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How should newcomers do project research?

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This article shares 6 perspectives for newcomers to do project research.

Original author: BITWU.ETH

Editor's note: For newcomers to the cryptocurrency industry, it can be a daunting task to determine whether a project is worth investing in and at what point to enter. Cryptocurrency blogger BITWU.ETH shared his reference advice on how newcomers can conduct project research on X, and BlockBeats has compiled the full text below:

[Newcomers must-read | How to conduct project research?]

Many newcomers in the industry don't know how to evaluate projects and always ask what positions they should buy. If you really want to #DYOR, I suggest starting with these six aspects.

Run through this model once and combine it with your own understanding, and the basic screening will be completed. For reference only!

One, Project Agreement Itself (Fundamentals)

1, why does it exist and what problem is it trying to solve?

2, what is the market size and where are the landing scenarios?

3. What are the advantages and weaknesses compared to similar competitors?

4, Is the on-chain interaction smooth?

5, how is the execution of the project's roadmap so far?

6, Daily Active User Growth

二、创始团队（一定程度上决定项目质量和延续性）

Translation:

2. Founding Team (to a certain extent determines project quality and continuity)

1, team's resume and past experience

2, Who are the early investors? Have they received well-known seed investments?

3, which projects are partners? (23 is very important, make good use of the screening mechanism of VCs)

Three, Financial Indicators (Survival and Expansion Require Revenue)

1，TVL

2, Trading Volume

3, Revenue and Profit

4, composition of reserve funds, do not have too many of their own tokens.

5, are there any short-term airdrops, competitions, tasks or other incentive plans?

You can find all of these information on the dashboards of Dune, Token Terminal, and DeFiLlama.

https://dune.com/browse/dashboards

https://tokenterminal.com

https://defillama.com

Four, Token Economic Model (Crucial)

1. Token Supply: Supply, Circulation, Current Market Value, Fully Diluted Market Value, Destruction Mechanism.

2. Token Utility: How gas consumption works, whether there is value accumulation through staking and voting.

3, Token Distribution: What is the method of release - pre-mining or fair distribution? What is the allocation ratio, lock-up period, and release time?