*** Long text, but very important! Don't be lazy and read before investing in a cryptocurrency/token!
🚀The fundamental analysis of a token is a method used to assess the intrinsic value of a crypto project, it distinguishes you as an investor and not as a gambler.
Below is a partial script with the most important points for a "Fundamental Analysis", ideal for personal study.
📌The goal is to quickly understand what the project is and where it fits in the market.
Project Overview and Real Use
· Project Proposal: Is it innovative, more efficient, cheaper, or decentralized? Does the project solve a real problem or just say things like 'we are the new Bitcoin/Ethereum'?
· Key question: If this project ceased to exist tomorrow, would anyone miss it?
· Category: In which narrative, DeFi, Layer 1, Layer 2, RWA, Gaming, AI, etc.
· Blockchain where it operates: (Ethereum, Solana, BNB, own blockchain,
etc.)
· Has important partnerships: Microsoft, Black Rock, Google, Amazon; Companies like Pantera Capital (prominent VCs that provide strategic support and liquidity to various DeFi and infrastructure projects), Animoca Brands (Leader in partnerships in the gaming, metaverse, and NFT sectors), etc.; Exchanges like Binance Labs, Coinbase ventures, etc.
· Team: Who is the Founder/CEO; What is the level of experience of the team? Developers, Blockchain DevOps Engineer, Blockchain Developer, Security Specialist/Auditor, marketing professionals, etc.
Below is what I consider the central pillar of the analysis
Tokenomics (The Token's Economy): Analyzes how the token was designed to create demand and manage supply.
· Supply: What is the maximum supply? Tokens with infinite supply can suffer from inflation, while limited supply (like Bitcoin) can appreciate due to scarcity.
· Distribution and Allocation: How much of the token is in the hands of the team, early investors (VCs), and the community? * A very concentrated distribution may lead to 'dumping' (mass selling).
· Utility (Use Case): What is it for? Is the token used to pay transaction fees (gas), governance (voting), or staking to generate returns for holders? A token without real utility has low fundamental value.
· Burn Mechanisms: Does the project decrease supply over time (burn) to increase scarcity?
· Buyback or buyback and burn: Does the project team use generated revenue or treasury funds to buy back their own tokens in the open market to increase trust? Do they use a buyback and burn strategy to reduce the token supply?
Value Proposition and Competitive Differentiators
· What makes this project unique? Is there any sustainable competitive advantage? Strategic partnerships? Does it rely excessively on hype or does it have solid fundamentals?
*** Obviously, there are other important factors to consider, such as:
Roadmap (strategic visual roadmap showing goals, key deliveries/milestones, and the direction of a project over time);
Technology and architecture: More technical language
Business model and value generation: Organic demand or artificial incentives; captured value returns to the token, treasury, or stakers?
Adoption and on-chain metrics to verify active users, TVL (if DeFi):
Transparency: how the team communicates with its community (clarity and frequency), etc.
I hope this makes sense to you!
If you liked the content, please like, comment, and share!
The analyses and news discussed here are for informational purposes, study, and learning. Before investing, do your own research! #dyor
