Introduction
Learn how to enhance your crypto research using ChatGPT 4, the premium version. It has the advantage of browsing the internet, what the free version doesn't have.
In this article we will discover how to utilize ChatGPT to review crypto protocols, analyze tokenomics, assess valuations, and make better investment decisions.
These involves the following steps:
Summarizing New Projects
Leverage ChatGPT's powerful summarization feature to extract key insights from complex texts like whitepapers and blog posts. Simplify information and gain a clear understanding of new projects.
Performing Fundamental Analysis
Streamline the process of analyzing a project's fundamentals by utilizing ChatGPT. Prompt specific questions to obtain insights from a seasoned fundamental analyst and arrive at conclusions faster.
Evaluating Tokenomics and Governance Model
Understand a project's tokenomics and governance model to assess its long-term potential. ChatGPT can provide valuable insights into token supply, emission schedule, utility, demand, distribution, and governance.
To perform the above listed procedures, we will take the following step-by-step approach on ChatGPT. And for this guide, I will be using $SUI. I also provided prompt:
Step 0: Getting Started with ChatGPT
Set the stage for maximum results by preparing relevant resources and data. Copy and paste whitepapers or provide links for ChatGPT to browse and generate advanced insights.
Step 1: Reviewing Crypto Protocols with ChatGPT
Gain a solid grasp of a project's fundamentals and protocols by asking specific questions tailored to your research goals. Understand the problem and solution, technology and protocols, and team background and experience.
PROMPT:
"What are the main problems that $SUI aims to solve, and how does it propose to address them?"
"Explain the technology and protocols behind $SUI, including its consensus mechanism, and provide examples of how they contribute to the network's security."
"Provide an overview of the team behind $SUI, highlighting their skills and accomplishments in the cryptocurrency space."
Step 2: Analyzing Tokenomics with ChatGPT
Utilize ChatGPT to analyze a project's tokenomics. Gain insights into token supply, emission schedule, utility, demand, and distribution.
PROMPT:
"What is the total supply, circulating supply, and emission schedule of $SUI?"
"How does the $SUI token function within its ecosystem? What are its main use cases, and what factors drive its demand?"
Step 3: Assessing Community Engagement and Development Activity with ChatGPT
Analyze a project's media presence, social media engagement, development activity, and partnerships. Understand the impact of community engagement and market sentiment.
PROMPT:
"Summarize the social media presence of $SUI, including its size and engagement on platforms like Twitter, Reddit, and Telegram."
"Provide an analysis of the development activity of $SUI, including the frequency of commits and the overall size of its codebase on GitHub."
"List any notable media coverage and partnerships involving $SUI and their impact on the project's market sentiment and credibility."
Step 4: Analyzing Governance Model with ChatGPT
Evaluate a project's governance system and understand its decision-making processes and token holder participation. Gain insights into the role of on-chain and off-chain governance.
PROMPT:
"Explain the role of on-chain and off-chain governance in $SUI and how they influence its decision-making processes and token holder participation."
Step 5: Valuing a Crypto Protocol with ChatGPT
Valuing a crypto protocol involves analyzing various financial metrics such as Total Value Locked (TVL), market capitalization, fees/revenue generated, and more. ChatGPT can assist in analyzing these metrics and help you understand a project's performance and potential investment value. However, it's important to note that valuation is a complex task, and multiple factors should be considered in conjunction with AI-generated insights.
PROMPT:
"Based on the provided financial metrics for Ethereum (ETH), such as Total Value Locked (TVL), market capitalization, and fees/revenue generated, analyze whether it is a good investment."
Conclusion
Leveraging ChatGPT and other AI tools can streamline your crypto research process. By utilizing ChatGPT's summarization, fundamental analysis, tokenomics evaluation, governance analysis, and valuation capabilities, you can save time and gain valuable insights.
However, it's important to exercise critical thinking, validate findings with multiple sources, and seek expert advice when needed. ChatGPT should not be the sole basis for making financial decisions, but it can be a valuable resource in your research toolbox.