@brucefenton posted on his twitter a thread called:
10 Things to Consider When Investing in a Digital Asset
Acronym spells SPACESUITX
- Security
- Participation
- Accounting & Legal
- Community, Management & Team
- Earnings
- Supply & Demand
- Usability
- Industry / Institutional Backing
- Technical
- X Factor
Rank of 1-10 each = final score 1-100
Security:
how secure is the blockchain or smart contract, what blockchain does the project use, how might this be attacked?
Participation:
What are you actually getting for this token? Is it hopes of digital gold, is it a share in a company, is it an illegal security, is it an API key?
Accounting and Legal:
How does your token or digital asset relate to the overal project? Is there a parent company? Is it a non profit? Is there a legal structure?
Community Management and Team:
Who is working on this, who suppprts it and why. What it's the track record of the team?
Earnings:
Will this asset earn anything? Will it have value? Why? Of the project does well how will it translate into profit for this digital asset?
Supply and Demand:
Who wants this digital asset? Why? What will they use or HODL it for?
How many are there? Who can decide to make more?
Usability:
Who will use this token and why? Was usability / "utility" an artificial afterthought to comply with securities regs or is it actually usable? Why? How? For what purpose? What else could serve that purpose better or cheaper?
Industry / Institutional Backing:
Who in the industry or of major institutions outside the industry is participating in this, being disrupted by this or who cares about this? Why?
Technical:
What is the technical merit of the project? Who are the devs? What do they do?
X-Factor:
What else is special about this/ not reflected in the list? Add your own factor here.
Since it's quite valuable information and he posted on creative commons incentivizing people to spread it, I thought it was a good idea to spread the word here. Feel free to share, always give credit ;)
I'll make other posts analysing cryptocurrency projects using the SpacesuitX method and link back to this with all explanation. In case you want to see the original post on twitter by Bruce click here
In his words:
^^^ the above method called SpacesuitX BELONGS TO YOU it is Free and Open Source for you to use, adapt and share as you see fit for commercial or non commercial uses.
Write a report, make a blog, be an analyst, run your own fund.
It's OPEN SOURCE & free to use
Go
Enjoy!
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