Entering the Blockchain Space: The First Step - Understanding a Project from Various Aspects

In recent years, the emerging features of blockchain technology have sparked a global trend, captivating the attention of individuals worldwide. The enticing potential of blockchain isn't merely altering various industries; it's also drawing a multitude of investors into the market. With the allure of surging prices, people are flocking to this realm, aiming to find success in a landscape brimming with opportunities. However, just as some reap profits, many others suffer losses due to a lack of understanding.

In this dynamic market, establishing a strong foothold necessitates continuous learning and a profound grasp of the industry's essence. This article compiles four dimensions for comprehending a project.

1.Basic Information

Understanding the fundamental information of a project begins with identifying its type and comprehending its specific purpose. Once this is established, the project can be categorized to determine whether it falls under the category of public chains, infrastructure, DeFi, NFTs, or any other type.

Categorizing the project is essential due to the different valuation methods, market sizes, research approaches, and investment logics associated with each type. For investors with a macro-level understanding of the blockchain industry, categorization aids in swift filtering.

If the project belongs to the realm of application projects, it's important to ascertain the underlying public chain it operates on. Different public chains cater to distinct user bases, funding scales, and competitive landscapes.

Furthermore, understanding the historical development of the project is vital. Investigate when the project was initiated, its development roadmap, current progress, and whether any security incidents have occurred.

2.Team Members and Social Media Presence

Reviewing the composition and individual resumes of team members is usually presented on the official website for most projects. For the majority of projects, having team members with relevant experience and a well-structured team composition undoubtedly inspires investor confidence.

The state of social media presence and community engagement is also crucial to consider. Factors such as follower count, posting frequency, readership, and content quality all provide valuable insights for users researching a project.

3.Funding Status and Economic Model

Understanding the project's funding rounds and the respective investment institutions is crucial. Generally, the more funding rounds a project has gone through, the higher its completion degree is considered. Moreover, the higher the funding amount and the caliber of participating investment institutions, the higher the project's potential future market value.

Subsequently, it's important to gather information about the token, including the total supply, circulating supply, issuance method, token distribution, token release schedule, token circulation model, and token utility. Tokens are directly linked to their prices, so comprehending these aspects is advantageous for fundamental analysis and utilizing on-chain data to analyze token circulation trends.

4.Industry Ecosystem

Understanding the project's category, whether it falls under public chains, DeFi, NFTs, or others, is essential. This can involve observing whether the project operates within a current industry hotspot. Identifying competitors within the same category and understanding the project's collaborators are also critical.

By considering these four dimensions, one can gain a relatively comprehensive understanding of a project's fundamental information. Building upon this foundation, it's crucial to continuously track project data, monitor industry trends, and cultivate a holistic perspective and values related to the blockchain space. This enables informed decision-making regarding whether to invest in a particular project and determine the appropriate investment amount.