For a crypto project, a token is an important component. With the help of system tokens, users have the opportunity to take part in activities, maintain the operation of the project, and receive benefits from participation in the project. Therefore, it is important for a crypto project to be able to distribute tokens to potential users. Often, tokens are an object of interest for various kinds of investors (holders, traders). In addition to studying the fundamentals of a particular project, a sophisticated investor asks himself a number of questions:
How many tokens are currently in existence?
How many tokens will there be in the future and when will their maximum number be in circulation?
How quickly are tokens issued into circulation?
Does the unlock speed change over time?
How tokens are distributed?
Is there any information to suggest that a large number of tokens were lost, burned, deleted, or unusable for some reason?
Is there deflationary pressure such as token burning?
Are there significant changes in technology that could affect the number of project tokens? For example, Ethereum plans to move from Proof of Work (PoW) to Proof of Stake (PoS).
You can get answers to these questions by studying the tokenomics of the project.
Tokenomics (token economy) is a set of policies and algorithms for creating and distributing project tokens.
#tokenomics
How many tokens are currently in existence?
How many tokens will there be in the future and when will their maximum number be in circulation?
How quickly are tokens issued into circulation?
Does the unlock speed change over time?
How tokens are distributed?
Is there any information to suggest that a large number of tokens were lost, burned, deleted, or unusable for some reason?
Is there deflationary pressure such as token burning?
Are there significant changes in technology that could affect the number of project tokens? For example, Ethereum plans to move from Proof of Work (PoW) to Proof of Stake (PoS).
You can get answers to these questions by studying the tokenomics of the project.
Tokenomics (token economy) is a set of policies and algorithms for creating and distributing project tokens.
#tokenomics
The smart contract is the driving force behind blockchain, the basic building block. If the project is legitimate, the developers are interested in auditing their smart contract for vulnerabilities. If the project was originally planned as a scam, of course, there will be no audit.
Having an audit does not give a 100% guarantee of reliability. After all, the auditor only finds vulnerabilities that the development team must fix. But the vulnerabilities may not always be eliminated or may not be eliminated very quickly for various reasons. Nevertheless, presence of the audit report greatly increases the project's rating. And the more reputable the auditor, the higher the rating of the report. Some of the largest companies in this industry are CertiK, Open Zeppelin, Kudelski Security, Hacken, Slowmist. Their services are quite expensive, it all depends on the scale of the project, the number of lines in the code and other factors. According to our data their prices range from $500 to $500k. Not every new project can afford to order an audit from CertiK. Therefore, having such a report should be considered in conjunction with other fundamental factors.
9RD Analytics makes sure to include such an item in its project studies. We do not do these kinds of audits ourselves. When analyzing a project, we are guided by those audit reports made by specialized audit companies. Since a smart contract audit requires a high level of knowledge in programming. Real professionals not only examine the code, they also simulate different types of attacks on the smart contract. And only after that they give their conclusion.
#audit
Having an audit does not give a 100% guarantee of reliability. After all, the auditor only finds vulnerabilities that the development team must fix. But the vulnerabilities may not always be eliminated or may not be eliminated very quickly for various reasons. Nevertheless, presence of the audit report greatly increases the project's rating. And the more reputable the auditor, the higher the rating of the report. Some of the largest companies in this industry are CertiK, Open Zeppelin, Kudelski Security, Hacken, Slowmist. Their services are quite expensive, it all depends on the scale of the project, the number of lines in the code and other factors. According to our data their prices range from $500 to $500k. Not every new project can afford to order an audit from CertiK. Therefore, having such a report should be considered in conjunction with other fundamental factors.
9RD Analytics makes sure to include such an item in its project studies. We do not do these kinds of audits ourselves. When analyzing a project, we are guided by those audit reports made by specialized audit companies. Since a smart contract audit requires a high level of knowledge in programming. Real professionals not only examine the code, they also simulate different types of attacks on the smart contract. And only after that they give their conclusion.
#audit
The 9RD Analytics team focuses on research for medium- to long-term investments. These are periods of several months and more. Short-term trading is not our specialty.
Investing primarily means saving money. And only then their growth. That is why it is so important to study in detail the project in which you want to invest. Сapital increase is not an easy journey. It is hard work, which requires knowledge and time. But at a distance it brings good results.
We want to share our knowledge and experience with you to find like-minded people. Together we can reach a new level and take our rightful place on the crypto market.
Investing primarily means saving money. And only then their growth. That is why it is so important to study in detail the project in which you want to invest. Сapital increase is not an easy journey. It is hard work, which requires knowledge and time. But at a distance it brings good results.
We want to share our knowledge and experience with you to find like-minded people. Together we can reach a new level and take our rightful place on the crypto market.
About investors
Another factor that allows the project to be evaluated is investors. A project needs initial funds to scale and develop. Few people begin to develop on their own funds. More often than not, investment capital is raised. This is done by raising either public capital (ICO, IEO, IDO) or venture capital. Venture capital funds have different rankings. There are outright speculators who sell project tokens at the first opportunity. This puts pressure on the market and the price of the token starts to go down. And there are Tier1 funds, which have longer-term goals. They study the project comprehensively and assess its prospects. For example, investments from a16z greatly increase the chance of receiving funds from other investors. In this case, the name of the investor increases the reputation of the new project.
But you should not base your conclusions only on this. The presence of a well-known investor in the project is just a positive factor, but not a guarantee of future success. Even large funds go bankrupt; just think of Three Arrows Capital. Not long ago it was managing $10 billion in assets, and on July 1, 2022 it was declared bankrupt. This led to the bankruptcy of several other well-known companies: BlockFi, Voyager and Celsius.
Analyzing a crypto project is a painstaking work. And only the most complete analysis can help to make a decision, but does not give a guarantee of success. After all, the project is managed by the team, not the investor.
9RD Analytics comprehensively studies both new and existing cryptocompanies. We create the level of reports that venture capital investors receive. To date, more than 50 projects have already been analyzed. If you're interested in reviewing them, send a request to @vlt99
#investor
Another factor that allows the project to be evaluated is investors. A project needs initial funds to scale and develop. Few people begin to develop on their own funds. More often than not, investment capital is raised. This is done by raising either public capital (ICO, IEO, IDO) or venture capital. Venture capital funds have different rankings. There are outright speculators who sell project tokens at the first opportunity. This puts pressure on the market and the price of the token starts to go down. And there are Tier1 funds, which have longer-term goals. They study the project comprehensively and assess its prospects. For example, investments from a16z greatly increase the chance of receiving funds from other investors. In this case, the name of the investor increases the reputation of the new project.
But you should not base your conclusions only on this. The presence of a well-known investor in the project is just a positive factor, but not a guarantee of future success. Even large funds go bankrupt; just think of Three Arrows Capital. Not long ago it was managing $10 billion in assets, and on July 1, 2022 it was declared bankrupt. This led to the bankruptcy of several other well-known companies: BlockFi, Voyager and Celsius.
Analyzing a crypto project is a painstaking work. And only the most complete analysis can help to make a decision, but does not give a guarantee of success. After all, the project is managed by the team, not the investor.
9RD Analytics comprehensively studies both new and existing cryptocompanies. We create the level of reports that venture capital investors receive. To date, more than 50 projects have already been analyzed. If you're interested in reviewing them, send a request to @vlt99
#investor
When studying the tokenomics, you need to find the answer to the most important question - what utility does the token bring to project? And to do that, you need to find out what utility the project that issued the token brings. Does the company have a useful and unique service or product, or is it just another scam fundraising project? Many startups create their own cryptocurrency simply because it's a hype. It's more like a customer harvesting, where only the founders of the project make a profit.
You have to understand that when you buy a project's token, you are funding it. It is like buying shares of a company, only you don't get to own a share in the company. If the token went up in value you made a profit, if it went down in value you lost money. And the founders have the ability to sell their tokens at any time, especially since they got them for free.
So far, most of crypto market participants buy tokens in hope that they will go up in price, or to make profit in other ways (staking, farming, airdrop). And only a small part of people buy tokens to use them inside the service of the issuing company. An example of a service that provides an understandable service is The Graph. Our team recently did research on this project. There is an understandable product, a developed ecosystem, a huge number of participants. And the GRT token perfectly complements The Graph's value circulation system.
When analyzing a company's tokenomics, you have to ask yourself questions:
Does the company provide an understandable product or service?
Is the token necessary to use the product or service?
Was it possible to do without the token? If the project is created on an existing blockchain, would it be easier to use the cryptocurrency of that blockchain?
What exactly is the function of the token? Is it used to pay fees, mutual payments for company products or services, does it give a vote at the decision-making level?
In fact, there are considerably more questions about tokenomics. But the ones listed above are some of the most important.
#tokenomics
You have to understand that when you buy a project's token, you are funding it. It is like buying shares of a company, only you don't get to own a share in the company. If the token went up in value you made a profit, if it went down in value you lost money. And the founders have the ability to sell their tokens at any time, especially since they got them for free.
So far, most of crypto market participants buy tokens in hope that they will go up in price, or to make profit in other ways (staking, farming, airdrop). And only a small part of people buy tokens to use them inside the service of the issuing company. An example of a service that provides an understandable service is The Graph. Our team recently did research on this project. There is an understandable product, a developed ecosystem, a huge number of participants. And the GRT token perfectly complements The Graph's value circulation system.
When analyzing a company's tokenomics, you have to ask yourself questions:
Does the company provide an understandable product or service?
Is the token necessary to use the product or service?
Was it possible to do without the token? If the project is created on an existing blockchain, would it be easier to use the cryptocurrency of that blockchain?
What exactly is the function of the token? Is it used to pay fees, mutual payments for company products or services, does it give a vote at the decision-making level?
In fact, there are considerably more questions about tokenomics. But the ones listed above are some of the most important.
#tokenomics
What is a project roadmap and what is it for?
A project roadmap provides a strategic overview of the major elements of a project. It should include goals, milestones, deliverables, resources, and planned timelines. It is a plan of action that the project team has made mandatory. For a project, especially a new one, having a roadmap is very important.
Not having a roadmap is not a good sign, especially for a new project.
It indicates that either the team does not know what actions to take, in which case the project is almost doomed to failure. Or it is a scam created to collect funds from investors. For projects that have existed for several years, the lack of a roadmap is not very critical. Usually the main milestones are already passed, and then the team informs about their goals and their achievement through channels of communication with community members.
For example, Ethereum Classic does not have a roadmap in the traditional sense at all.
What do you need to pay attention to?
The roadmap should be detailed and specific. There should be clear actions that the team plans to perform and deadlines for achieving the specified goals. If the roadmap contains only abstract goals or no specific time periods, this is also bad.
When researching the project, it is worth paying attention to whether the goals whose deadlines have already passed have been achieved. If not, does the team explain the reason. If the team regularly fails to meet stated goals or fails to do so within the stated time frame, this is also a bad signal.
Usually, but not necessarily, the roadmap for a new project covers a period of 1.5-2 years. Then new goals are set and old goals are adjusted. If a project has goals for less than a year, this too may raise questions from investors.
It is not necessary to draw conclusions about the investment attractiveness of an asset only on the basis of the roadmap. It, like other fundamental factors of the crypto project, is only one part of the overall picture.
#roadmap
A project roadmap provides a strategic overview of the major elements of a project. It should include goals, milestones, deliverables, resources, and planned timelines. It is a plan of action that the project team has made mandatory. For a project, especially a new one, having a roadmap is very important.
Not having a roadmap is not a good sign, especially for a new project.
It indicates that either the team does not know what actions to take, in which case the project is almost doomed to failure. Or it is a scam created to collect funds from investors. For projects that have existed for several years, the lack of a roadmap is not very critical. Usually the main milestones are already passed, and then the team informs about their goals and their achievement through channels of communication with community members.
For example, Ethereum Classic does not have a roadmap in the traditional sense at all.
What do you need to pay attention to?
The roadmap should be detailed and specific. There should be clear actions that the team plans to perform and deadlines for achieving the specified goals. If the roadmap contains only abstract goals or no specific time periods, this is also bad.
When researching the project, it is worth paying attention to whether the goals whose deadlines have already passed have been achieved. If not, does the team explain the reason. If the team regularly fails to meet stated goals or fails to do so within the stated time frame, this is also a bad signal.
Usually, but not necessarily, the roadmap for a new project covers a period of 1.5-2 years. Then new goals are set and old goals are adjusted. If a project has goals for less than a year, this too may raise questions from investors.
It is not necessary to draw conclusions about the investment attractiveness of an asset only on the basis of the roadmap. It, like other fundamental factors of the crypto project, is only one part of the overall picture.
#roadmap
We have started researching the Zilliqa blockchain. According to the team it is the first of the blockchain that has applied the sharding technology. We will try to find out whether this blockchain is promising and whether its cryptocurrency ZIL will be interesting for investors.
#ZIL
#ZIL
In order to find out if a cryptocompany is interesting for investors, it is necessary to study a huge amount of data. Social networks, technological development, interaction with investors and customers - each of these aspects should be studied and conclusions drawn.
One of the sources of data can be the project's Github.
What kind of data can you get from studying it?
*how many people are involved in the development of the project;
*whether the founders are involved in the development;
*you can estimate the activity of developers in general and when was the last activity;
*the number of forks and repository stars indicates the popularity and credibility of the project by other developers;
*by studying the project's contributors, you can learn about the professional skills of the team members.
The project's Github study data, like the rest of the fundamental data, is not complete. They supplement the overall picture and help draw more accurate conclusions.
#github
One of the sources of data can be the project's Github.
What kind of data can you get from studying it?
*how many people are involved in the development of the project;
*whether the founders are involved in the development;
*you can estimate the activity of developers in general and when was the last activity;
*the number of forks and repository stars indicates the popularity and credibility of the project by other developers;
*by studying the project's contributors, you can learn about the professional skills of the team members.
The project's Github study data, like the rest of the fundamental data, is not complete. They supplement the overall picture and help draw more accurate conclusions.
#github
Some time ago we worked on an analytical report on the Callisto Network blockchain. The project was studied according to our methodology, all the fundamental components were considered and appropriate conclusions were made.
The project seemed interesting to us and it was decided to invest a small amount of our investment fund in the project token - CLO.
Why did we decide to tell you about it?
The fact is that the leader of the project Callisto Network is completely anonymous. From personal information we only know his pseudonym - Dexaran. Neither his name nor his country of residence in the years of his professional career, he has not revealed. But he has a lot of achievements. He was the leader of one of the four teams involved in the development of Ethereum Classic after the Ethereum fork. His team developed the ERC-223 token standard, which prevents transactions from being sent to random smart contracts. He develops testnets, smart contracts, and deals with smart contract security issues. But nobody knows who he is.
If you were told that the founder of the company was anonymous and did not want to disclose his identity, you would suspect him of trying to cheat. But in Dexaran's case, his achievements speak for him. That's why when analyzing crypto projects you need to consider all information as a whole. Each element adds up to the overall puzzle.
Disclaimer: the information about Callisto Network and its CLO token is not financial advice and is given to make it easier for you to understand how you can interpret the data for analysis.
#team #callisto
The project seemed interesting to us and it was decided to invest a small amount of our investment fund in the project token - CLO.
Why did we decide to tell you about it?
The fact is that the leader of the project Callisto Network is completely anonymous. From personal information we only know his pseudonym - Dexaran. Neither his name nor his country of residence in the years of his professional career, he has not revealed. But he has a lot of achievements. He was the leader of one of the four teams involved in the development of Ethereum Classic after the Ethereum fork. His team developed the ERC-223 token standard, which prevents transactions from being sent to random smart contracts. He develops testnets, smart contracts, and deals with smart contract security issues. But nobody knows who he is.
If you were told that the founder of the company was anonymous and did not want to disclose his identity, you would suspect him of trying to cheat. But in Dexaran's case, his achievements speak for him. That's why when analyzing crypto projects you need to consider all information as a whole. Each element adds up to the overall puzzle.
Disclaimer: the information about Callisto Network and its CLO token is not financial advice and is given to make it easier for you to understand how you can interpret the data for analysis.
#team #callisto
Who the project partners are and why they are needed
New startups are often eager to start partnerships with well-known brands, influencers, or major market players. If a new project manages to get such a partner, it can significantly accelerate its development.
Partnerships can be image or functional. Image partnership is when a well-known brand or Influencer becomes an ambassador of the company. Thus, a new audience is attracted to the new project and it becomes more recognizable. The partner can get a one-time financial reward in fiat, payment in project tokens, or other sponsorship support. The terms depend on the goals and desires of both partners.
Functional (strategic) partnership implies practical participation of a partner in the development and functioning of a new company. In this case well-known and financially stable companies are involved. It is not easy for a startup to get such a partner. It must either prove to its strategic partner that it has a unique and promising business idea. Or already have an MPV (Minimal Viable Product) that has shown good results that can be scaled. In this case, the startup can gain access to its partner's audience, ecosystem or technology. There are cases when a startup becomes a division of its partner's company. That's what happened with Trust Wallet, which was founded in 2017. In 2018, the wallet was bought by Binance, and the founder of Trust Wallet stayed with the project to further develop the product. As of September 2022, the founder had already left the team.
Conclusions: the presence of a well-known and financially stable partner significantly increases (but does not guarantee) the chances of a new project for success. Therefore, when analyzing a company, you need to pay attention to whether there are partners, what their reputation and achievements are. Will they help their protégé with something other than money. Whether they are market participants or just a venture capital fund. In the case of Trust Wallet, Binance has successfully built this wallet into its ecosystem, competing with Metamask, one of the most well-known wallets.
The lack of partners does not mean that the project will fail. You just need to take a close look at what the company plans to grow with. It is quite possible that the team consists of professionals, and they can manage on their own at first. It may also not be advisable to spend money on ifluensers in the first stages of development. As always, draw conclusions based on all the data together.
Disclamer: The information about Trust Wallet, Binance and Metamask is not financial advice and is given solely as an example to make it easier for you to absorb the information.
#partner #trustwallet
New startups are often eager to start partnerships with well-known brands, influencers, or major market players. If a new project manages to get such a partner, it can significantly accelerate its development.
Partnerships can be image or functional. Image partnership is when a well-known brand or Influencer becomes an ambassador of the company. Thus, a new audience is attracted to the new project and it becomes more recognizable. The partner can get a one-time financial reward in fiat, payment in project tokens, or other sponsorship support. The terms depend on the goals and desires of both partners.
Functional (strategic) partnership implies practical participation of a partner in the development and functioning of a new company. In this case well-known and financially stable companies are involved. It is not easy for a startup to get such a partner. It must either prove to its strategic partner that it has a unique and promising business idea. Or already have an MPV (Minimal Viable Product) that has shown good results that can be scaled. In this case, the startup can gain access to its partner's audience, ecosystem or technology. There are cases when a startup becomes a division of its partner's company. That's what happened with Trust Wallet, which was founded in 2017. In 2018, the wallet was bought by Binance, and the founder of Trust Wallet stayed with the project to further develop the product. As of September 2022, the founder had already left the team.
Conclusions: the presence of a well-known and financially stable partner significantly increases (but does not guarantee) the chances of a new project for success. Therefore, when analyzing a company, you need to pay attention to whether there are partners, what their reputation and achievements are. Will they help their protégé with something other than money. Whether they are market participants or just a venture capital fund. In the case of Trust Wallet, Binance has successfully built this wallet into its ecosystem, competing with Metamask, one of the most well-known wallets.
The lack of partners does not mean that the project will fail. You just need to take a close look at what the company plans to grow with. It is quite possible that the team consists of professionals, and they can manage on their own at first. It may also not be advisable to spend money on ifluensers in the first stages of development. As always, draw conclusions based on all the data together.
Disclamer: The information about Trust Wallet, Binance and Metamask is not financial advice and is given solely as an example to make it easier for you to absorb the information.
#partner #trustwallet
What is on-chain analysis and how to apply it?
On-chain analysis is considered a separate area. At 9RD Analytics, we pay a lot of attention to it, and many conclusions are based on the data from the network of the project in question.
With this article we start a series of lessons on analyzing network parameters.
https://telegra.ph/What-is-on-chain-analysis-and-how-to-apply-it-09-28
#onchain
On-chain analysis is considered a separate area. At 9RD Analytics, we pay a lot of attention to it, and many conclusions are based on the data from the network of the project in question.
With this article we start a series of lessons on analyzing network parameters.
https://telegra.ph/What-is-on-chain-analysis-and-how-to-apply-it-09-28
#onchain
Telegraph
What is on-chain analysis and how to apply it?
All network data is registered in a blockchain. Simply put, a blockchain is a list of transactions that is constantly growing. The characteristics of a transaction (and all data) in a blockchain: 1. once data is on the blockchain, it stays there forever;…
Our team has completed research on the Zilliqa blockchain. Detailed information is expounded in our analytical report.
Main conclusions:
1. From the investor's point of view, there are more interesting projects.
2. Zilliqa does not seem like a high-risk investment, the project has a fairly long life span and a strong development team;
3. Major achievements, if any, are yet to come for Zilliqa.
Disclaimer: The conclusions about the Zilliqa blockchain are the opinions of 9RD Analytics analysts. Other investors may have opinions that differ from ours. We do not offer this information as investment advice. DYOR.
#ZIL
Main conclusions:
1. From the investor's point of view, there are more interesting projects.
2. Zilliqa does not seem like a high-risk investment, the project has a fairly long life span and a strong development team;
3. Major achievements, if any, are yet to come for Zilliqa.
Disclaimer: The conclusions about the Zilliqa blockchain are the opinions of 9RD Analytics analysts. Other investors may have opinions that differ from ours. We do not offer this information as investment advice. DYOR.
#ZIL
Another important skill for an analyst is the ability to use search engines. You can object - everyone knows how to use them. It is enough to enter a search query in Google.
Yes, at the most primitive level it is. This is the level that people use to find movies, recipes, life hacks. This method is useful for finding information that is on the surface. It's not hard to find a new Marvel movie, or breaking news about Johnny Depp.
The task looks completely different when you need to find the company's financial statements, data about its team members, investors and a lot of other information that will help you get an overall picture of the project under study.
The most elementary thing an analyst needs to know about is advanced search operators. I won't go into detail here about what it is. You can find this information yourself using Google. You see, even at this stage you can't do without search skills :) Advanced search operators will greatly increase your opportunities. And you will see how much the world of information is larger than you thought before.
The second way to increase your search skills is to search for information not only in Google, but also in other search engines. After all, besides Google, there are others: Bing, Yahoo, DuckDuckGo. Each of them has its own information search algorithm. And they give different results for the same query.
Very often, specific information is needed to analyze a company. Annual financial statements, results of audits, registration data of a legal entity, data on the founders of the company. This information is often kept publicly available on various government websites. You can even find out if the company is lobbying its interests in the legislature of the country. You can find this information at Opensecrets.org.
In May 2022, 9RD Analytics was commissioned by a group of investors to research the USDC stablecoin. During the study, the connection of Centre, the issuer of the stablecoin, with one of the oldest US banks - Bank of New York Mellon was revealed. The main asset manager of the USDC cash reserves is the investment company BlackRock. In April, BlackRock led a $400 million investment round for Circle, the company behind USDC. BlackRock is also one of the main shareholders of BNY Mellon. That is, USDC has excellent financial partners. By the way, according to Opensecrets, BlackRock actively lobbies its interests in the federal government.
On May 10, 2022, the US Senate held hearings on the Stablecoin Transparency Act, which will set quality standards for cash reserves. It provides for the need for support in US dollars or government securities with a maturity of less than a year, and will force issuers to publish public audits. And USDC is the only stablecoin that met these requirements at that time.
Based on this information, our customers have formed for themselves a clear understanding of the financial condition of USDC. To the best of our knowledge, some portion of the fund has been diversified into this stablecoin.
#search
Yes, at the most primitive level it is. This is the level that people use to find movies, recipes, life hacks. This method is useful for finding information that is on the surface. It's not hard to find a new Marvel movie, or breaking news about Johnny Depp.
The task looks completely different when you need to find the company's financial statements, data about its team members, investors and a lot of other information that will help you get an overall picture of the project under study.
The most elementary thing an analyst needs to know about is advanced search operators. I won't go into detail here about what it is. You can find this information yourself using Google. You see, even at this stage you can't do without search skills :) Advanced search operators will greatly increase your opportunities. And you will see how much the world of information is larger than you thought before.
The second way to increase your search skills is to search for information not only in Google, but also in other search engines. After all, besides Google, there are others: Bing, Yahoo, DuckDuckGo. Each of them has its own information search algorithm. And they give different results for the same query.
Very often, specific information is needed to analyze a company. Annual financial statements, results of audits, registration data of a legal entity, data on the founders of the company. This information is often kept publicly available on various government websites. You can even find out if the company is lobbying its interests in the legislature of the country. You can find this information at Opensecrets.org.
In May 2022, 9RD Analytics was commissioned by a group of investors to research the USDC stablecoin. During the study, the connection of Centre, the issuer of the stablecoin, with one of the oldest US banks - Bank of New York Mellon was revealed. The main asset manager of the USDC cash reserves is the investment company BlackRock. In April, BlackRock led a $400 million investment round for Circle, the company behind USDC. BlackRock is also one of the main shareholders of BNY Mellon. That is, USDC has excellent financial partners. By the way, according to Opensecrets, BlackRock actively lobbies its interests in the federal government.
On May 10, 2022, the US Senate held hearings on the Stablecoin Transparency Act, which will set quality standards for cash reserves. It provides for the need for support in US dollars or government securities with a maturity of less than a year, and will force issuers to publish public audits. And USDC is the only stablecoin that met these requirements at that time.
Based on this information, our customers have formed for themselves a clear understanding of the financial condition of USDC. To the best of our knowledge, some portion of the fund has been diversified into this stablecoin.
#search
We have begun our research on the Chia Network. When the analysis report is done, we will share the conclusions about the XCH token in the channel.
#XCH
#XCH
On-chain analysis is a huge section of analytics. It uses a lot of different parameters, indicators, characteristics. Some of them are derived from others, some are basic. One of the basic on-chain characteristics of any cryptoproject is the addresses of the project token holders.
https://telegra.ph/Indicator-Number-of-addresses-10-06
#address
https://telegra.ph/Indicator-Number-of-addresses-10-06
#address
Telegraph
Indicator Number of addresses
1. Total number of addresses - indicates how many addresses of a token have ever been registered. 2. Number of addresses with non-zero balance - addresses which have a number of tokens other than zero. This parameter is more important than the previous one.…
What is the purpose of the company?
When studying the tokenomics of the protocol, it is necessary to find the answer to the important question - why was the project created? What is it for, how can it be used? There are many projects that are created just for the sake of their own token. Then the creators conduct an ICO and collect money from the gullible crowd. The team is rich, the investors are perpetual token holders.
A new blockchain-based protocol has to solve a pressing problem, to benefit its customers. So when researching a new project, it's very important for the analyst to find an answer to the question - what useful function does the project perform? Maybe it is a game, a useful service, or the protocol produces some web3-product? If the answer to this question is positive, then with a high probability the token will have intrinsic value. For example, Filecoin is a decentralized storage network. It's an understandable product - a server for storing information on a global scale. It makes sense to use your cryptocurrency there. Or MANA - cryptocurrency, which is used to buy real estate in the Decentraland meta-universe.
Analyzing a cryptocurrency company is a lot like analyzing an ordinary, offline company. You need to understand the market that the new project is entering. For example, if you're analyzing a new DEX, think about how is it going to attract new customers? What are the arguments that will allow it to compete with Uniswap or PancakeSwap? Or is it just another bonfire in which investors' and token buyers' money will burn?
You can argue - for example, when Biswap on BNB Chain was created, PancakeSwap already existed. But you have to analyze the information comprehensively, Biswap's strategic partner is Binance Labs and the DEX team was one of the finalists of the Most Valuable Builder accelerating program. Now Biswap is quite successful DEX.
The protocol is a business, and a business should make a profit. The token is part of the economic system of the protocol and should have intrinsic value at the expense of the value of the protocol.
Of course, we have a good example where a crypto project supposedly does not bring any practical benefit, but its cryptocurrency has value - it is bitcoin. But it has its own special role - bitcoin is the progenitor of all cryptocurrencies and due to its limited supply is perceived as the gold standard.
Therefore, an important tip - when analyzing the tokenomics of a project, immediately find out what benefits the project brings or plans to bring. The more in-demand the product or service will be, the more valuable the token of that project will be.
Disclamer: All the projects mentioned in this post are given as examples only. We do not urge to buy their assets, nor do we confirm or deny their usefulness or investment attractiveness.
#tokenomics
When studying the tokenomics of the protocol, it is necessary to find the answer to the important question - why was the project created? What is it for, how can it be used? There are many projects that are created just for the sake of their own token. Then the creators conduct an ICO and collect money from the gullible crowd. The team is rich, the investors are perpetual token holders.
A new blockchain-based protocol has to solve a pressing problem, to benefit its customers. So when researching a new project, it's very important for the analyst to find an answer to the question - what useful function does the project perform? Maybe it is a game, a useful service, or the protocol produces some web3-product? If the answer to this question is positive, then with a high probability the token will have intrinsic value. For example, Filecoin is a decentralized storage network. It's an understandable product - a server for storing information on a global scale. It makes sense to use your cryptocurrency there. Or MANA - cryptocurrency, which is used to buy real estate in the Decentraland meta-universe.
Analyzing a cryptocurrency company is a lot like analyzing an ordinary, offline company. You need to understand the market that the new project is entering. For example, if you're analyzing a new DEX, think about how is it going to attract new customers? What are the arguments that will allow it to compete with Uniswap or PancakeSwap? Or is it just another bonfire in which investors' and token buyers' money will burn?
You can argue - for example, when Biswap on BNB Chain was created, PancakeSwap already existed. But you have to analyze the information comprehensively, Biswap's strategic partner is Binance Labs and the DEX team was one of the finalists of the Most Valuable Builder accelerating program. Now Biswap is quite successful DEX.
The protocol is a business, and a business should make a profit. The token is part of the economic system of the protocol and should have intrinsic value at the expense of the value of the protocol.
Of course, we have a good example where a crypto project supposedly does not bring any practical benefit, but its cryptocurrency has value - it is bitcoin. But it has its own special role - bitcoin is the progenitor of all cryptocurrencies and due to its limited supply is perceived as the gold standard.
Therefore, an important tip - when analyzing the tokenomics of a project, immediately find out what benefits the project brings or plans to bring. The more in-demand the product or service will be, the more valuable the token of that project will be.
Disclamer: All the projects mentioned in this post are given as examples only. We do not urge to buy their assets, nor do we confirm or deny their usefulness or investment attractiveness.
#tokenomics
We have completed the Chia blockchain analytics report that we were commissioned by a venture capital fund. We want to share with you the general conclusions.
The main negative trend is that the XCH rate has been dropping almost since the launch of the mainnet.
And yet, we are also considering significantly increasing our investment in this cryptocurrency. Why?
1. The founder created and sold a successful project. His vast experience in p2p technology undoubtedly minimizes the technological risks.
2. The company is planning an IPO. The top management, thanks to their qualifications and experience, has the ability to achieve such a goal.
3. Chia Network creates legal compliance with SEC requirements and lobbies its interests in the U.S. federal government. This will give the opportunity to interact with large companies in the same legal field.
4. The company is already involved in a major international carbon credit project.
5. The company has original products and intellectual assets, including a patent.
6. Chia Network has attracted the attention of the most prominent investors. This is subjective, but a positive factor.
7. The price of XCH at the moment reached $2500, and now it has fallen 80 times.
Two strategies can be considered. The first, speculative, consists in waiting for the IPO. The event in the community is long-awaited and with a high probability it will move the price of XCH up. To what extent will largely depend on the market phase.
The second strategy is long-term, with the expectation that the Chia Network will be able to attract large corporations and international organizations to its blockchain. The time horizon is likely to be a year or more. In addition to developing the potential of the company's internal resources, we should also expect a growing wave of bull market. As part of this strategy, the trigger for a price increase could be a halving, which will happen on 3/19/2024.
Besides, this coin is already in our portfolio, we were buying it:
11/15/2021 - $161.49
12/28/2021 - $102.37
2/15/2022 - $80.01
The average purchase price is $97.34, so we have an opportunity to very much lower our entry point into the asset.
Disclamer: this information is not investment advice. We are only telling you what we are doing, but we are not encouraging you to invest in Chia blockchain and its cryptocurrency XCH. It is up to you to research the asset yourself before making an investment decision.
#XCH
The main negative trend is that the XCH rate has been dropping almost since the launch of the mainnet.
And yet, we are also considering significantly increasing our investment in this cryptocurrency. Why?
1. The founder created and sold a successful project. His vast experience in p2p technology undoubtedly minimizes the technological risks.
2. The company is planning an IPO. The top management, thanks to their qualifications and experience, has the ability to achieve such a goal.
3. Chia Network creates legal compliance with SEC requirements and lobbies its interests in the U.S. federal government. This will give the opportunity to interact with large companies in the same legal field.
4. The company is already involved in a major international carbon credit project.
5. The company has original products and intellectual assets, including a patent.
6. Chia Network has attracted the attention of the most prominent investors. This is subjective, but a positive factor.
7. The price of XCH at the moment reached $2500, and now it has fallen 80 times.
Two strategies can be considered. The first, speculative, consists in waiting for the IPO. The event in the community is long-awaited and with a high probability it will move the price of XCH up. To what extent will largely depend on the market phase.
The second strategy is long-term, with the expectation that the Chia Network will be able to attract large corporations and international organizations to its blockchain. The time horizon is likely to be a year or more. In addition to developing the potential of the company's internal resources, we should also expect a growing wave of bull market. As part of this strategy, the trigger for a price increase could be a halving, which will happen on 3/19/2024.
Besides, this coin is already in our portfolio, we were buying it:
11/15/2021 - $161.49
12/28/2021 - $102.37
2/15/2022 - $80.01
The average purchase price is $97.34, so we have an opportunity to very much lower our entry point into the asset.
Disclamer: this information is not investment advice. We are only telling you what we are doing, but we are not encouraging you to invest in Chia blockchain and its cryptocurrency XCH. It is up to you to research the asset yourself before making an investment decision.
#XCH
What information can be extracted by analyzing blockchain nodes? Let's figure it out.
https://telegra.ph/What-to-look-for-when-analyzing-nodes-10-23
#onchain #node
https://telegra.ph/What-to-look-for-when-analyzing-nodes-10-23
#onchain #node
Telegraph
What to look for when analyzing nodes?
When studying blockchain, it is important to consider all the risks to which it may be exposed. The critical point of vulnerability are nodes. Exactly what risks can they be exposed to? Number of nodes For any network, there is a minimum critical number of…
What role could China play in a future bull market? Read this, it's very interesting.
https://entrepreneurshandbook.co/comeback-fda90ba90677
#arthurhayes
https://entrepreneurshandbook.co/comeback-fda90ba90677
#arthurhayes
Medium
Comeback
(Any views expressed in the below are the personal views of the author and should not form the basis for making investment decisions, nor…
One of the most anticipated events of 2022 was the launch of the Aptos mainnet. We didn't miss it either and decided to do our own analysis of the new blockchain. What did we find out?
A great deal of critical information. The most common negatives are:
- the number of transactions per second does not match the declared
- lack of transparency of the tokenomics
- almost all tokens are blocked by validators in staking
- lawsuit against Mo Shaikh
In addition, it appears that an attacker has interfered with the airdrop process and has misappropriated an estimated 6.3 million APT coins.
Still, we think Aptos has a promising future. Why? As we know, Aptos was created by former Meta employees who worked on the Diem blockchain. The assets of Diem were sold to Silvergate Capital holding company and its subsidiary is Silvergate Bank. What follows is very interesting. It turns out that this bank is a leading provider of services to institutional digital asset customers.
The bank's clients include:
- 94 crypto exchanges, including FTX, Coinbase, Binance, Gemini, Bitstamp;
- 830 institutional investors (hedge funds, venture capital funds, private equity funds, family offices and traditional asset managers);
- 381 large companies associated in one way or another with digital currencies.
One of the bank's flagship products is the Silvergate Exchange Network (SEN), which is actively used. It is Silvergate Bank's internal network that allows customers to send U.S. dollars 24 hours a day between their accounts and the accounts of other Silvergate customers.
Silvergate Bank's third-quarter 2022 performance:
- net income - $43.3 million;
- number of digital asset clients - 1,677;
- transfers to SEN - $112.6 billion;
- revenue from commissions for digital asset transactions - $7.9 million;
- average customer deposit associated with digital assets -$12 billion;
Silvergate Bank has identified a need from its customers for a regulated and scalable stabler backed by U.S. dollars to move funds seamlessly. And the bank intends to realize this opportunity using assets acquired from Diem. By combining blockchain technology and the Silvergate Exchange Network, the corporation plans to create a next-generation global payment system.
So Aptos blockchain is a payment system for mega crypto whales. And everything else is a byproduct, which may also produce profits in the future.
These are some interesting conclusions.
Disclamer: The information about Aptos and Silvergate is not financial advice and is given solely as an example to make it easier for you to absorb the information.
#partner #investor
A great deal of critical information. The most common negatives are:
- the number of transactions per second does not match the declared
- lack of transparency of the tokenomics
- almost all tokens are blocked by validators in staking
- lawsuit against Mo Shaikh
In addition, it appears that an attacker has interfered with the airdrop process and has misappropriated an estimated 6.3 million APT coins.
Still, we think Aptos has a promising future. Why? As we know, Aptos was created by former Meta employees who worked on the Diem blockchain. The assets of Diem were sold to Silvergate Capital holding company and its subsidiary is Silvergate Bank. What follows is very interesting. It turns out that this bank is a leading provider of services to institutional digital asset customers.
The bank's clients include:
- 94 crypto exchanges, including FTX, Coinbase, Binance, Gemini, Bitstamp;
- 830 institutional investors (hedge funds, venture capital funds, private equity funds, family offices and traditional asset managers);
- 381 large companies associated in one way or another with digital currencies.
One of the bank's flagship products is the Silvergate Exchange Network (SEN), which is actively used. It is Silvergate Bank's internal network that allows customers to send U.S. dollars 24 hours a day between their accounts and the accounts of other Silvergate customers.
Silvergate Bank's third-quarter 2022 performance:
- net income - $43.3 million;
- number of digital asset clients - 1,677;
- transfers to SEN - $112.6 billion;
- revenue from commissions for digital asset transactions - $7.9 million;
- average customer deposit associated with digital assets -$12 billion;
Silvergate Bank has identified a need from its customers for a regulated and scalable stabler backed by U.S. dollars to move funds seamlessly. And the bank intends to realize this opportunity using assets acquired from Diem. By combining blockchain technology and the Silvergate Exchange Network, the corporation plans to create a next-generation global payment system.
So Aptos blockchain is a payment system for mega crypto whales. And everything else is a byproduct, which may also produce profits in the future.
These are some interesting conclusions.
Disclamer: The information about Aptos and Silvergate is not financial advice and is given solely as an example to make it easier for you to absorb the information.
#partner #investor
When analyzing a crypto project, you must pay attention to the security of smart contracts. It is unlikely that any of you can analyze a smart contract on your own, you need to be proficient in the appropriate programming language and have experience creating smart contracts. We have already written about the need for an audit.
How else can you evaluate whether a company is serious about the security of its code? You can do that by asking whether they have a Bug Bounty program. What budget it is allocated for, how many programmers and how often they participate in this program. What is the average amount per person and the total amount already paid. The answers to these questions will help you estimate the likelihood of a hack.
For example, the Zilliqa blockchain's Bug Bounty program has paid out $24950 over its lifetime, with an average payout range of $1200 to $6000 and a maximum payout of $10000. And the Aptos team gave $1 million to the same program. Clearly, such an amount should attract many programmers to the Bug Bounty Program.
These are circumstantial signs that allow you to add another fact to your analysis of the crypto project. This way your conclusions will be more accurate and logical. And so you will be able to make the right investment decisions.
We are trying to do more than just tell you our conclusions. We would like you to draw the right conclusions yourself. And to do that, you need to learn all the time. And we're here to help you do that.
#audit #security
How else can you evaluate whether a company is serious about the security of its code? You can do that by asking whether they have a Bug Bounty program. What budget it is allocated for, how many programmers and how often they participate in this program. What is the average amount per person and the total amount already paid. The answers to these questions will help you estimate the likelihood of a hack.
For example, the Zilliqa blockchain's Bug Bounty program has paid out $24950 over its lifetime, with an average payout range of $1200 to $6000 and a maximum payout of $10000. And the Aptos team gave $1 million to the same program. Clearly, such an amount should attract many programmers to the Bug Bounty Program.
These are circumstantial signs that allow you to add another fact to your analysis of the crypto project. This way your conclusions will be more accurate and logical. And so you will be able to make the right investment decisions.
We are trying to do more than just tell you our conclusions. We would like you to draw the right conclusions yourself. And to do that, you need to learn all the time. And we're here to help you do that.
#audit #security
Telegram
9RD Analytics
The smart contract is the driving force behind blockchain, the basic building block. If the project is legitimate, the developers are interested in auditing their smart contract for vulnerabilities. If the project was originally planned as a scam, of course…