With prices remaining low in this bear market, is now the time to evaluate projects?
“Be fearful when others are greedy and greedy only when others are fearful”- Warren Buffett
While Warren Buffett himself has never supported Cryptocurrencies, (in fact, quite the opposite) this quote holds true in the current bear market for Cryptocurrencies. Although many people have made losses as the price continues to dip in general, it can be argued that this is a necessary step for the industry to become healthier.
Just as bad or scam projects rose in prices together with projects with strong fundamentals, strong projects are now experiencing price drops together with those bad projects. How can you find the true gems out of all the failed or failing projects?
With many projects starting to work on their product after raising money in their ICO, the way we evaluate projects have to be different from the ICO days. Read on to find out how you can evaluate current blockchain projects.
After building the castle in the air, it is now time to build the actual base of the castle. One of the most pertinent evidence of progress are the improvements made to the product and how far the team is from achieving their final vision as set out initially.
If you are a developer or someone who knows how to code, congratulations! You can read the documentation uploaded onto GitHub by the project themselves to evaluate for yourself the progress on the technical side of the product.
For those that do not have any technical knowledge or expertise, fret not! There are still other areas you can assess for yourself.
Whitepaper - Then And Now
Did the company realize their product goals set out in the roadmap from their Whitepaper? Few if any projects have achieved every milestone within the projected time they set for themselves in the Whitepaper, due to a lack of benchmark in this nascent industry.
However, this does not absolve projects of any excuses for not showing at the very least an MVP in their 1 to 2 years of operations, or showing some developmental updates to their product. For projects that have diverged significantly from their initial vision, it is an encouraging sign if the team took the effort to communicate that to the community in clear, simple terms.
Comparison With Competitors
Very few projects are providing a one-of-a-kind product offering. Even those that claim to be differentiated from their competitors usually have similar core offerings and features to their competitors. Execution, very often, is the key to success in a startup.
Comparing the developments of a project with its competitors can be a good benchmark in terms of where the project stands in their product. It is how the comparison is done that can be tricky. You will need to rely on your own judgment in a number of instances when doing your evaluations.
For example, when it comes to evaluating Blockchain protocols, many people think of the number of transactions per second that the platform can process. However, there are other metrics of success that can be used as well, such as the number of dApps being built on the protocol and the consensus mechanism of the protocol.
Bottom line is, while it is tempting to compare projects based on the obvious metrics, it is important to use other points of comparison as well for a more holistic assessment.
Current and Future Partnerships
In this bear market, the quote “strength in numbers” is more apt than ever. With projects not wanting to allocate too much resources to paid marketing efforts, co-marketing with partners is a sensible way to spread the word with minimal resources. Another aspect to look at would be the acquisition being made by the project themselves.
An example of a successful acquisition is the acquisition of BitTorrent by TRON. Under this acquisition, the TRON based BitTorrent Token (BTT) will be integrated into the BitTorrent system, which currently has approximately 100 million users.
Another partnership is the one between ABCC Exchange and TRON. Under this partnership, ABCC Exchange becomes the first exchange to list TRC10 tokens, bringing more volume to the exchange. In addition, TRON projects receive more liquidity, creating a win-win situation for both parties.
At the end of the day, success of a project relies heavily on mass adoption. Partnerships offer a mutually beneficial solution to both parties, as the user of one company may be interested in the product offering of another company as well. Quality of partnerships are definitely a great way to evaluate a project.
Co-founders and The Team
Last but definitely not the least, the co-founders and team itself plays an even more important role in this bear market. While it was relatively easy to earn profits when interest and hype in Cryptocurrencies were at an all time high in 2017, this bear market is a true test of the belief the team has in the vision of their project.
Is the team continuing to give updates on the status of the project and any changes in the direction of the project? It is realistic of projects to adjust their direction or manage expectations of the community in this bear market, and after hitting upon unforeseen circumstances. A period of prolonged silence and a sudden dump of tokens is certainly a worrying sign.
Whereas a team that values transparency and open communication with the community is much more promising with its accountability. For example, in this bear market ABCC recently announced suspension of the release of remaining AT tokens to counter the downward pressure in the price of AT token in this bear market.
While it was not a popular move with a number of users, ABCC communicated the change to users, sharing specific details such as the new total supply of AT tokens users can expect and the number of tokens that will no longer be released. ABCC Exchange’s CEO, Calvin Cheng frequently posts video messages to the community as well, such as the most recent message regarding the new direction of ABCC Exchange.
While many are avoiding Cryptocurrencies like the plague (and to a certain extent understandably so), there are still many projects that have been making good progress despite the market. This creates an opportunity for investors who are able to discern between the good and the bad and take action in this period.
If that sounds like you, start trading on ABCC Exchange now!
Disclaimer: The following content is the view of one writer and is not representative of the views of ABCC Exchange. The content in this article is in no way an endorsement of any project or financial advice of any form. Users are reminded to carry out their own due diligence and execute trades based on their research and risk tolerance.
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