How to avoid investing on a project (Coin) that will rug pull/ rekt on the Binance smart chain network (PART 2)
Hello, once again glad to be back on this topic was again. so the last time we spoke about checking the liquidity of a project and also going further to see if liquidity is locked and for how long also. We will be focusing on something else today in continuation of this topic. We will be focusing on the two areas below:
- Checking their development team
- Checking their road map and use case
Checking their development team
In this era that we find ourselves, we are exposed to lots of info and that is essential before we consider pouring our hard-earned funds into a project. Before we commit to a project especially a new one, it is advisable that the team behind the curtain is been revealed.
The reason for this is that it firstly helps eliminate any risk of theft or any criminal mindset they might have prior to going into the project. The disclosure of the Identity of the developer helps investors feel more secure while also giving the investors what to expect from a project too.
Before I will invest in a project, I will personally want to know the team behind the project. I will then check the track record of the development team and also the marketing team. If a project does not release their development team names, this is surely a project that I will avoid and the reason is that I need to know the brain behind this project.
They are lots of developers in this crypto space that have created lots of failed projects and some are serial winners with any project they venture into. The track record will serve as a source of motivation for me and also give me an insight into what to expect from a coin due to the brain behind this project.
source
Checking their road map and use case
Even with the best team behind a project, if the coin has no real use case and a concrete road map to help carry investors along, then the project is already doomed. The road map gives you a snapshot of where the project is and what the project aims to achieve in the not-so-distant future.
While road maps are good due to the fact that it helps carry the investor along during the project journey, investors should also be careful and also critically examine the road maps of a project. Some are copied and pasted with the developers putting no effort into creating an original map of theirs. It will be scary to invest in a project of this nature.
Also, some coins could promise mouth-watering use cases but achieving those use cases may be false. This is where research and patience play a very important part and one should not be shy to ask questions when in doubt or when clarification is needed. Some coins have use cases that are either sustainable or unrealistic and that is a red flag in my books.
SO LISTEN, BEFORE YOU BUY THAT COIN
Ensure that you do your due diligence on the coin while putting everything written above into consideration. The tips are just a bedrock and other analysis could still come into play but the tips listed in this article are basic and you can not go wrong with them.
Also, when trying to invest in a coin, it is logical to search for some info that will help build your trust In that coin and one should not FOMO into buying due to the hype {It mostly ends in one making bad decisions}. Making the right decision at times requires the use of common sense and most people fail to utilize this when they want to buy coins.
Posted Using LeoFinance Beta