The cryptocurrency market Bitcoin is down over 70% from its all-time high and most altcoins have fared even worse. However, bear markets also present opportunities for investing in promising new projects to gain mainstream traction. One way to invest early in cryptocurrency projects is through a token presale. Token presale investors to buy tokens directly from the project team the token is listed on exchanges. Presale tokens are usually offered at a discounted rate compared to the planned initial exchange listing price.
Examine the project team and advisory board
The team behind a cryptocurrency project is key – they are the ones building the product and driving adoption. When vetting a token presale, look into the background of the founders and developers. Do they have experience launching successful crypto projects in the past? How committed are they to the long-term success of this project? The advisory board lends credibility. Seasoned advisors with blockchain expertise the project and use their influence to attract investors. Look for advisors who are actively involved rather than just lending their name for publicity.
Review the project roadmap
The project roadmap outlines the development timeline and key milestones on the horizon. A detailed roadmap shows that the team has thoroughly considered the necessary steps to building out the platform. Importantly, the roadmap should extend beyond the presale and launch. This shows the team is committed to continuing development and not just trying to raise funds quickly. Evaluate if the roadmap milestones are realistic and achievable based on the team’s capabilities. Minor delays are understandable but large discrepancies between the roadmap and actual progress are a red flag.
Assess the use case for the token
how to buy RETIK tokens? Tokens should have a clearly defined use case within the project’s ecosystem. Utility tokens allow access to platform features or provide governance rights to token holders. Asset-backed tokens may give holders ownership or dividends from underlying assets. In a presale, investors should fully understand the utility behind the tokens they are buying. The tokenomics model should also make sense. Is the initial supply and distribution fair? Does the token have a viable value capture model as adoption grows? Be wary of tokens with overly inflated supplies and no clear path to sustained demand.
Research the market opportunity
What real-world problem is the project trying to solve? Who are the target users and how much market demand exists? A project entering an oversaturated market with little room for growth is far less attractive than one addressing an unmet market need. The product or service should be vetted to determine if it has a competitive edge over existing solutions. Investing in a “me-too” project with minimal differentiation is unlikely to generate good returns in the long run.
Gauge present and expected trading volume
Investors hope to buy tokens cheaply before strong trading volume and demand drives up the token price. Examine the enthusiasm level around the project based on social media and community engagement. A vibrant, growing community indicates underlying interest that could translate to higher trading volume. Also, research the exchange listing plan. Better liquidity on major exchanges generally equates to higher trading volume some things to consider – which exchanges will list the token initially? Does the project have exchange partnerships secured? What are the expected listing dates?