Does the project solve a problem you didn't even know you had?

C4m3...BjR8

9 Apr 2024

When I was a child, my mind questioned everything. My curiosity was relentless. Every corner was an opportunity to explore, and every question was the beginning of a new adventure!
As adults, we tend to forget to ask questions, yet they remain one of our most powerful tools for growth and understanding in a world ruled by complexity and uncertainty.
Embracing the inquisitive spirit of childhood can be a game changer.
When evaluating a crypto project and its tokenomics, it's essential to ask questions and conduct thorough research. Asking the right questions helps us better understand any crypto project we encounter.
While questions may vary for different roles, such as users, developers, and investors, there are general fundamental inquiries to consider regarding the Primary Value and Secondary Value (s) of a project/token.
Understanding a project or token's primary and secondary values provides insights into the fundamental drivers of success and longevity, allowing us to make informed decisions about investment strategies, risk tolerance, and long-term goals greater.
Here's why it's important:
Primary Value: The primary Value represents the core benefit or unique selling proposition (USP) of the project or token and the primary reason users, investors, or developers are drawn to it. Knowing the primary Value helps identify the key features or functions that differentiate the project from competitors.
For example, suppose a cryptocurrency project's primary Value is its scalability and low transaction fees. In that case, we can evaluate whether these features align with market demands and have the potential to drive adoption and value appreciation over time.
Secondary Value (s): While not as critical as the primary Value, the secondary Value (s) encompasses additional benefits or functionalities that complement the primary Value, enhancing the project or token's overall attractiveness or showcasing its versatility and potential for expansion into new markets or use cases.
For example, if a cryptocurrency project's primary Value is its security and privacy features, its secondary Value could include interoperability with other blockchain networks or integration with decentralized finance (DeFi) applications, which would offer users additional utility and flexibility.
To understand the project's purpose and primary Value, ask yourself what feature or function is essential to its success.

What does the project/token actually do?
Which feature or function, if eliminated, would yield the most severe repercussions?

The answer to these questions will reveal the project's primary Value.
What about secondary values?
Make a list of all the other features and functions of the project, and you'll identify the secondary values associated with it.

The Investors' Perspective

As an investor, you aim to identify projects or tokens that satisfy as many of the following criteria as feasible:
A fixed supply of coins/tokens: In a world where central banks can create money out of nothing, cryptocurrency's scarcity makes it a valuable asset. Scarcity becomes the mother of Value. A fixed supply of coins or tokens ensures scarcity, establishing a foundation for intrinsic Value. This scarcity model emulates the finite nature of precious resources, fostering investor confidence in long-term value appreciation.

Is the token supply as stable as a monk in meditation, or is it more volatile than a toddler on a sugar rush?
If the token supply were a cake, would it be a slice of grandma's homemade pie (limited and precious) or an endless buffet (never-ending and questionable)?

Steady Release Schedule: Inflation is a silent assassin lurking in the shadows, waiting to strike. A steady release schedule or complete circulation of tokens mitigates the risk of inflationary pressure on the asset's Value. This stability preserves the purchasing power of investors' holdings, instilling trust in the project's economic sustainability.

Is the project's release schedule as reliable as a Swiss watch, or is it more like waiting for the next season of your favourite show (always delayed and full of surprises)?

Wide Ownership Distribution: A broad distribution of ownership minimizes the concentration of influence among a select few holders, reducing the susceptibility to the predatory jaws of market manipulation and enhancing market stability. Diverse ownership fosters a decentralized ecosystem, aligning with the ethos of many cryptocurrency enthusiasts.

If ownership was a pizza, would everyone get a fair slice, or would you be stuck with the crust while others feast on the toppings?

High Trading Volumes: High trading volumes are the lifeblood of any thriving ecosystem and a testament to a project's vibrancy and vitality. Elevated trading volumes signal robust market activity and liquidity, reflecting strong demand and investor interest in the asset. A liquid market ensures efficient price discovery and facilitates seamless transaction execution, enhancing the asset's attractiveness to investors.

If trading volumes were a dance floor, would it be a wild rave with a massive sound wall, lasers, glow sticks, or a sad high school prom with slow dances and awkward glances?

Large and Growing User Base: A large and growing user base represents a diverse community of individuals, each one contributing their unique perspective and passion to the tapestry of innovation. It also signifies widespread adoption and acceptance of the crypto project. A growing community fosters network effects, driving utility, Value, and innovation within the ecosystem, ultimately underpinning long-term viability and success.

Is the project's user base expanding faster than a rumour in a small town, or are they more elusive than Bigfoot sightings?
Does the project's growing user base make you feel part of a thriving community, or are you just a lonely voice in the void?

Total Addressable Market: The total addressable market represents the potential size and scope of the market that a cryptocurrency project can serve. A large and diverse market opportunity offers ample room for growth and scalability, attracting investment and fostering sustainability in the project's growth trajectory.

Is the project's total addressable market bigger than Elon Musk's dreams of colonizing Mars, or are they aiming for a small pond when they could be swimming in the ocean?

Ability to Earn Yield: The ability to earn a yield on a project's coin or token allows investors to generate passive income on their holdings. Yield-generating mechanisms such as staking, lending, or liquidity provision incentivize participation in the ecosystem, rewarding investors for their contributions and commitment to the project's success.

Does the project's ability to earn yield incentivize you to get involved, or are you still waiting for a sign from the universe to jump in?

The more we checked, the more appealing the project/token is.
We can also ask:

Is this project more than just a fancy whitepaper and a catchy website? Or is it all sizzle and no steak?
How many memes does the project generate on social media per day? More importantly, how much substance lies beneath the surface?
Is the project's roadmap more like a treasure map or a roadmap to nowhere? Are they hitting their milestones or leading investors on a wild goose chase?
Does the project have more buzzwords than actual utility? Are they disrupting an industry or just trying to disrupt your investment portfolio?
Is it just a passing trend or a long-term contender? (: Nothing wrong about trends… identify them to plan a swift and hopefully lucrative exit :)

The User Appeal

What do users actually do with it besides buying or holding it? What problems does it solve for them?
User Benefits: Consider how the project solves problems for users beyond buying or holding tokens.
For example, the RNDR network enables graphic artists to access additional computing power for generating large 3D files without investing in expensive hardware. So we might ask:

Does this project solve a problem you didn't even know you had? Or is it just another solution in search of a problem?
Is the user experience smoother than a freshly waxed Lambo? Or does using the platform feel more like riding a rusty old bike with square wheels?
Are you genuinely excited to use the project, or are you only here for the potential gains? In other words, are you in it for the tech or the tendies?
Does the project respect your privacy and security like a loyal bodyguard? Or are they more like that sketchy guy lurking in the dark alley asking for your private keys?
Would you recommend this project to your grandma? If not, why would you recommend it to anyone else?

The Developer Engagement Factor

Developers seek projects with a large and growing user base for which to build products. Additionally, they prefer a smooth development process. When evaluating a project from a developer standpoint, consider:

Size and growth rate of the user base compared to competitors.
Quality of developer documentation.
Existence of a supportive developer community.
Availability of third-party forums or sources of information for assistance.
Ease of learning and navigating the project's coding language.

What does a developer want from the project? First and foremost, a large user base for which to build products.
How big is the project's user base? How fast is it growing? Where is it in comparison to its competitors?
Second, you want the development process to be as easy and fluid as possible:

How comprehensive is the project/token's developer documentation?
How big is the existing developer community? Does the project's developer community feel like a supportive family or a dysfunctional cult? Are they welcoming newcomers with open arms or throwing them to the wolves?
Are there third-party community forums/sources of info where devs can get help when building?
Is the project coded in a language that is easy to learn and navigate? Is the project's codebase cleaner than a freshly laundered suit? Or are there more bugs than in a swamp in summer?
Are the project's APIs more accessible than a 24/7 convenience store? Or do you need a secret handshake and a blood sacrifice just to get the basic documentation?
Are the project's smart contracts more secure than Fort Knox? Or are they about as safe as leaving your wallet on a park bench?
If the project were a programming language, would it be Python or Brainf0ck? In other words, is it a joy to work with or a headache-inducing nightmare?

Some of these questions may feel like a joke, but they aim to cut through the hype and get to the heart of what matters when evaluating a crypto project: its substance, utility, and potential for long-term success.
DYORing is vital in making informed decisions about finding good projects or coins in which to invest your money and/or time.
I have one more question:
Does the project's purpose resonate with you on a deeper level, or does it leave you feeling emptier than a black hole in space?