1. Project Purpose & Use Case
Ask:
• What real-world problem does the project solve?
• Is the solution unique or already done by others?
• Is there a clear demand for the token?
Good signs: strong utility, practical use cases, solves a real problem.
2. Technology & Innovation
Evaluate:
• Blockchain type (Layer 1, Layer 2, sidechain, etc.)
• Consensus mechanism (PoS, PoW, DAG, etc.)
• Speed, scalability, security, decentralization
• Code quality (open-source is a plus)
Good signs: audited smart contracts, active developers, innovative tech.
3. Team & Community
Check:
• Who are the founders and developers?
• Do they have credible backgrounds?
• Is the community strong and active?
• Are the team members public or anonymous? (Both can work, but transparency helps.)
Good signs: experienced team, active GitHub, supportive community.
4. Tokenomics
This is one of the most important parts.
Study:
• Total supply vs circulating supply
• Token distribution (investors vs team vs community)
• Inflation rate / emissions
• Staking / burn mechanisms
• Utility of the token within the ecosystem
Good signs: fair distribution, sustainable emissions, genuine utility.
5. Roadmap & Vision
Evaluate:
• Does the project have a clear roadmap?
• Are milestones realistic?
• Has the team delivered past promises?
Good signs: quarterly updates, transparent progress, real achievements.
6. Partnerships & Integrations
Look for:
• Real collaborations with known companies or blockchains
• Not just "marketing partnerships"
Good signs: integrations that actually increase usage.
7. Market Demand & Competition
Check:
• Who are the competitors?
• What is the project’s unique advantage?
• Is the market growing?
Good signs: strong market niche, increasing adoption.
8. Developer Activity
You can check:
• GitHub commits
• New releases
• Technical documentation updates
• High development activity = strong long-term potential.
9. Regulatory Compliance
• Important for long-term survival:
• Is the project following local laws?
• Is the token considered a security?
• Does the team avoid illegal activities?
10. Real Adoption
Most projects fail here.
Look for:
• Active users
• Real-world usage
• Transactions, TVL (in DeFi), user growth
• Partnerships that bring actual adoption, not just marketing.
