In cryptocurrency right now, the only value investors are the Bitcoin maximalists.
That’s hyperbole, but it’s true that momentum rules this market.
“My investment thesis is very short-term for ICOs (1-12 months) and purely hype based, not merit based,” a friend told me candidly yesterday. I’ve heard similar talk from many sophisticated investors.
In a market with cynical momentum investors on one side, and dozens of new shitcoins served up weekly, it would be easy to get disillusioned. It would be easy to doubt a long-term vision in which there are thousands of cryptocurrencies, traded and valued in all corners of the globe.
That’s a vision of the future that Token Report was founded on and believes in. How to research ICOs and tokens? To sift through the tide of bullshit today, you need a good sniff test that can quickly reject the projects that lack credibility or momentum.
Here’s mine, distilled into seven questions. The first four are momentum-related, for the investor who wants a short-term buy that doesn’t insult anyone’s intelligence. If momentum is all you care about, stop there. If you’re looking for a value investment, good on you: continue to the final three. As always, this isn’t investment advice–just my opinion.
Did I miss anything that’s important to you? Let me know in the comments, or join our Telegram forum to discuss your token-picking strategy: http://t.me/tokenreport.
7 Must-Ask Questions for Crypto Investors
Update: For an example of how I apply these questions, take a look at this week’s ICO pick, Bee Token, and our analysis of /BEE.
Photo of the It’s Academic game show in 1967 via public domain.
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