I found that many newbies don’t know how to look at projects. All they ask is where to buy and how much it can rise. So what should we spot players know about a coin?
Let's talk about this issue again today. In fact, novices can run it according to the model and then combine it with their own understanding, and basically know how to screen it.
1. The protocol itself (fundamentals)
It is the value of existence, what specific problems to solve, how big the market size is, where the landing scenario is, whether the on-chain transaction is smooth, and the growth of active users
2. Founding team (determines the quality of the project)
Choose to obtain well-known seed investment and which partners
3. Financial indicators (team income)
Mainly reflected in TVL, trading volume, and also pay attention to the reserve of funds, try to avoid too many of your own tokens, whether there are short-term airdrops, competitions and other incentive plans, these can be checked through Dune, DeFiLlama
4. Token type
To understand the supply of tokens, try to choose low market value. The market value can be calculated by multiplying the liquidity by the unit price. For example, if the market value of a coin is 11 billion US dollars, you want to increase it 100 times in the future. Today's market value is preferably within 100 million US dollars. If its market value is already 10 billion today, it is difficult for you to expect it to increase 100 times in a short period of time.
This aspect also includes understanding the supply, circulation, fully diluted market value, destruction mechanism, gas consumption, and distribution method
5. Future hype space
There must be a very exaggerated narrative, brand image or unique selling point and the possibility of landing application. The dream must be big and there must be a chance to survive
