Is Your Crypto Project Dead Or Alive?
Ever wondered if your investment into a project is still valid or if the project is dead? I would assume that a lot of people that put some money into a crypto project during the peaks of the price action are asking the same question. This is why I want to talk about some indicators that might tell you whether the project is dead or is just taking a break, just to set new all-time highs in the net bull run.
Price Development
The first thing we need to consider is the actual price activity of the project. It is not the only indicator and surely not the most important one but it can definitely give some indication towards the initial question. If the all time chart seems to set new all time lows, we could assume that the project is evolving and that a new all-time high should be somewhere around the corner. But if the chart looks like the second example, we can assume that something is wrong with this project and that it might not recover again.
I know that this guideline is very vague, as many projects could have been released during a bull run and therefore could have not set any new all time highs and are just going down since the release. In this case we need to consider the supply and demand of the token. Is there a vesting schedule, who is holding most of the tokens and does it have infinite or finite supply? All these questions should be taken into consideration whether a token is already dead or still in the works of reaching its potential.
Community
Next up is the community. This goes hand in hand with the demand part of the precious point. If a project has a big community that is willing to use the token even though the prices are going down, then it is a clear indicator that this project is certainly alive. If there are no people that are supporting this project, or even worse if the token does not have any utility and does not plan to bring any utility, then this should be a big red flag towards a declining project. A lot of times, this indicator can easily be researched either on the blockchain or on social media sides that are representing the project. If the community is active and is able to answer questions regarding this project, then you could at least assume that this project is not completely dead. On the contrary, if the social media sounds like crickets after a bad joke, then this should be a clear sign to stay away from this project. Further options would be to check sites like cointelegraph who are delivering news about what’s happening in the crypto space.
Funding & Listings
Speaking of news. Most of the time it is possible to determine whether a project is dead by checking some headlines regarding the project. If the project is able to acquire constantly new fundings then it should be a clear sign that the project is thriving and well. This is because investors would not choose to invest their money into projects that do not have a vision and a potential future. On the other hand, if the projects does not seem to get funding, you should be more careful as this can be an obvious sign that something is wrong. Most of the time the money flow does not lie and if you want to be clever then you should pay attention to this.
Related to funding are also Listings. If a project is not listed on at least one of the major exchanges, then it could be a sign of a scam or just a project that is not well managed. While this can be true for the majority of the project, I think this point is very carefully to follow. A project can be good even if it is not listed on a major exchange. The best example is Osmosis. The Cosmos-DEX only offers its coin on the Osmosis exchange which is decentralized. I think this is a total valid method and helps the project to be decentralized. It still should be mentioned that at the current state all major projects should be listed on a major exchange like Coinbase to receive a good amount of publicity.
Development Activity
Lat but not least, we have to talk about the development activity of a project. In my opinion this should be one of the most important points if you are accessing a project. Does it have a clear roadmap? Are there constantly updates? How many developers does this project have? All of these questions are important. If a project seems to have a very slow progress curve and the developers are staying away from it, so should you. A project is only as good as its developers and if nobody is working on the project the state of the projects will not change. On the other side, if the project has a considerable amount of developers that are constantly working on new updates, the project should be well alive and it should only be a matter of time until the next all-time-high comes around the corner.
Conclusion
To conclude this article I want to mention that each time somebody is considering to invest his money into a project they should do their own research. It is very important and the previous points should help to determine whether a project is dead or not. Furthermore, I think that if you truly believe in a project, you should not sell your shares at the first sight of troubles. If you think that the team behind the project is able to solve the problems then everything should be fine.
Published by JulioBorgues on
