1. Financing background
Investors and funding amount
For those who do not know how to do industry investment research, it is better to follow the leading people or groups. You can make decisions 10 to 1 by yourself. Due to information asymmetry and resource advantages, their decision-making ability and accuracy rate are definitely better than that of individuals.
Even if you may not understand the project and don’t know how to proceed with it, if I tell you that Jack Ma has invested and you have the opportunity to participate, just participate. Everyone knows that Jack Ma is pretty awesome.
Therefore, I will basically look at the financing background. The financing background mainly depends on three dimensions: financing institutions and financing amount, valuation
It is important to know who invested, how much money was invested, and the valuation.
A project was invested by Binance, the largest exchange in the universe, with a valuation of 100 million US dollars and an investment of 10 million US dollars. I would participate in such a project without hesitation.
A project has been invested in by an institution I have never heard of, with a valuation of 10 million and a financing of 1 million. So I will consider it.
I personally only look at projects that have raised more than 10 million US dollars.
As for valuation, it is useless in a bull market, but useful in a bear market. There is no top in a bull market, and no bottom in a bear market.
I will put the institutions at the end and rank all the institutions according to their level of awesomeness for your reference.
2. Team
Technical background, university background
What projects have you done before?
Do you have a good university background, such as the Ivy League, Harvard, Columbia, Cambridge, etc.?
In China, there are Tsinghua University and Peking University, and many 985 top universities have entered the web3 industry.
3. Partners
Twitter and other channels
This is also very valuable. For example, if a project cooperates with Binance, it will be very impressive, because Binance does not officially announce its choice of partners at will.
There are many other projects that are cooperating with very powerful partners. Even if the financing background and team information are not announced, we can definitely go for it because the partners definitely know more about them than we do.
4. Quality of work done
For example, Merlin, some new things
This is also a relatively important point. For example, the AI track has been very popular these days, and some evil people have come out to take advantage of the AI heat to make money. In order to catch up with the heat, the things they do are basically of low quality at a glance.
But some projects are different. After reading them, you will know that they are carefully polished, and the story logic, project logic, and product logic can be closed-loop.
Note: The bull and bear market has a great impact on secondary returns. In a bull market, you don’t need to pay much attention to this, but in a bear market, you need to pay more attention to this. In a bull market, even a mediocre stock can soar to the sky, but in a bear market, a mediocre stock will only return to zero.
5. Calculate estimated earnings by participating in the profit and loss ratio
This also needs to be calculated, compared with similar competing products and historical projects.
It is important to learn how to calculate the profit and loss ratio, how much can be produced with an investment of 1000u.
Suppose you only have 1000u. If you invest all of it in a project, you will definitely choose a project with a higher return on investment, and not participate in a project that makes less money.
How to settle this will be explained to you in a separate issue later.
Here is a brief introduction: time cost calculation, gas cost calculation, labor cost calculation, deposited capital cost calculation, infrastructure cost calculation. These are the main costs that make up the expenditure.
To get income, just look at historical projects. For example, by looking at how much money ARB airdropped, you can estimate the subsequent OP airdrops, because both projects are layer 2 projects with high financing and good background.
6. Reasonableness of economic model
Investors and the team are eager to unlock and ship out the goods after locking up their positions for two or three months. It seems that this team is eager to ship out the goods and make money. Can such a project still expect secondary performance?
The second type will not have a very high release until January 25. For this type of project, you can get some coins if they are issued in time. If you can't keep it within a year, it will increase 10 times.
7. New and old projects
Play with new things instead of old ones. Play with old ones to become the leader. Don’t touch projects that have stagnated or been updated.
8. Simple investment research and complex investment research
For simple investment research, just take a comprehensive look at the above content. For detailed investment research, you need to read the above information carefully.
9. KOL needs to be explained separately here
KOLs can be used as a reference, but you cannot trust all of them. KOLs are also very good at making money.
Kol's investment research and tutorials are all used as references. In the past, there have been cases where Kol recommended a runaway project or the tutorial went viral and stole fans' money.
Everyone except yourself should be more vigilant.
10. A simple summary of the most commonly used research platforms: