With the proliferation of crypto presales, it’s crucial for investors to do their homework before contributing capital. This means combing through the white papers, technical docs, tokenomics models and other materials projects put out to evaluate viability and potential. Here are some tips on navigating the presale paper chase to kick the tires on new crypto offerings.
Read the White Paper Thoroughly
A project’s white paper is the core pillar encapsulating its vision, architecture and roadmap. Read through it fully to understand the scope and mechanics of what the team aims to build. Cross-reference claims against data from other sources. Ask clarifying questions on points requiring elaboration.
Verify Key Claims
Project white papers often make bold claims about technological capabilities, market potential and growth trajectories. Don’t take these at face value. Do independent research to validate claims around total addressable market size, projected adoption curves and competitive differentiation.
Review the Technical Docs
Where white papers summarize the what and why at a high level, the technical documentation should detail the how. Go through technical docs to assess if the blockchain implementation and crypto economic models make sense. Getting expert feedback can help discern viable designs.
Analyze the Tokenomics
Dedicate focus on evaluating the tokenomics model outlined in the white paper. This includes projected token supply, distribution schedules, inflation rates and incentives. Make sure the tokenomics align with long-term value accrual for participants rather than just short-term pumps.
Examine the Team/Advisors
Go beyond just the project leaders listed on the website. Explore the full extent of the team and advisory board through LinkedIn and GitHub profiles. Evaluate their backgrounds for relevant expertise. Check for a history of involvement in past successful or failed projects.
Join Community Discussions
Hop on the project’s community channels like Discord and Telegram to take the pulse of current sentiment. Observe the conversations and types of questions raised. This provides qualitative insights into the community’s degree of engagement beyond hype.
While somewhat tedious, completing due diligence across these areas allows presale investors to separate projects with substantive potential from hollow hype vehicles. The projects most eager for public scrutiny tend to have the greatest confidence in their models and readiness. Do the paper chase diligence before committing your capital.
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