The most important factor to consider when researching a crypto project is how the token will be used within the platform, how many tokens is being held by the company and what is the structure of token inflation/deflation?
Remember, when you are buying tokens/coins, you aren't buying a part of their company. You are just buying utility tokens. Even if the project you are invested in becomes extremely successful, in cases of users being allowed to use other currencies like BTC, ETH, Fiat to use the platform, it is less likely that your token will appreciate in value.
Also, when talking about token inflation, token's value increase due to increase in demand. No point of investing in a project that releases 20% of its tokens every year.
So the key factors to consider:
- The total supply
- The total circulating supply
- Company held tokens
- Token Lock-ups and release date
- Token burning process (if any)
- Rewards mechanisms
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