BullPerks DYOR Guide: How to Analyze IDO Projects
BullPerks DYOR Guide: How to Analyze IDO Projects
21 Jun, 2022
BullPerks DYOR Guide: How to Analyze IDO Projects 2

Learn here what DYOR is, why it’s so important for novice and experienced crypto investors, as well as the main DYOR techniques you need to know to make a better-informed investment decision.

Are you a novice trader or a future crypto enthusiast? Do you have an idea about what to invest in? Are you worried about the potential threats to your crypto investment? Well, we have one answer: Do Your Own Research or, in other words, DYOR.

Doing your thorough research is very important. This step-by-step guide is intended for investors, traders and all the crypto curious — with a breakdown of all the essential things to consider. Let's dig in to find out more!

Why DYOR Is so Important

It is essential for traders and investors to clearly distinguish between a “shill” and the authentic momentum of any crypto project. Unfortunately, the so-called “shilling” is a common practice in the crypto world where fraudsters or even general people tend to advertise tokens they own in hopes of positively affecting the price. When investing in any crypto, it is advised to decide on your own, not just because someone else, even an expert or analyst, has said it is worth it.

Doing Your Own Research (DYOR) can also help potential investors navigate around Sybil attacks that have become very common on social media platforms. Users with malicious intent create multiple fake accounts and attempt to trick investors and traders into buying a token based on a popular post within a social media platform. Unfortunately, it is not always easy to spot these fake accounts. Therefore it is crucial to be cautious, remain skeptical, and do your own research.

How to Do Your Own Research (DYOR) With BullPerks

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

Team and advisors

Founders, developers, creators, and advisors are those people who work hard to launch the project and its token successfully. Being aware of them is a great way to see if a crypto project has what everything it needs to grow and develop. To define it, ask yourself the following questions:

  • Are the founders and developers famous and reputable in the industry?
  • What is their track record with other projects?
  • How responsive are the founders and the entire team to questions and requests asked by the community?
  • Is the team known publicly?
  • Do they already have real working products?
  • Do they have partnerships align with their promises?

First of all, check official social media platforms and the official website of the project as you can learn most of this information there. You can also find all the necessary information about founders and developers on their LinkedIn profiles. Furthermore, use other community forums to learn if there are more discussions about a particular project, its founders, and developers.

Don't forget to research the list of advisors. Consultants and advisors are extremely important as they open the doors for projects and help them reach new heights. Unfortunately, many scam projects falsely claim that they are backed by well-known and influential individuals in the crypto industry. Thus, they are trying to give the project more significance and interest potential crypto investors.

2. Tokenomics

Tokenomics (a combination of the words "token" and "economy") is very important, and you need to understand the unique tokenomics of a coin before you decide to invest in a particular crypto project.

Tokenomics refers to all the qualities of a token that makes it appealing to traders and potential investors. The tokenomics is usually described in the project's Whitepaper. It should help to understand the token functionality, objective, allocation policy, and more. Any factor that concerns the value of a crypto token should be taken into account when considering its tokenomics.

Some of the key things to consider when researching a crypto token:

  • Utility. Is there a utility attached to the token? Does the project's roadmap show a clear plan to achieve adoption and growth? 
  • Total Supply. Check the token distribution, unlock schedule, etc.
  • Market capitalization. It shows the entire amount of funds that have been invested in the crypto project.
  • The token’s model. Check whether it’s inflationary or deflationary.

You can find most factors that make up a crypto’s tokenomics on CoinMarketCap and CoinGecko

3. Roadmap

A roadmap is a business plan that describes short- and long-term goals of a crypto project within an estimated timeline. The roadmap that should articulate the following:

  • Goals
  • Vision
  • Mission
  • Development milestones 
  • Time estimate for achieving milestones 

While doing your own research, you should always look for a roadmap, and compare it to what has been already delivered and achieved.

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 couple of years.

4. Token utility

A potentially successful crypto project should have deflationary nature that's why you have to check its token's utility. Crypto tokens need to have actual use cases and mechanisms to burn as crypto burning helps increase the value of each remaining token. 

Unfortunately, projects that launch tokens without real usability and burn mechanisms have a little chance to become really successful. On the contrary, tokens with real use cases give their holders access to  blockchain-based products or services and are frequently used in IDOs, IGOs, and ICOs. In exchange for assisting in funding crypto startups, investors get special access to products and services.

5. Marketing strategy

Every business should have a marketing strategy. It aims to promote a company's products and services, that's why it’s a really important aspect you should consider while doing your own research.

You have to pay attention to the following:

  • Sales figures
  • Revenue
  • Advertising Effectiveness
  • Competitor analysis
  • Uniqueness
  • Key Opinion Leaders (KOLs)
  • Marketing agencies 
  • Marketing campaigns
  • Budget

6. Social media activity

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 thorough research.

Twitter. This online news and social networking site is full of crypto enthusiasts with different opinions. Many tend to promote their tokens and crypto projects to increase the hype around them. Twitter is also one of the best places to contact media personalities and crypto experts directly. Finally, it is extremely easy to search for new tweets on tokens you are interested in. You just need to type the $ sign followed by the token's abbreviation, for example, $BLP.

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 on forums, how many followers there are on the coin's sub-Reddit, and how the project interacts with the community.

Meta (Facebook). Facebook groups and communities are a great example of how crypto newbies and experienced investors help each other to spot the best crypto projects. Despite the fact that these groups have less useful content than other social networks, you can always ask your questions and get answers there, which facilitates the learning process and helps you in the DYOR process.

YouTube. There are many YouTube channels that provide a unique and time-sensitive overview of tokens, crypto projects, market movements, news, and everything that might be expected in the future. 

Telegram and Discord can help you find a lot of active crypto-dedicated public chats that provide different updates, community forums, trends, and market sentiment analysis. You can just start by following official and active channels and groups. However, don’t trust much when people are too optimistic about any token or a crypto project. Always stay cautious, beware of cryptocurrency scams, fake free giveaways, and deals that sound too good to be true.

7. Uniqueness 

The uniqueness of a crypto project is a characteristic of a particular project with unique or unsurpassed parameters that determine its originality and authenticity. It describes the absolute state of the project compared to others. 

Even though every month, more and more exciting projects appear on the crypto market, many of them have signs of plagiarism, fraud, and impossible returns. At BullPerks, we only prioritize projects with real value and a chance to succeed in the crypto market. Although plagiarized crypto projects can bring in quick profits, they have no real value and no chance to become truly successful. You can verify the project's uniqueness by reading its whitepaper and other technical documents.

8. Official website and whitepaper

Visiting the project's official website is  one of the first steps you should take. It allows you to spot all the key information about the project at a glance. You can check a website for the following features as they may show the team’s unprofessionalism:

  • Not mobile-friendly
  • Slow page load speed
  • Unclear and ineffective CTAs
  • No company blog
  • Outdated web design elements
  • Outdated content

The next thing to check is a project's whitepaper that should be easily found on the official website. It is a technical document released by developers that explains the technology and purpose of a crypto project. The whitepaper should provide all the details of the project, its token(s), and distribution. 

Since these are technical documents, they can be difficult to understand for those who are not very tech savvy. If there is anything you do not understand about the project or its native token, it is better to get answers from the project team or the project's community. You should be cautious even about the minor details of the project before making an investment decision.

More DYOR Tips From BullPerks

Learn more about Doing Your Own Research (DYOR) process in the following bonus-tips from BullPerks:

  1. Don't blindly follow tips and predictions. The internet is an incredible resource that provides easier and immediate access to information. However, it can be full of crypto trading advice which is often just hype, coin shilling, 'pump and dump' fraudulent schemes, and other potential crypto scams.
  2. Remember that DYOR is a continuous process. Researching and monitoring a cryptocurrency project is an ongoing process. Given how quickly things change in the crypto world, traders and potential investors need to be aware of project milestones, changes, and additions to development teams, announcements and external threats from competing projects, or even changes in the regulatory environment.

    If you are going to invest in a infamous project, staying up to date with news and announcements is key to understanding why a token price fluctuates and why it may rise or fall in the near future. Don't make spontaneous decisions. Take your time to research and understand everything.
  1. Beware of false info, fraud, and crypto scammers. Remember that if something seems more exciting than reasonable, it’s unlikely to be legitimate or true. You should always be on the lookout for suspicious deals, poor-looking websites, weird social media announcements, giveaways, and information in general. 
  1.  Weigh up the opinions and insights. Don't forget to take everything into consideration. After carefully studying the project and its token, you should "digest the information." Consider different opinions, ideas, and insights. Don't forget that DYOR is an ongoing process. If you are serious about investing in a crypto project, then you should stay up to date with all the news and announcements. Do not forget that things change very quickly in the fast-growing crypto sphere.

With that in mind, the BullPerks team is happy to do everything possible to educate our community and post guides and articles on exciting crypto projects. The DYOR process is definitely the right step forward for those who want to get started with crypto. Would you like to start investing in the most impactful projects with BullPerks? Learn how in this 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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