Is This Legit? 5 Things to Look for in a Crypto Project

Before investing, you should check the crypto project’s white paper, board and advisory, tokenomics, product use case, and brand community.
There are more than 21,000 cryptocurrencies that exist in the world.
A crypto project’s white paper is the summary of an entire project that all investors read before investing.
LYOPAY is a regulated ecosystem of crypto products, with transparent communication with its community: recurring online conferences and live events to share news from the team directly, and a white paper rich in information: white-paper.lyopay.com

Since Bitcoin introduced itself in 2010, thousands of cryptocurrencies have emerged — each with their own creative name, enticing logo, and persuasive marketing to attract customers into investing in their project. Finding a cryptocurrency that has a true vision and mission can feel like you are grasping at straws, especially when there’s more than 21,000 cryptocurrencies to keep track of. What also makes your search more difficult is that you might be looking at the wrong aspects of a crypto project.

If you really are passionate about finding the crypto project that you think will change the future, here are the five things that you should check first:

1. White Paper

Checking the white paper is a must because it is the summary of the entire crypto project. It is in the white paper where investors can read the project’s purpose, know the team behind it, and its roadmap. Apart from social media accounts and websites, the white paper is an important document made available to the public to help people get to know about the project. Some crypto projects also use the white paper as a marketing tool, especially for investors.

2. Board and Advisory

The second thing that you should check in a crypto project is the board and advisory of the company. Using the internet, it is very easy to find anyone, and the board and advisory of a crypto project are should be searchable online. Make sure that every person is real, including their credentials and experience. If the board members do not have Linkedin, consider it a red flag.

Aside from the board and advisory, look into the team too. How big is it? Do they have enough people in their marketing team, PR team, legal team, customer support, and the like? If every member of the crypto project is genuine, the project itself is can be as true too.

3. Tokenomics

A cryptocurrency’s tokenomics is where the different factors that impact the token’s value are described. These include creation and distribution, supply and demand, incentives, mechanisms, and token burn schedules.

By reading the tokenomics, you will be able to know the maximum supply of a cryptocurrency, how evenly its tokens or coins are distributed, and how often will they burn coins or tokens to avoid inflation. Another important part of the tokenomics is the project’s incentive mechanism, which affects the token’s long-term sustainability.

4. Product Use Case

Use case refers to what a particular cryptocurrency brings to the table. Aside from being a form of digital money, cryptocurrencies can have more than one function. For example, Ethereum (ETH) is a decentralised network for applications and smart contracts, Bitcoin aims to bank the unbanked, while LYOPAY is created to empower people to use cryptocurrencies in their daily lives.

5. Brand Community

How’s the community around the project? Are they excited with every announcement that the project shares? How many likes and comments does each post have? Do their social media accounts have thousands of real followers?

If the crypto project has a strong and engaged community, it means that people believe in the project. Checking the quality of customers that believe in the project is important. If the project’s social media account is followed by crypto traders and enthusiasts, it can mean that they see great potential in the project.

A Crypto Project That Checks All the Boxes

Before you invest in a crypto project, making informed decisions is always better than making blind speculations. Whether you are new in the crypto industry or not, put your trust in a crypto project that checks all the boxes on this list.

LYOPAY is an ecosystem of crypto applications built to promote the mass adoption of cryptocurrencies. The innovative tools provided by the ecosystem will bridge the gap between crypto and fiat currency while staying compliant with international regulations.

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