Some days ago, I attended a party with some coworkers: you know, to exchange greetings before summer vacations and all that bullshit.
After a couple of drinks, someone started babbling about crypto and stocks, and, at a certain point, the phrase "If I had bought Bitcoin some years ago I could quit this job" came out, maybe from the lips of one of the drunkest guys (maybe not).
In Italy we have this proverb: "Se fossi un merlo, canterei dal ramo", that, translated, could sound "If I was a bird I could be singing upon a branch".
After the party, I opened my trading app and stared at some quotes. I felt the temptation to do a short, but I was too drunk, so I let it go. But I could not think how far this whole thing has gone. A couple of years ago, if I talked to a coworker about cryptocurrencies, she would have suspected that I was a drug dealer or a kidnapper. Instead, now, terms like Bitcoin and Dogecoin are on everyone's mouth.
I think that the crypto hype of these days looks very like to the internet bubble, but I read this similitude with a positive attitude. Now everyone is making her own token, just as at that time everyone was launching the next big thing: we have projects coming out from nowhere everyday, just as in the days of the dawn of internet. But, as a lot of Dot companies collapsed, so will do a lot of tokens, which have no solid fundamentals but have only been created to speculate from the hype.
In my opinion, the crypto industry will change in the next couple of years: a lot of useless coins will disappear, and only the projects with solid fundamentals will remain. But, how to distinguish the next VA Linux from the next Microsoft?
Actually, the market offers a lot of keys to stick to the projects which have the highest odds. I think that there are lots of signals that can help an investor to pick up a good project.
Smart contracts and disruptive code
The use of Smart Contracts and ability to perform disruptive code will be one of the most valuable assets of a project that want to emerge form the sash on Bitcoin and Ethereum.
To invest in tokens that won't be delisted in a couple of years, you have to ask yourself: does this coin use Smart Contratcs to solve a problem or offer an outstanding service? There are a lot of projects which are not just speculative, but are linked to a set of services usables in exchange of that token. Just to make some examples: Theta, which offers video streaming services like Twitch; Axie Infinity adn REVV, with their massive gameplay; ICP, which is the base of a set of web 3.0 applications; and also more obscure tokens, specialized in the world of healthcare or supply chain.
Even if some (but not all) of those tokens now are underrated, they have good fundamentals, disruptive source code and lots of applications.
Mainstream support
Another key factor for the success of a token, is if it will be able to emerge from the mysts of esoteric swaps and be listed on some mainstream exchange. Tradability and liquidity will be an insurance for the surviving of any crypto project.
"Real world" support
Ability to engage "real world" entities, from institutions to small shops, will be a boost for every project. In this way, the Doge comunity is doing a good work in engaging small shoppers of every corner of the world to accept the coin in exchange for real world products of services.
The ability of becoming "real", to leave footprints in the everyday live of normal people, will be one of the key factor of a token.
Fees
Leveraging of fees and costs of transaction is also a key point. A lot of projects are making efforts to offer better services that the Ethereum blockchain, but will they be able to deliver their promises when their traffic will reach the peaks of Ethereum?
Proprietary wallet
Offering a proprietary wallet to an investor is such a sign of matutiry, and also inspires a sense of security and stability. Developing a proprietary wallet is a must for every DEFI project. From the point of view of the investor, is also a sign of the maturity and commitment of the project.
Istitutional support
May like it or not, but what is worth for stocks, it's also worth for cryptos: if some mainstream fund invest in a token, it will be very unlikely that the asset will sink.
Conclusion
In conclusion, by DYOR on the subjects above listed, it will be easy to pick up some projects with reasonable odds to be still alive in the next years.
The next Bitcoin could be just sitting there, wating someone to pick it up. Or, instead, the money that you will invest in that 0.00000x token would have been better spent in a nice dinner out with your partner. Bonne chance.
