adoption and credibility.

5⃣Project team

When working on any project, the team is crucial. Especially early in a project, the most critical variable is often the team.

I wrote a thread before about how to analyze a crypto project team in 8 steps. If you haven't seen it, I highly recommend you do.

https://twitter.com/althunter31/status/1663438767846477825?s=20

6 Technical Analysis

Analyze the technology behind the project, such as scalability, security, interoperability, consensus mechanisms, and developer activity.

- Scalability: Projects with limited scalability, such as TPS at layer 1, may struggle to gain adoption and may face scalability issues in the future.

- Security: Are there any known bugs or weaknesses in the code? Are there any successful attacks?

6.1

- Interoperability: Refers to the technology's ability to work with other platforms and protocols such as EVM. Projects that can integrate with other platforms can benefit from greater adoption and network effects.

- Consensus Mechanism: Evaluating the consensus mechanism is important to ensure it is secure, decentralized and efficient.

- Developer activity: Are developers doing regular updates and improvements? Is the code base regularly maintained and updated?

7 Token Economics

-Token Supply & Economic Model: Analyze the total supply of tokens and their issuance speed. Is there a mechanism to control the token supply, such as inflation or deflation?

Are there mechanisms to incentivize users to hold or use tokens?

- Token & Yield Distribution: Analysis of how tokens are distributed, including initial distribution and any ongoing distribution mechanisms

- Use case: analyze the use case and how it is used in the network or ecosystem

8 Marketing and Social Media

Community and marketing, are very important in cryptocurrency.

We need to see if the marketing of the project party is really effective.

Whether the community is growing steadily.

Go to @twitter , @discord , @telegram of the project party , and remember to filter whether the fans are real or fake.

9 partnerships

The relationship between the project and other projects/exchanges/communities is an important factor in determining the success of a project, and a strong partnership can ensure a smoother progress of a project.

-Exchanges: the quantity and quality of listing exchanges;

-Partnerships: partnerships with other companies and projects that help drive the adoption of the token and increase its visibility;

- Community Engagement: Level of community involvement.

10 Regulatory environment

Today the industry embraces regulation, so we need to consider regulation

-Region of compliance: The legal status of the token in different jurisdictions is an important consideration.

- Securities regulation: Certain tokens may be considered securities under certain regulatory frameworks.

-Regulatory changes: The regulatory environment surrounding cryptocurrencies is constantly changing, so keep an eye on it. Such as AML/KYC/tax regulations.

📠 write on the back

Project investment research is an essential skill. I firmly believe that systematic investment research can help your wealth grow steadily more than blind fomo.

This thread recommends that you read it repeatedly and practice it. You will definitely use it when you do project research next time!

In the process of investment research, the use of tools is very important. I have shared it twice before, FYI

https://twitter.com/althunter31/status/1663082058577752066?s=20