Sunday May 26, 2024

6 factors that will help assess the reliability of a crypto project

Have you noticed an interesting crypto project, but are you wondering how safe it is to invest money in it? Analyzing crypto projects for investment purposes is a real skill that can be compared to fundamental and technical analysis of the stock market.

The cryptocurrency industry has existed for more than a decade, but remains largely unregulated: fraudulent schemes continue to flourish in it. Therefore, you should not rush to invest in a new project, no matter how attractive it seems. Instead, try to determine its prospects using these six factors.

Media coverage

Evaluate the quality of mentions of the project in the media. Suspicious startups, as a rule, appear in as many publications as possible in order to gain the trust of the audience. This is the result of marketing efforts, which nevertheless can be regarded as a good sign.

To check this, study the publications listed on the project’s website. Companies often turn to PR agencies that add backlinks to the new crypto project and brief mentions of it to news articles. This suggests that its developers are trying to create an artificial hype.

In turn, an interesting project naturally attracts the attention of the media. If dozens of publications publish the same material, it is most likely paid content.

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