Whenever you consider investing into a new crypto project, use this decision tree to find out if you should

Let this guide act as a brief decision tree whenever you’re considering to buy into a new project, not financial advice.

1. Consider the value proposition.

• What is this token bringing to the table?
• Is it quick to transact?
• Does it solve a problem?
• Does is improve a system?
• Is it a quality of life improvement?
• Does it have a mission statement?
• Is it secure?

If the answer is yes to all or any of the questions above we can move down the second branch of our decision tree.

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2. Consider the tone of voice

• Is the website talking about how it will moon?
• Is it trying to create too much hype?
• Is the hype based on little else than a mooning promise?
• Does it make a reference to memes?
• Is the tone of voice a bit TOO informal?

If you answered yes to any of these questions you may stop here. This is not a project you want to invest in. Otherwise, we can continue down the 3rd branch.

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3. Consider its blockchain

• Does it have its own blockchain?
• Does it make sense for it to be hosted on the ETH/BSC blockchain?

Again, if either answers are yes you may continue.

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4. Consider its user acquisition strategy

• Does it sound too much like a Ponzi scheme?
• Is it invitation-based?

Answer yes here and you may stop looking into it any further.

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5. Consider its supply and blockchain architecture.

• Is the supply centralised?
• Does it make sense for the supply to be centralised given its blockchain architecture? (like XRP for example)
• Has it been pre-mined and if so who owns the majority of it?

While this might directly disqualify a token by itself, paired with the points above it offers a pretty clear picture on where we stand. And now for the final question:

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6. Do you believe in their cause?

If their mission doesn’t speak to you, why would you invest in it?