Are you eager to discover a gem that can distribute large amounts of airdrops, but not sure how to find potential projects?
In this article, you will learn how to filter gem projects that offer lucrative airdrops, what to pay attention to when choosing a project, and how to determine whether a project will have an airdrop.
How to find gems?
First of all, when looking for GEM assets, pay attention to project investments: observe where the major primary funds invest, which of their investments are succeeding, and What cryptocurrency directions they like.
The most well-known TIER-1 funds include a16z, Binance Labs, Polychain Capital, Coinbase Ventures, Paradigm, Multicoin Capital and other funds.
Next, we dive into the white paper and project documentation. To be honest, this part can be a bit boring, but it's important because it should reflect the market and WEB3 problems the project aims to solve. These issues may be related to the high fees of the ETH network, low network throughput, slippage of the DEX protocol, etc.
Pay attention to the project's roadmap - a structured plan outlining its future development. Project goals in the roadmap should be measurable, achievable, and time-bound. Regularly review the project roadmap and evaluate its effectiveness in achieving the goals outlined therein.
Examine the project’s tokenomics
The project’s token economics should be transparent and designed for the long-term life cycle of the project. When analyzing token economics, please note:
Total token supply - determines the scarcity and value of the token. It may involve token burning or the issuance of new tokens to draw attention to the ecosystem.
Investment Round Plan – Helps determine when tokens will be unlocked and their prices.
In the seed round, the unlocking time should be set to at least 1.5 years and no more than the total 10% of generating events (TGE).In the private placement round, the unlocking time should be at least 12 months, and the token price should not exceed the price in the seed round.In public rounds, the financing round should not exceed 12%+ of the total funds raised by the project during the listing and launch period; Otherwise, there will be no token purchases in the list.
Token Allocation - Determine who owns tokens in the ecosystem and in what proportion. Pay attention to the proportion of tokens allocated to the community or airdrop (ideally, the proportion should be greater than 5).
Calculate the total token supply multiplied by the percentage allocated to airdrops and then divide by 100 to get the total number of tokens allocated to airdrops.
Also, note whether the token economics include allocating a portion of the token for further development and marketing - this can significantly boost the token.
Evaluate attribution. Vesting involves locking tokens with pre-defined unlocking conditions to avoid mass token sales, thus maintaining the stability of the ecosystem and ensuring its further growth.
If the exercise conditions specify a unified number of tokens to be unlocked by the investor (at least 3 years ), which bodes well for the project ecosystem.
All information about the project’s token economics can also be found on Cryptorank and DropStab.
Review the project's social media presence
Fake followers, bots in comments, and Inactive social media accounts are red flags. Check Twitter, Telegram, Discord — assess the strength of the project team, observe who is promoting the project, gauge social media support, and track how often the project has updates, AMA sessions, and contests.
All of this will help identify the loyalty and openness of the project and its team.
To evaluate Twitter, it is best to use tools such as TwitterScore and TweetScout.
Analyze on-chain metrics
Check how much Total Value Locked (TVL) a project has. TVL shows how much money is locked in a project and is a very useful metric for project development. The higher the TVL the better.
This will also be useful for monitoring the market capitalization and trading volume of the project. These metrics provide an overall picture of how quickly a coin becomes popular and attracts a lot of attention.
To assess market capitalization, you can use the MarketCapOf service - a tool that calculates the potential price of one cryptocurrency using the market capitalization of another cryptocurrency. It is best to compare cryptocurrencies with the leaders in the cryptocurrency space being studied to assess whether there is an opportunity to achieve the same capitalization as the desired coin.
Also, it’s a good green flag if the token is immediately listed on multiple exchanges.
Also, check the project's tokens on Etherscan, which will show the number of token holders, including investors and exchanges, and their flow of funds on the blockchain. We discussed Etherscan here.
Check popular trends
Finally, review the popularity of the industry the project is developing degree. Google Trends can help with this, showing popular trends in the form of charts and regions.
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