How to define that a crypto project is doomed to collapse?

Nov 12, 2019 0
How to define that a crypto project is doomed to collapse?

If you plan to invest money in cryptocurrency and do not want to lose them, then we recommend that you read this article. Today, there are countless blockchain projects waiting for their investors. Given such a large number of projects, it is very important ahead of time to understand which of the projects will be successful and which is doomed to failure. The most important thing in this business is not to go about emotions. Read the article and then count how many signs from the attached list have accumulated in the project in which you want to invest your money. If there are four or five of them, then this is a bad sign.

 

1. At the very beginning the project does not adhere to timelines already

 

If at the very beginning of their journey the team only does that it postpones its goals and changes its roadmap, then believe us - this does not promise anything good. As a rule, lagging behind deadlines is a sign of incompetence. This does not mean that you need to urgently get rid of this cryptocurrency, however, there is already reason to think. In any case, we would definitely not advise you to consider such a project in the long term.

 

2. Inconsistency in the manual itself

 

The presence of decentralization does not completely eliminate the need for well-coordinated manual. In the end, someone must be responsible for their creation. With the help of decentralization, a cryptocurrency project can have many faces and votes, however, if you notice that the opinions of the manual differ, then this is not a good sign. As a rule, such discrepancies are one of the clear signs of emerging conflicts. However, if the discrepancies are quickly resolved, then there is nothing to worry about. It is quite another matter if they occur on a regular basis and / or are delayed.

 

3. Avoiding important issues

 

If you started to notice that the creators of the project began to evade questions, providing vague wording, then this is a clear sign of secrecy. If the question concerns any long-term prospects of the project, then you can still understand the reason why the creators of the project can give vague answers. In all other cases, this is another reason to beware. Secrecy and a decentralized project are still not the most compatible concepts.

 

4. Too many conditions necessary for the success of the project

 

If for the success of the project it is required that all tasks be implemented in full accordance with the original intentions, then this is a bad sign, which usually speaks of not the most successful business model. Since the more factors are critical to success, the greater the likelihood that such a project will fail as soon as something goes wrong. Can you name a project reliable where just one little thing can send everything down the drain?

 

5. Weak community

 

Having a strong community is also a very important component of a successful project. At the same time, it is extremely important that the community should not consist solely of speculators, but should have people who advocate for the project. For example, if the health sector is included in the company's field of activity, then it is worth taking a closer look at what part of this community are the aesculapius and other specialists in this industry. Without a strong audience, there will be no universal decision.

 

6. Having an already successful centralized option

 

If the company you want to join has a centralized analogue that already suits consumers, then its blockchain alternative will have obviously higher requirements. Take a look at it all from a consumer perspective: what's the point of joining a decentralized project when there are already quite successful centralized solutions?

 

7. Dramatic changes in the rules of participation

 

At first glance, this may seem like a trifle. However, in reality this is a very bad sign. After all, think for yourself: when the project is really decentralized - not in words but in deeds - then no one has the opportunity to take and change the rules. If this still happens, then the project is clearly not decentralized in the full sense of the word. And here is some more food for thought: think, if even the changes concern some, at first glance, little things, then who guarantees that in the future the company will not accept drastic changes regarding some really significant things?

 

In conclusion we want to remind you that all of the above are just signs. You always need to look at the big picture before making any conclusions. However, if you keep all the things listed above in mind, then when choosing a project for investment you will have less chance of making a mistake.

 

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