GamesPad DYOR Guide: How to Analyze IDO Projects

GamesPad DYOR Guide: How to Analyze IDO Projects

GamesPad DYOR Guide: How to Analyze IDO Projects

Even though the crypto community does not have a set of commandments or a strict set of rules, there is something that every trader, investor, and crypto enthusiast should keep in mind the rule #1 – always do your own research. DYOR, which stands for Do Your Own Research, is a common term in the crypto world usually used throughout the Internet due to how fast and easily misinformation can spread.

The DYOR rule aims to reduce the number of uninformed traders and crypto investors. This approach encourages them to research and understand an IDO project before investing in it so that they can answer precisely why they are buying this or that token and supporting a project.

As a community-oriented company, we always take our users’ interest as a top priority. We focus on providing our investors with the best deals and conduct due diligence before launching any project on our platform. 

So today, let’s find out how to analyze IDO projects and what “doing your own research” actually entails. Where should you begin? Which sources can users trust? Let’s dig in to find out more!

How to Do Your Own Research (DYOR)

Here’s a guide that will help you throughout the research process. So what do you need to pay attention to?

1. Team members and advisors

Founders, developers, and other team members are those important people who work hard to make something happen. Knowing about them is a great way to see if a crypto project has what it takes to succeed. Some important things to consider:

  • Are the developers famous or reputable?
  • What is their track record with other projects?
  • How responsive is the team to questions and requests?
  • Is the team known publicly?
  • Do they already have a real working product? When is it expected?
  • Do they have partnerships that live up to their promises?

Most of this research can be done through the official channels and the official website of the project. You can also use social media and other community forums to see if there are more discussions about a particular project.

Don’t forget to check the list of advisors in the same way. Consultants and advisors are extremely important as they open doors for projects, help them with strategies, and more. However, sometimes fraudulent projects claim they are allegedly supported by famous and influential personalities in the crypto industry, but that’s not true. Thus, they try to give the project importance and get potential crypto investors interested.

2. Tokenomics

Before investing in a particular cryptocurrency, you need to understand its tokenomics. It gives you a pretty good idea of whether to invest in it or not.

Tokenomics is actually the economics of a token. It refers to all the qualities of a token that makes it appealing to investors. The tokenomics for a particular crypto token is usually thoroughly discussed in the project’s Whitepaper. It should help you grasp the functionality, objective, allocation policy, and more about the crypto token. Any factor that concerns the value of a crypto token should be taken into account when considering its tokenomics.

You can usually find most factors that make up a crypto’s tokenomics on websites like CoinMarketCap and CoinGecko. Finally, pay attention to the following:

  1. The allocation and distribution of tokens;
  2. The token’s supply (circulating supply, the total supply, and the max supply);
  3. Market capitalization. It shows the entire amount of funds that have been invested in the crypto project so far;
  4. The token’s model (inflationary or deflationary).

You should look for details regarding the token’s historical performance, its use cases, and if possible, data gained from technical analysis. 

3. Roadmap

The crypto project roadmap is a high-level overview of the project’s goals presented on a timeline and the major steps or milestones needed to reach them. Unlike the project’s plan or a White Paper, the roadmap should be simple and free of specific details. Always look for a roadmap, and compare it to what has been delivered so far.

Keep in mind that the roadmap should be realistic and contain real facts. Pay attention to the longevity of the project and their plans for the next year or two.

4. Token utility

Another important thing to check is token utility. A project must have deflationary nature. Tokens need to have an actual use case and mechanism to burn. Crypto burning serves one important purpose — an increase in the value of each remaining token. Tokens without real usability and burn systems usually fail. On the contrary, utility tokens give their holders access to a blockchain-based product or service and are frequently used in Initial DEX Offerings (IDOs) and Initial Coin Offerings (ICOs). In exchange for assisting in funding blockchain-based projects, investors get special access to products and/or services.

5. Marketing strategy

A marketing strategy is one of the most important aspects of any business, especially in the crypto world. Pay attention to sales figures, revenue, and ad effectiveness. Monitor the actions of competitors to determine whether the current marketing strategy is not copying another project’s strategy. Check Key Opinion Leaders (KOLs), marketing agencies, campaigns, marketing budget, and other important aspects.

6. Website and social media activity

One of the best things to do before investing in a crypto project is to visit its official website. It will show you at a glance what kind of investment you have on your hands. If the website looks outdated and imcompatible with mobile devices and has no clear user journey, it is better to give such a project a miss. The next thing to do is to explore social media platforms. Cryptocurrency is extremely time-sensitive, so social media is the best place to continue your research. 

Twitter 

However, Twitter is full of people with different opinions. Many passionately promote their tokens and crypto projects to increase the hype around them. That’s why it is better to look for Twitter accounts and tweets with a lot of followers and likes. Twitter is the best place to contact some of the names in the industry directly. It’s also extremely easy to search for new tweets on coins you are interested in. You just need to type the $ sign followed by the token’s abbreviation, for example, $GMPD.

Reddit

On Reddit, you can talk to crypto enthusiasts and have your questions answered in no time. You can easily find out how active the community is in forums, how many followers on the coin’s sub-Reddit, how the project interacts with the community, and if the token you’re interested in has some real potential.

Facebook

Facebook groups are a great example of how novice and experienced crypto traders and investors help each other to spot the best crypto projects. You can ask individual questions to real people, which can fast-track the learning process and help you during the DYOR process.

YouTube

There are many YouTube channels that provide a unique and time-sensitive overview of crypto projects, market movements, and what to expect in the future. If the crypto market has just experienced a huge surge or crash, a quick YouTube search will provide plenty of opinions on exactly what and why it happened.

Telegram and Discord

Telegram and Reddit can offer active chat groups with a passionate crypto community, updates, community forums, trends, and market sentiment analysis. Start by following official and active channels and groups, but don’t trust much when people are too optimistic about a crypto project. Also, beware of scams, free giveaways, and deals that sound too good to be true.

7. Uniqueness 

Every month more and more interesting IDO projects appear on the crypto market. However, hundreds of them show signs of plagiarism, fraud, and impossible returns. At GamesPad, we only prioritize projects with real value and a chance to succeed in the crypto market. Even though plagiarized projects have the ability to make a quick profit, they have no real value or use case. You can check the project’s uniqueness by reading its Whitepaper and other technical documents. By analyzing these documents, you can easily exclude duplicate and non-English papers. You can also compare reported offering dates to determine which document was published before.

8. Whitepaper

A token is only as good as the project that released it. Therefore, investing in a token based on a high-potential project is advisable. To learn more about the project behind the token, it is essential to take a close look at its Whitepaper.

The Whitepaper is an authoritative report that informs readers about a problem and how the project under consideration plans to address it. It provides details of the project, the tokens, and their distribution. 

Whitepapers are technical documents. So if there is anything you do not understand about the project, make sure to get answers from the project team. Ask even about the minor details of the project before making an investment decision.

More DYOR Tips From GamesPad

Learn more about DYOR in these bonus-tips from GamesPad:

  1. Don’t believe everything you read. Do not blindly follow any tip or prediction you see online. Unfortunately, the Internet is full with crypto trading advice which is often just hype, coin shilling and even ‘pump and dump’ fraudulent schemes.
  2. Don’t forget that DYOR is an ongoing process. You need to be patient and never rush into an investment you don’t understand. Take your time to stay up to date with things like project milestones, changes or additions to development teams, announcements and external threats from competing projects, or changes in the regulatory environment.
  3. Beware of false info, scams, and fraudsters. Don’t believe anything that sounds too good to be true. Always be on the lookout for suspicious websites, social media announcements, and information in general.
  4. Take everything into consideration. After you’ve spent some time researching the project, consider different opinions, ideas, and insights. While a few hours should be enough to give you a rough idea of what kind of investment you are considering, research is an ongoing process. If you are serious about a token and the IDO project behind it, you should stay up to date with all the news and announcements. Don’t forget that things change very quickly in a rapidly growing crypto sphere.

Wrapping up

Although cryptocurrency might seem complex and confusing, it doesn’t have to be like that. At GamesPad, we are happy to educate our community and post guides and articles on NFTs, Metaverse, GameFi, and more. If you want to start investing in the most impactful crypto gaming projects with GamesPad, check out our comprehensive tutorial!

Disclaimer. This material should not be construed as a basis for making investment decisions or as a recommendation to participate in investment transactions. Trading digital assets may involve significant risks and can result in the loss of invested capital. Therefore, you must ensure that you fully understand the risk involved, consider your level of experience, investment objectives, and seek independent financial advice if necessary.

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