Let's talk a bit about the Backers…
Well, you know yourself, if you bring a project to a country and show proof that the UN or UNICEF is behind you, many people will want to cooperate with you because you are validated and supported by major institutions.
It's the same here in crypto; a project that is validated and supported by major companies in the sector will have more credibility with investors. There is a strong chance that investors from the companies supporting the project will become investors in the project.
Binance Labs, OKX Ventures, and BYBIT… these are big names in the sector that often support projects; once you see these names, know that the project is credible, but these names are not a guarantee of success. It remains a project, it can still fail.
In addition to these names, we can also see companies like Google, Microsoft, PayPal, MasterCard, Revolut, Robinhood, and other major financial institutions beginning to position themselves in the sector like with ONDO.
But as I mentioned earlier, having Backers does not mean that the project will necessarily succeed. Only invest what you are willing to lose, set aside your feelings, and be rigorous in your project choices; thus, even if the project fails, you will not be so affected. But if the project succeeds, you will have made a good investment.
We have gone through all the steps of the good analysis methodology; let's wrap this up with the community section.
This reflects what is actually happening with the project. If all is well, the community is healthy and reacts positively. Take, for example, a project that makes a post on X and has over 100,000 subscribers but only gets 10 interactions on its post… Red flag🚩 my friend, 95% of the subscribers are fake accounts or bots…
Every time they post in their Telegram channel, they say ×××$ to the moon 🚀, with images of Ferrari or Lamborghini with the mention when Lambo… and the discussions revolve only around the price… You are in a bear trap that can cost you your leg at any moment. Just run away.
Know that fundamental analysis is just as important as technical analysis. Don't just look at the price and the hype, always do your own research, take all these parameters into account before putting a single dime into a project and don't invest more than you are willing to lose.
Let's recap the steps:
×××> What problem are they solving?
×××> Why do they need a blockchain?
×××> Where is the development at?
×××> The utility of the project
×××> The token management mechanism
×××> When did they plan this?
×××> How do they plan to achieve this?
×××> Are they on track for previous deliverables?
×××> Who are they? (Their background, their projects, their networks)
×××> Are they anonymous or doxxed?
×××> Do they organize AMAs regularly?
×××> Who supports the project?
×××> Is the community alive or ghostly?