Methodology

Evaluating The Cryptocurrency

We start with the project’s narratives and basic outlook. Next, we take a look at development stories, and the general market outlook as it concerns the project and its sector. We then evaluate growing sectors and how they influence the projects involved. For the project we end up writing about, we also consider their alignment with these parameters and the overall outlook.

Evaluating The Whitepaper

A project's whitepaper details the core idea, technology, and grand design. This is a handy tool for our review team when assessing the project’s fundamentals. However, they often are hundreds of pages long and most of our readers don’t have the time to read them. So we review the project’s whitepaper for genuineness, the feasibility of key ideas and technology, and how they align with current events around the project.

For existing projects, we consider the current progress and how they tally with the whitepaper information and also derive insights into the future of the project. For new projects, we primarily consider how feasible and relevant these ideas are.

Tokenomics And Governance

For the tokenomics, we review the supply and distribution of the native token of the project. A project’s tokenomics structure gives insight into the supply schedules and how the token is integrated into the project’s operation. For the supply and distribution, we estimate how the current distribution and emission structure will affect the value of the project. We use Market Cap and FDV in synergy with an estimate of the token’s demand to evaluate the substance of the tokenomics.

DAOs are a growing governance concept, and this provides an inherent use case for the project’s token. While we admit that this is a good utility for a project’s token, we will also dig deeper into the governance structure of the DAO and how it contributes to tokenomics.

Utility And Features

Utility drives value. Even with a good token supply and distribution structure, a crypto asset will perform poorly if it has no salient use. As part of our review process, we use a score-based system to measure the relevance of a project’s use case. We consider the market for these use cases and the facility in place to connect the project to a significant portion of the current and future market.

Technical Analysis

For our technical analysis, we review the price development history and market strength using reliable tools and indicators. We adjust our estimations for real-life events and uncertainties with the help of our experienced in-house analysts. This enables us to estimate future price developments. We also review on-chain metrics like changes in the number of holders and the daily movement.

Availability, Liquidity, And Trading Volume

We estimate the availability and market viability of the reviewed project. A viable crypto asset should be easily tradable. This is only possible if it is listed on a reliable centralized exchange or with sufficient liquidity on decentralized exchanges. We assess the liquidity condition primarily to ensure that investors can trade the asset with no or minimal slippages. We also look at the (genuine) trading volume at certain time ranges to verify that the asset is actively traded without market manipulations.

Compliance And Legal Aspects

Legal provisions vary across regions, especially for crypto projects. However, we review the project's compliance with basic legal provisions. This factor also contributes to our reputation rating for projects. We assess the legal records of reviewed projects and also the past brushes with the law, if any.

Security

We are serious about protecting investors who make use of our resources. In line with this, we strive to ensure that we are clear about the security scenario for each crypto project. We assess the administrational practices, especially where it concerns financial management. We provide security precautions where needed, following a careful review of the project security practices.

Team Behind The Project

We start with checking the background of the core team members. We take a look at previous engagement and their performance in each case. We also assess their contribution to the project and their ability to perform at a high level.

Development Activity (Analyzing the GitHub Progress, etc)

Using data like GitHub commits and the relevance of new deployments, we appraise the development activity of the reviewed projects. This is a major parameter for blue chip projects whose fundamentals are based on advancing technology. We gauge developer commitment and pull several data related to this to ensure that the project is actively and genuinely being worked on.

Community Around The Project - Social Media Presence, Etc

Community is the lifeblood of any project. We understand the role a dedicated community plays in a project and consider this a part of our review process. For community-led projects, this is even more relevant. We estimate the size of a project’s community as a metric for the positive interest it has garnered. We also review the community growth pattern as a measure of the project’s progression.

Partnerships

Project partnerships are also an extension of the team, as they increase the resources available to a project and could be a major decider in some cases. Therefore, we take a look at other projects the reviewed project is partnered with and the relevance of the partnership to the project. We also assess the genuineness of the said partnership.

Past And Future Performance

Using the current performance of the asset and the build-up to the current stage, we gauge a project’s performance in the future. In terms of price, we track the price development records and estimate the chances of continuous growth or price recovery.

Long-term Viability

To estimate the viability of a project in the long term, we study the economic model, roadmap, and plans for alternating conditions. We review the financial structure, spending practices, and how this affects the project’s finances in the future. While the future is filled with uncertainties, a project with a future-proof financial plan is more likely to continue growing. We also study the project’s roadmap for insights into planned development and expansion.

Sources: We use reputable sources, including official websites of the projects, whitepapers, blockchain explorers, regulatory reports, and large exchanges.

APIs and Tools: APIs are often used to retrieve real-time data from platforms such as CoinGecko, CoinMarketCap, Glassnode, or TradingView.

Manual Research: In the case of qualitative research, including team evaluations, use cases, or tokenomics, our analysts complete manual research, interviews, and examine project documentation.

Neutrality: We want to feature all the facts with no bias and exaggerations. Opinion items will carry the title Opinion.

Updates: The information is assessed and revised regularly to stay in line with the changes in the crypto market.

Authentication (20%)

This type looks at the extent to which the platform or the product is safe and secure in regards to authentication of users and the protection of their information.

User Interface (20%)

This criterion corresponds to what is aesthetically pleasing and easy to follow and understand the product/platform design and navigation.

Quality of Relevant Tools or Assets (20%)

This can be defined as the extent to which the tools, features, or the assets that are offered on the platform are effective, reliable, and valuable in resolving actual problems of the user or being helpful.

User Experience & Reviews (20%)

This group is founded on real user reviews, and overall intuitive usage. It incorporates satisfaction, complaints, learning curve and the reported problems.

Social Engagement (20%)

This determines the level of social activity in the brand or platform communication with the audience both using the platforms of the social dimension (e.g., Discord, Telegram, Twitter).

Final Rating Calculation

Once you have the scores received on different categories, you can combine (or average) them to give the final star rating of an item.

Example:

• Authentication: ⭐⭐⭐⭐ (4)
• User Interface: ⭐⭐⭐⭐ (4)
• Tools/Assets: ⭐⭐⭐⭐ (4)
• User Experience: ⭐⭐⭐ (3)
• Social Engagement: ⭐⭐⭐⭐ (4)

Final Score: (4+4+4+3+4)/5 = 3.8 = ⭐⭐⭐⭐

Investment Disclosures: The investments in Cryptocurrency are quite volatile and risky. We add the disclaimer to make users understand that not all the content on our site is advice of any sort relating to finance, and a user should do the research themselves.