Tokenomics: To Buy Or Not To Buy
Tokenomics is one of the most effective methods for analyzing cryptocurrency. In this article, we will talk about five main questions for token analysis and the documents that must be studied before investing in a crypto project.
Investing in cryptocurrency, especially when it has just entered the market, carries risks. About 80% of crypto projects can turn out to be scams at the ICO stage (according to this study).
It is a fundamental analysis tool that gives an understanding of the practical side of a token outside its own ecosystem. This means studying the factors that can affect supply and demand, and therefore the potential for growth (or decline). It includes researching the distribution of tokens at the presale stage, liquidity pools, etc. Of course, the analysis of charts should also be carried out.