Published
5 years ago on
July 08, 2018
“Another measure of a token’s success is liquidity (a ready market for buying and selling a particular asset). This measurement can help demonstrate sustained interest and potential customers for a particular venture and its digital coin, according to a National Bureau of Economic Research working paper that compiled data on more than 400 ICOs.â€Furthermore, the article goes on to discuss some of the findings to this research. In essence, liquidity is only truly possible when people work together, in a transparent fashion (no secrets, basically). According to Quartz, research has found that liquidity is most viable when projects focus on the following: Disclosure, Community Engagement, Commitment, Leadership, Quality and a Clear Plan. Disclosure refers to projects that are totally transparent with their project. Things like a whitepaper and source code on Github can go a long way in ensuring this. If this sort of information is available then as an investor, you should see this as a viable project. Community engagement is also vital too, ultimately it is the community that will deem if a project is a success or not. Therefore as an investor, you need to look at how many people are a part of the community. If it’s big and if it’s thriving, the chances are you’ve got a good investment opportunity. A clear plan is a great way to summarise this. If a project is keeping their plan a secret, there’s obviously something going on that they don’t want you to know about. Quartz put this point very nicely:
“Projects that have tokens with a clear utility value are more successful, as are those that intend to create a new blockchain protocol. New software protocols can be the foundation for an ecosystem of new applications and so have much more upside for creating value (though they are riskier).â€There we have it, now you know the secret to becoming a successful crypto-investor. Transparency is the thing that drives this industry. Share knowledge, share findings and share thoughts as every little input can contribute to a wider vision and the wider community. By sharing our own advice with each other, we can all become successful in this, that’s what we all want after all, success.
