How do you evaluate an encryption project

Over the past eight years, according to Coinopsy.com, more than 1,500 cryptocurrencies have faded from view and collapsed in price. With so many failures, what is the best way to determine which projects are worth investing in? How to find these items?

Civic CEO Vinny Lingham and Multicoin Capital co-founder Kyle Samani explained at an event how they look for and evaluate cryptographic investment opportunities.

Search for crypto startups

At the beginning of every investment decision, you are looking for the right investment. It is well known that the encryption market is full of scams and fraudulent projects. Finding a legitimate startup is often a daunting task. For Samani, co-founder of Multicoin Capital, deliberation and research are the driving forces behind successful searches. "We [the Multicoin team] have been reading, thinking and learning," he said. Once in a while we would communicate internally, and we would say, hey, this is a great opportunity. Let's go find the team. When this happens, we usually start doing it systematically, like calling everyone we know. This is an area where you indirectly observe all the companies, and then try to find the right ones to really express the point that you're making. "

Assess the value of the project

1. Founder and team ability

2. Market conditions

Once a group of companies has been identified, what is the best way to evaluate them? The chief executive of Civic Lingham think should start from the root: "my personal view is that, I pay close attention to the founder, team, and they had done. They have to show passion and professional skills. So it's all about team. Whether they are cohesive? Can they survive? They can continue to fight for survival? Once these obstacles are cleared, well, the team wanted to solve the problem of what? I believe they have enough background and professional technology to do it? I often find some teams have passion, but there is no technical expertise."

"We're very, very focused on the market," he said. "we really understand the size of the market, we understand the players that are out there, we build the foundation and we try to stay relevant."

But Samani also understands the importance of market conditions and a team driven by passion. "The more time I spend investing, the more I value the importance of founders adapting to the market, because it's really hard to be a founder." Like, if you don't have the right story and context to explain why you're doing what you're doing, you'll eventually give up.

The original address: https://cointelegraph.com/news/

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia