How to do effective research before voting on a presale
Some key tips to DYOR and make a decision based on arguments instead of emotions
We all know the huge opportunities that are available in Initial Offerings (commonly known as presales or IDOs). Joining a newborn project in such an early stage can lead to an increase of x2, x5, x10, or sometimes even + x100 increase in the value of the token.
But not everything is always so good. In the IDO industry, there are also failed projects, bad intentioned actors, unexpert project owners, badly structured tokenomics, and more.
At DxLaunch we have built a fully decentralized launchpad protocol, driven by the community, and powered by the largest partners’ network in all DeFi. This provides a framework to maximize the chance of success, thus benefiting pre-sale investors.
We have prepared some important suggestions that will be really useful for the users so they can spot the best projects and vote positive for them… and also recognize bad projects and vote negative to avoid them.
As we are all here to see the project grow, is very important to see what are the future plans of the project. An ambitious roadmap shows good chances of experiencing great growth, but be careful, it’s very important that the milestones are realistic and achievable.
One of the most important aspects of a DeFi project is its community. People from all around the world have access to multiple DApps, and some of them have a really good products to offer. But sometimes that’s not enough to achieve success.
A community with individuals that know and understand what the project is about, what is it trying to solve, and how it intends to achieve it, is essential to survive in this volatile industry.
Audit & KYC → Security
On one side, an audit is a must for every DeFi project. Not everyone can read contracts, but luckily there are companies that do that work and traduce it into simple reports where they share what vulnerabilities they have found, suggestions to solve them, and more.
It’s important to check that there are no high-severity issues unsolved, and that the audit company is serious. | Our security partners → Certik, HashEx, RugDoc, DeFi Shield, Paladin.
KYC is the process where the team behind the project reveals their personal identities. Even though this is not essential, it can be a bonus that works as an extra layer of security.
Supply → Fixed or inflationary
By participating in a presale, you are not only betting on the success of the project, but you are also doing it on the price of the native token of that project.
Minting new tokens does not mean that a project will not succeed, but it’s important to take into consideration that it will probably lead to an increase in the selling pressure of the token, and have a negative impact on the price.
Having a fixed supply and not minting any new tokens after launch is a very valuable aspect in terms of future price growth expectations.
All these projects are backed by blockchain technology. They all have websites, smart contracts, and different kind of features that are what provides value to the users.
Navigating and exploring the project website before voting (if the website is live) is a great way to analyze whether there is an advanced dev team behind it and have a more accurate estimation of whether they can achieve the milestones they propose or not.