Part 2: How to evaluate a worth-investing NFT-related project through blockchain developer’s eyes
From the perspective of blockchain developers of MochiLabs, we will show you some points that you can refer to before investing your money in NFT-related projects in particular as well as other blockchain projects in general
Have your read part 1 of this topic here: https://medium.com/mochilab/tips-for-you-how-to-evaluate-a-worth-investing-nft-related-project-through-blockchain-developers-9cf07317fc66?source=collection_home---4------0-----------------------
Before approaching and learning about NFT-related projects in particular as well as crypto projects in general, you should know that the basic and public information about that project play an important role to help evaluate the professionalism and vision of the project team in the future. Let’s continue some tips in the second part of “How to evaluate worth-investing NFT projects through blockchain developer’s eyes”
1. In terms of NFT Game Projects, well-designed and unique graphics are also one of the factors that strengthens the reputation of the project. Not many people will be impressed with NFT Games with graphics that are borrowed from others or copied almost all ideas from previous projects.
2. Whether tokenomics of the design project is reasonable and whether the percentage for developers, seed or private is too much compared to other projects are also things we should get information from. If the above parameters are high, we should consider. Is token locking and vesting done in accordance with tokenomics? A lot of projects design tokenomics in one direction, but do another. Typically, the amount of token sale, the amount of adding liquidity, the token unlocking according to the schedule, or the token lock of the developer’s wallet. So the project needs to make the information public and clear, and the user also needs to verify if the information is true or false by checking on explorer pages or service lock tokens.
3. Transparency of developer’s wallets: So, do developers make team’s wallets public? Is there a situation where the team splits their money into wallets and sells them for profit? This is not easy to evaluate, but it is still possible to rely on the team’s wallet transaction history for your preliminary assessment. If the project shows signs of occasionally selling tokens to make a profit, that project is not really trustworthy.
4. Is the project source code public? Has the source code been audited by any 3rd party and how reputable that party really is. In the crypto world, there have been many hacks aimed at projects, thereby appropriating funds up to tens, hundreds of millions of dollars. Auditing is not the holy grail, but it will minimize the basic and common vulnerabilities that projects may encounter, helping to minimize risk for users.
In addition, projects also need to verify smart contracts on explorer sites (e.g. etherscan or bscscan), this ensures the project’s public source code is executed on the blockchain without adding anything just like a backdoor, for example :D
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