@Professional Formula for Researching Crypto Projects
Professional investors usually analyze a crypto project using 7 key steps.
1. Problem & Solution
Check what real-world problem the project is solving.
Example:
Ethereum introduced smart contracts, solving trust and automation problems.
If a project has no clear purpose, it may be weak or a scam.
2. Team Research
Check the development team:
LinkedIn profiles
Previous experience
Past projects
Example:
Binance founder Changpeng Zhao had strong industry experience.
Anonymous teams increase risk.
3. Tokenomics Analysis
Important metrics:
Total supply
Circulating supply
Team allocation
Vesting schedule
If developers hold a very large portion of tokens, manipulation becomes easier.
4. Market Cap Analysis
Market Cap = Price × Circulating Supply
Lower market cap projects have higher growth potential but also higher risk.
5. Community Strength
Check:
Twitter followers
Telegram activity
Discord engagement
A weak or bot-driven community is a red flag.
6. Liquidity and Exchange Listings
Check:
Whether liquidity is locked
Which exchanges list the token
Listings on major exchanges like Binance usually increase credibility.
7. Development Activity
Check GitHub updates:
Regular commits
Active development
An inactive repository can indicate a dead project.