Now that you know the basics of crypto DYOR, there’s more than meets the eye! To improve your DYOR skill, you will have to keep researching the projects.

Remember – the best analysis comes from the segmented market. So make sure to focus on one niche first before jumping into another. Eventually, you will start noticing patterns between successful and fishy projects.

Tap into the collective mind

Don’t make this a single-player battle! You can join forces with other DYOR enthusiasts like yourself.

In our Hacken community, members discuss new approaches and share their research tools. We’ve started off as a cybersecurity community and have grown into researching projects from all sides, not just the security aspect.

Who knows, maybe one day you’ll encounter a ready-to-use shortlist from our chat!

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• NFT

• Smart Contract Security

• Interface Security

• Bug Bounty

• Insurance

• Incidents

"Smart Contract Security" refers to the solidity of the underlying smart contract code. You can check this by looking into whether the project has undergone a thorough smart contract audit by reputable firms such as:

• Quantstamp

• Trail of Bits

• OpenZeppelin

"Interface Security" is about the security of the user interface. You can assess this by checking whether the project has robust security measures to prevent phishing and other types of attacks.

"Bug Bounty" programs are offered by projects to incentivize the discovery and reporting of vulnerabilities in their systems. You can check if the project has a bug bounty program on platforms like:

• HackenProof

• Sherlock.xyz

• Code4rena

• Immunefi

"Insurance" is a protective measure that projects can implement to ensure that their users' funds are safe even if a security incident occurs. You can check if the project has insurance on their website or through their public communications.

"Incidents" refer to past security breaches or vulnerabilities that were exploited. These incidents can be found through:

• Rekt News

• Defi Prime Post Mortems

A comprehensive understanding of these aspects can provide valuable insights into the project's commitment to security, helping you make informed decisions.

🔒 Unlock the rest of the project analysis

• 🔒 How to Check Legal Risks in Crypto Projects

• 🔒 How to Check Team, Partners, and Investors

• 🔒 How to Check the Development Progress of a Crypto Project

• 🔒 How to Check Partnerships and Integrations of a Crypto Project

>Unlock access to the extra articles by completing the staking quest

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When researching community opportunities and risks related to a crypto project, it's important to consider the following key factors:

• Positive Sentiment

• Mention Share across the Category and the Positive Mention Share

• Community Influence on Total Supply

"Positive Sentiment" refers to the overall positive perception or feeling of the community towards the crypto project. This sentiment can be gauged through social listening on crypto-focused platforms and discussion forums such as:

• Twitter

• Reddit

• Telegram

• Discord

"Mention Share across the Category and the Positive Mention Share" indicates the proportion of discussion about the project in comparison to other projects in the same category, and how much of that discussion is positive. This can be evaluated using social listening tools or specific analytic platforms like:

• LunarCrush

• The TIE

"Community Influence on Total Supply" is about understanding how much power the community holds over the token's total supply. This can be due to mechanisms like staking or burning, where token holders have a direct impact on the supply. For this, you might need to dig into the project's whitepaper, blockchain explorers like Etherscan, and community discussions on the aforementioned platforms.

How to research community growth and engagement

Community growth and engagement are important aspects of a crypto project's long-term success. Here are some factors to consider when researching:

• Growth Rate of New Subscribers on Social Channels

• Sentiment Share Inside the Community

• Count of Influencers Subscribed to the Social Channels

"Growth Rate of New Subscribers on Social Channels" is an indicator of the project's increasing popularity and acceptance. Keep track of the project's social media platforms to observe the rate at which new followers are joining. You can use the following platforms:

• Twitter

• Reddit

• Telegram

• Discord

"Sentiment Share Inside the Community" refers to the proportion of positive, negative, and neutral sentiments expressed by community members. This can be gauged by analyzing the nature and tone of discussions happening in community forums. Tools for sentiment analysis can include:

• LunarCrush

• The TIE

"Count of Influencers Subscribed to the Social Channels" indicates the number of influencers or notable figures who are following and potentially interacting with the project's social channels. Influencers can significantly impact the project's popularity and acceptance. The aforementioned social media platforms can provide insights into this aspect.

How to research DAO performance

The performance of a Decentralized Autonomous Organization (DAO) plays a crucial role in the success and failure of a crypto project. Here are some key factors to consider:

• Proposals Count

• DAO Rules

"Proposals Count" refers to the number of proposals that have been submitted to the DAO for consideration. This number can serve as an indicator of the active participation of the community in the project's governance. More proposals typically mean more involvement and interest from the community members. Some DAO platforms where you can check this include:

• Aragon

• DAOstack

• MolochDAO

"DAO Rules" are the guidelines that govern how the DAO operates, including how decisions are made, how funds are distributed, and what happens if a proposal is accepted or rejected. These rules provide insights into the level of decentralization and the fairness of the project. Understanding these rules can help you assess if the DAO aligns with your investment or participation philosophy.

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How to Check Crypto Project Security

3 factors to watch out for:

• Keeping up with Tokenomics Promises

• Market Performance Acceleration

• Whale Holders

"Keeping up with Tokenomics Promises" is the aspect of how faithfully a project adheres to its outlined tokenomic principles. A tokenomics review should consider the supply distribution, inflation/deflation mechanisms, token utility, and more. A significant discrepancy between promised and actual tokenomics can signal possible risks. You can analyze the project's progress in keeping its tokenomics promises on:

• https://coinmarketcap.com

• https://www.coingecko.com

• https://etherscan.io

• Project's official documentation and announcements

"Market Performance Acceleration" refers to the rate at which the token's market performance is improving over time. Rapid growth might indicate a promising opportunity, but it's essential to balance this against other market factors and trends. These services provide data on token market performance:

• https://coinmarketcap.com

• https://www.coingecko.com

• https://cryptocompare.com

"Whale Holders" signifies the presence of large token holders. While having 'whale' investors can indicate confidence in a project, it can also lead to market manipulation risks. A balanced distribution of tokens among holders is generally a good sign. Data on token holders can be found on:

• https://etherscan.io

• https://bscscan.com

• https://tronscan.org

• https://polygonscan.com

How to research tokenomics potential

You'll want to explore 3 key aspects:

• Token Utility

• Inflationary Mechanics

• Deflationary Mechanics

"Token Utility" involves understanding the specific roles a token plays within its ecosystem. This could include being a governance token, providing access to certain services, or entitling holders to revenue shares. For a token to hold value, it needs to have a distinct utility. Review the project's whitepaper and official documentation to assess token utility. Useful resources for this include:

• Project's official website and whitepaper

• Blogs and articles about the project

• Discussions on crypto forums like Reddit and Bitcointalk

"Inflationary Mechanics" refers to the rate at which new tokens are added into the circulation. High inflation can dilute token value, while moderate inflation can incentivize network participation. Understand the project's inflationary mechanisms by using these resources:

• Project's whitepaper and tokenomics documents

• Etherscan or other blockchain explorers for supply data

• Discussion forums and crypto analytics platforms

"Deflationary Mechanics" is the converse, the measures a project takes to reduce the token supply. This could be through mechanisms like token burns or buybacks. Deflationary measures can increase scarcity and potentially drive up token value. Research the deflationary mechanisms of a project through:

• Project's official documentation and tokenomics breakdown

• Coinmarketcap and Coingecko for burn events and supply data

• Crypto news portals and project announcement channels for buyback events

By thoroughly researching these three aspects, you can gain a clearer view of a project's tokenomics potential.

How to research tokenomics performance

To effectively examine a crypto project's tokenomics performance, you'll want to pay attention to these three critical areas:

• Actual Demand for Utility Cases

• Emission

• Vesting

"Actual Demand for Utility Cases" assesses whether the token is being used for its intended purposes in the real world. High demand suggests strong token utility and value. Some of the platforms where you can check for actual usage include:

• Etherscan

• Dune Analytics

• DeFi Pulse

• Glassnode

"Emission" relates to the rate at which new tokens are introduced into circulation. A high emission rate can lead to inflation and token value dilution. Therefore, understanding the emission rate of a token is essential. Sources to research token emission include:

• Etherscan or other blockchain explorers for supply data

• The project's official documentation

• Community forums and project update channels

"Vesting" refers to the process in which the team or early investors receive their tokens over time. It's important to understand a project's vesting schedule as sudden large token releases can impact token price. Places to check for vesting schedules and releases include:

• The project's official whitepaper and documentation

• Announcements on official project channels

• Etherscan for tracking transactions from project wallets

How to research token performance

Some of these factors you’re already familiar with:

• Price

• Market Cap

• Fully Diluted Market Cap

• Token TVL

• Total Supply

• Trading Volume

• Supply Split among DeFi, Vesting, Distributor, CEX, Bridge, Staking, Treasury

• Token Allocation

"Price" refers to the current trading price of the token. You can observe the price action on various platforms such as:

• CoinGecko

• CoinMarketCap

• CryptoCompare

"Market Cap" is the total value of the circulating supply of the token. This data is also available on the aforementioned platforms.

"Fully Diluted Market Cap" considers the maximum potential supply of the token, including any tokens not yet in circulation. It provides an understanding of the project's value if all tokens were available.

"Token TVL" (Total Value Locked) measures the value of tokens locked in a protocol, giving an insight into the platform's popularity and utility. Check out:

• DeFi Pulse

• Dune Analytics

"Total Supply" reveals the number of tokens in existence. This can be found via:

• Etherscan

• CoinGecko

• CoinMarketCap

"Trading Volume" represents how many tokens are traded within a specific timeframe, reflecting the token's liquidity and popularity. Trading volume can be analyzed via the first three links provided.

"Supply Split among DeFi, Vesting, Distributor, CEX, Bridge, Staking, Treasury" refers to the distribution of the tokens across different sectors. Tracking these specific allocations may require more in-depth research, often involving a combination of sources such as Etherscan, project documentation, and community channels.

"Token Allocation" pertains to how tokens are divided among stakeholders such as the team, investors, and community. This information can usually be found in the project's whitepaper or official documentation.

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How to Check Community & DAO

Product potential can be analyzed with 3 key factors:

• value proposition

• competitive advantage

• business model

For value proposition, try to understand what’s the key feature that provides the most value to users.

For competitive advantage, find the differences in similar products. This can be the novelty of an idea or a cheaper price.

For business model, research how the project is monetized, how do the revenue streams work. If this is not a public information, ask their community about it.

How to research product usage

Product usage can be analyzed with 5 key factors:

• brand demand

• trading volume

• total value locked

• token price

• unique active wallets

To research brand demand, you will need access to SEO tools like Ahrefs. The idea is to research product name as a keyword. High search volume per month indicates a top of the funnel demand.

To research trading volume and price you can use these services:

• https://www.coingecko.com

• https://defipulse.com/ (good for TVL too)

• https://coinmarketcap.com

• https://www.cryptocompare.com

Data on unique active wallets is harder to come by, use these services:

• https://etherscan.io

• https://glassnode.com

• https://dune.com/

How to research product monetization

Product monetization can be broken down into 4 key factors:

• Fees

• Revenue

• Treasury

• Price

To research fees, you should look into the blockchain transactions of the specific project. The charges applied for each transaction, whether in swapping, staking, or any other interaction with the blockchain, are a good indicator of how the project generates fees. Resources like https://etherscan.io provide insights into such transactions and the associated fees.

Revenue is a clear indicator of a project's financial health. This can be explored by understanding the project’s business model and how it earns income. This may be from transaction fees, services, or even yield farming rewards. Comprehensive details can often be found in the project's whitepaper, and aggregators like https://www.coingecko.com and https://defipulse.com often provide snapshots of revenue streams.

Treasury management is crucial in a crypto project's sustainability and growth. The treasury's size and management can be investigated through on-chain data and governance proposals. Services like https://deepdao.io and https://etherscan.io/ can provide a window into a project's treasury.

Finally, price is an important but volatile metric. It should be analyzed in relation to the other factors mentioned to get a comprehensive view of the project's financial health. Crypto price tracking platforms like https://coinmarketcap.com and https://www.coingecko.com/ are great places to get accurate and up-to-date price data.

How to research product roadmap

Examining a crypto project's roadmap can be boiled down to 4 key elements:

• Clarity of Goals

• Milestone Achievements

• Timeline

• Technical Feasibility

To assess the clarity of goals, you need to dive deep into the project's whitepaper and official announcements. A clear, precise roadmap will include specific objectives and development plans. If these are vague or too broad, it could be a warning sign.

The milestone achievements refer to the completed objectives set out in the roadmap. It's essential to verify whether the team has successfully met their milestones. Websites like https://coinmarketcal.com/ and https://coincheckup.com/ can be handy in tracking these milestones.

Timeliness is crucial in a roadmap. Projects that consistently meet their deadlines reflect positively on the project's reliability. Again, using platforms like CoinMarketCal will help track whether a project is meeting its deadlines.

Analyzing technical feasibility involves some technical knowledge. It's crucial to ensure that the goals set out in the roadmap are technically possible within the stated timelines. Technical discussions on platforms like https://github.com/ and Bitbucket https://bitbucket.org/ can provide some insights into this aspect.

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How to Check Tokenomics Health

Understanding the pulse of the market is the first step towards identifying promising crypto projects. This involves staying updated with the market trends. One such significant trend to keep an eye on is the overall market sentiment. Positive sentiment is often a sign of a bullish market.

Consider the end of 2017, when the crypto market saw an influx of retail investors. This rush was driven by positive sentiment, pushing the prices of various tokens to new highs.

However, it's crucial to be aware that market sentiment can sometimes be misleading. During the euphoria phase of a market cycle, extreme optimism can lead to inflated asset prices. This was evident during the ICO boom of 2017-2018, where despite the overwhelmingly positive market sentiment, many projects failed to deliver, leading to losses for investors.

The second crucial trend indicator is the Bitcoin dominance index. A high Bitcoin dominance often points to a risk-off environment in the altcoin market. This is because during times of market uncertainty, investors tend to move their funds from altcoins to Bitcoin, leading to an increased Bitcoin dominance.

For instance, during periods of market uncertainty or bearish trends, investors often shift their funds from altcoins to Bitcoin. This shift results in increased Bitcoin dominance.

However, a high Bitcoin dominance doesn't always mean that altcoins are a bad investment. During the "alt season" of early 2021, Bitcoin dominance fell drastically as altcoins soared in value. Investors who solely relied on Bitcoin dominance as an indicator would have missed out on significant returns offered by the altcoin market.

Looking up Projects

When you've identified potential market opportunities, the next step is to investigate specific projects. Here are some resources you can start off with:

• https://www.coingecko.com

• https://coinmarketcap.com

• https://www.cryptocompare.com

Inside these project directories, you have to look for category pages like:

• cybersecurity projects

• meme tokens

• AI tokens

The idea is to narrow down into a specific submarket within all crypto projects. Once you’ve decided which market to research more thorough, you can start comparing project properties:

• market capitalization

• trading volume

• price performance

• community

Feel free to note down your shortlist in a spreadsheets or notes. Our top pick goes to:

• Notion

• Obsidian

🔒 How to use the CAPED framework for surface DYOR

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Scams and fraud have found a way to seep into the crypto market, preying on the excitement of investors and exploiting the Fear of Missing Out (FOMO).

One example of such a scam is the Ponzi scheme BitConnect, which promised high daily returns and lured unsuspecting investors into a trap. When BitConnect collapsed in 2018, those who had bought in were left with massive losses.

On the other hand, legitimate projects like Ethereum focus on creating real value. They have transparent, open-source blockchains and committed teams, providing a solid foundation for investors to trust.

Another fraudulent method found in the crypto world is phishing scams. These scams often disguise as trustworthy entities to trick you into revealing sensitive information.

A prime example of a phishing scam is the notorious Twitter Bitcoin scam of 2020. High-profile Twitter accounts were targeted to promote a Bitcoin scam, leaving many victims in its wake.

In contrast, genuine projects like Cardano prioritize transparency and peer-reviewed research. These qualities demonstrate the ethos of a trustworthy crypto project and provide investors with the confidence they need to invest.

Market Volatility

The crypto market is infamous for its extreme volatility, with prices shifting significantly within hours and catching investors off guard.

One example of this is Bitcoin's value soaring from around $5,000 to over $60,000 within a year, only to recede to around $30,000 in the following months.

Traditional markets like the stock market have measures to limit extreme fluctuations. With a disciplined investment strategy, investors can better navigate market volatility.

Market volatility isn't always negative; it can also present opportunities for high returns.

Those who purchased Bitcoin during its low in March 2020 and held on could have enjoyed significant gains by the end of the year. However, such opportunities require keen market understanding, patience, and a pinch of luck.

A cautious approach is often the best strategy, as market manipulation can contribute to the crypto market's volatility. Pump-and-dump schemes artificially inflate an asset's price, only to sell off at a higher price, leaving unsuspecting investors with losses.

Well-established cryptocurrencies like Bitcoin and Ethereum have more liquidity and market depth, making them less susceptible to market manipulation.

Rug Pulls and Exit Scams

Rug pulls and exit scams are prominent risks in the crypto market. They occur when developers abandon a project after raising funds, causing the associated cryptocurrency's value to drop sharply.

SushiSwap is a prime example of such a situation. The project's anonymous creator sold off a significant portion of their tokens, which sent the price into a tailspin.

However, conducting thorough due diligence can help you steer clear of such risks. Before investing, it's essential to scrutinize the project's team, its code, and overall credibility.

Rug pulls and exit scams are often confused, but there are subtle differences between them. A rug pull is a more specific form of exit scam, wherein the liquidity is removed from a decentralized exchange, making it impossible for investors to sell their tokens.

In contrast, exit scams encompass a broader range of fraudulent activities, including when developers simply abandon the project after raising funds.

Understanding the project's roadmap and the team's past accomplishments can provide valuable insights. An important point to remember is that anonymity isn't always a sign of ill intent.

Bitcoin, the pioneer of cryptocurrencies, was created by the still anonymous entity, Satoshi Nakamoto. Despite this, Bitcoin has proven its resilience and legitimacy over time.

Regulatory Challenges

Regulatory challenges pose a significant risk in the crypto market. The decentralized nature of cryptocurrencies is often at odds with traditional financial regulations, causing uncertainty and volatility.

For instance, various jurisdictions have different views on cryptocurrencies. Some countries like Japan and Switzerland have embraced them, while others like China and India have imposed stringent regulations or outright bans.

However, regulatory hurdles are not necessarily a death sentence for crypto projects. Some blockchain projects, such as Ripple, are actively working with regulators to ensure compliance and foster innovation.

Another major regulatory challenge in the crypto market is the possibility of securities regulations being applied to Initial Coin Offerings (ICOs) and token sales. This adds a layer of complexity and uncertainty for both project developers and investors.

A case in point is the SEC's lawsuit against Ripple Labs, alleging that its XRP token is a security and was sold illegally. This caused significant shockwaves in the crypto market and led to a steep drop in XRP's price.

On the other hand, Ethereum's ICO in 2014 was a game-changer for the crypto space, ushering in the era of ICOs. Ethereum has since been confirmed by the SEC not to be a security, paving the way for other projects to follow its path.

Lastly, the lack of a global regulatory framework for cryptocurrencies is a major challenge. This leads to a fragmented regulatory landscape, making it difficult for crypto businesses to operate across borders.

For example, Binance, one of the largest crypto exchanges in the world, has faced regulatory scrutiny in several countries, causing disruptions to its operations.

However, some crypto projects are proactively seeking regulatory clarity. They collaborate with regulators and lawmakers to contribute to the formulation of fair and comprehensive regulations. One such project is the Digital Chamber of Commerce, which advocates for blockchain technology at the policy level.

>Start your DYOR Quest here

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How to Identify Worthy Crypto Projects

The world of cryptocurrency is bursting with opportunities. The total market capitalization of all cryptocurrencies has surpassed $1 trillion. This figure is likely much higher now, showing the immense growth and potential of the industry.

The market isn't just about Bitcoin or Ethereum; it's teeming with various projects. From Decentralized Exchanges (DEXs), wallets, and blockchain games, to novel DeFi protocols and NFT platforms, there's a vast landscape to explore.

For traders who've had a rough ride, this diversity presents a second chance. Instead of focusing on a few high-profile cryptos, why not delve into the broader market?

There are countless lesser-known projects with solid fundamentals, impressive tech, and promising futures. These projects offer the potential for significant returns, but they also come with risks. To navigate these risks and identify the best opportunities, you need a comprehensive approach: Doing Your Own Research (DYOR).

The Importance of DYOR

In the fast-paced, high-risk world of crypto, Doing Your Own Research (DYOR) isn't just a mantra, it's a necessity. While expert insights and community sentiment can be helpful, nothing beats firsthand knowledge. By researching and understanding the projects you invest in, you'll be better equipped to make informed decisions and weather the market's storms.

Over the course of this article series, we'll guide you through the ins and outs of DYOR. Upon completing the course, you’ll be able to complete our quest on Zealy.

And if you complete all of our DYOR quests, you’ll be able to get cool rewards: - Mystery drop - 50% discount on membership - DYOR NFTs

Follow this checklist to become the DYOR expert:

• Learn about DYOR opportunities (you are here)

• Become aware of DYOR challenges

• Identify worthy crypto projects

• Check Product Health

• Check Tokenomics Health

• Check Community & DAO

• Check Security

• Check Legal Risks

• Check Team, Partners & Investors

• Check Development Progress

• Become the DYOR champion