Everyone has a favorite coin, that one project that really captured their interest and imagination. Crypto fandom certainly reaches truly high levels of exuberance, with legions loudly insisting that their pet project is the one for the ages. How right are they, though? How much of it is just hot air? What are the real prospects of your favorite coin ever getting anywhere? Let’s take a look.
Does it have a unique value proposition?
First up, stop to think what makes this project special. What does it really do that nothing else does quite the same? Is it yet another simple payment coin with nothing important to distinguish itself from the competitors? Is it a basic smart contract platform like many in its field? Another banking-geared ledger or privacy coin? What makes this one different, special, or otherwise worthy of rising above the rest?
Is it scalable?
One aspect that doesn’t get nearly the attention it deserves is scaling. How will this network function when lots of people are trying to use it? The space is full of casual throwaway answers and dismissive theories, and very few practical, anticipatory plans that cover every stage of growth. In reality, most run into issues very quickly, and you can see many of the top projects rendered nearly unusable due to scaling issues.
Does it have enough development talent and funding?
The backbone of any project, everyone likes to think they have the best developers in the business. Sometimes they’re right. But what about funding? Does the project have enough resources to accomplish everything they desire, and then some? Are you stuck begging for donations or volunteer work?
Are business partnerships being formed?
This is a key aspect missing from many projects in the space: building out an economic network. All too often, the grassroots nature of cryptocurrency results in fans shouting out the glories of their preferred coin, and then simply expecting integrations to follow organically. While grassroots lobbying can certainly work, the real trick is to get a dedicated team of professionals to speak privately with businesses and form partnerships with strategic, long-term goals in mind. That’s the real way to distinguish grown up projects: the foundations of real-world use.
What are its prospects for real use with its targeted demographic?
This last one is often ignored. Once you’ve figured out the coin’s primary benefits and use cases, and who will likely be using it, it makes sense to figure out if it actually works for this group. Does this truly work for the intended group? Will they want to use it? Will they even find out about it? Are the necessary steps even being taken to ensure that this group uses the network in any meaningful volume? An intelligent, comprehensive approach to this last point is what will truly make or break a project long-term.