How to Research New Crypto Projects Before Investing
Great narratives emerge on social media only after genuine signals appear in documentation, code usage, and on-chain behavior. Conducting independent research (DYOR) shields investors from recycled HYPE and enables confident position sizing. Every new token should be evaluated like a startup: scrutinize its product, customer base, revenue model, and token value accrual mechanisms. For beginners, a structured approach ensures consistency across evaluations.
The evaluation process begins with a one-sentence thesis identifying the payer-protocol relationship and chain necessity. Tokens existing solely for capital raises face steep adoption hurdles. Authentic links—website, documentation, GitHub, application, and verified social accounts—must be verified to avoid phishing scams. Always cross-check contract addresses through multiple official channels before engagement.
Architecture and user flows warrant preliminary review, followed by hands-on testing via a small wallet. Onboarding friction or missing Core features often signal underlying issues. Document functionality, failures, and roadmap promises. Value distribution to token holders—whether through fee sharing, buybacks, staking rights, or collateral utility—must be explicit. Emissions-dependent models without sinks inevitably succumb to dilution.
