

Where is the value of altcoins reflected? Five dimensions that must be understood before investing
Jul 22, 2025 pm 08:45 PMEvaluation criteria for new altcoin projects_How to judge project potential?
1. Team background and qualifications
- Core member experience: Does the team have experience in blockchain technology development, market operation and other related experience, and whether it has a successful project background.
- Community activity: Whether the team actively interacts with the community, how transparent it is, whether there is a public roadmap and development plan.
- Partner: Whether the project has received support from well-known institutions or investors, and whether the cooperation resources are abundant.
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Binance
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Ouyi OKX ?
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Huobi Huobi?
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2. Technological innovation and application scenarios
- Technical breakthrough: Whether you have unique underlying technologies, consensus algorithms or expansion solutions, and whether you can solve the existing blockchain pain points.
- Practical application: Whether the project's token has practical value in specific scenarios, such as payment, governance, DeFi, NFT, etc.
- Code open source and audit: Whether the code base is public, whether there is a third-party security audit report, to ensure the project is safe and trustworthy.
3. Token Economic Model
- Rationality of token allocation: Whether the ratio of holdings to the coins in teams, investors, communities, etc. is balanced to avoid excessive concentration.
- Issuance mechanism: Whether there is a clear release plan, and whether a reasonable mechanism is designed to incentivize miners or coin holders.
- Deflation and incentives: Whether there is a combustion mechanism or pledge reward to promote the long-term value growth of tokens.
4. Market performance and liquidity
- Exchange launch status: Whether it has been launched on multiple mainstream exchanges to ensure liquidity and convenient trading.
- Trading volume and coin holding distribution: Whether there is active trading volume and scattered coin holding address to avoid single point risk.
- Community promotion intensity: Whether the project has effective marketing and user growth strategies to expand its user base.
5. Compliance and risk management
- Compliance review: Whether it complies with the laws and regulations of the country or region and avoids legal risks.
- Transparent governance: Whether there is a community governance mechanism, and project decisions are open and transparent.
- Security: Prevent smart contract vulnerabilities and malicious attacks, and ensure the security of user assets.
6. Summary
To judge the potential of altcoin new projects, we need to comprehensively examine team strength, technological innovation, token economy, market performance and compliance risks. Investors should analyze rationally based on project white paper, on-chain data and market trends to avoid blindly following the trend. Building a scientific evaluation framework will help discover high-quality projects that truly have long-term value.
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