There have been multiple crypto presales launching lately, and all of them are promising something unique. Some are trying to break through the content creation mold, while others want to do something for freelancers.
Some are offering unique trading robots, while others are aiming to offer something akin to an L2 solution to existing high-cap crypto ecosystems.
While all the use cases are commendable, only a few of them are capable of providing long-term upsides.
This is because some of them are just blowing air, with no technological foundation underneath, which means they could disappear as soon as they are listed.
So, how does one separate the wheat from the chaff? What is the actual process to find top crypto presales with long-term upsides?
Tips to Find Worthwhile Presales That Could Offer Long-Term Gains
The trick to finding presales that could give long-term value isn’t in a single answer, but in a process involving research across multiple areas. Here is a list of a few things that people should keep an eye on:
Analyze the Core Utility of the Project
The first task, when investors come across a utility-driven project, is to check the type of utility provided. Is the utility realistic? Is it related to DeFi infrastructure? Is it something related to gaming? Is it promising something scalable? And finally, is the project realistic?
Most crypto ICOs emerge with concepts that are too good to be true. Walking away from them is always better than sticking to them as they sink after their presales conclude.
Check Whether the Team’s Information Is Available
It is crucial for the developers to dox themselves from the very start, as the days of teams with hidden identities are gone. Investors need someone to hold accountable, especially with projects that propose to have long-term upsides. In this case, it is important that all developers have either a LinkedIn profile or an active Twitter account.
Assess the Tokenomics Before Investing
The tokenomics of long-term projects should have a sustainable vesting schedule, reasonable supply caps, and no heavy team allocations. Heavy team allocations mean the “devs” might be waiting for the presale to sell out before they dump their share of the tokens. Vesting could safeguard against this. Therefore, always focus on tokenomics before investing.
Check the Roadmap to See What’s Already Been Done
Most crypto ICOs have 4 to 6 stages in their roadmaps. It is important for investors to assess them before investing in such projects. Projects that have already launched the core utility, such as a testnet or a working model, may have long-term upside. They could be the top crypto ICOs, provided they achieve popular adoption.
However, roadmaps where the project’s technology is shown only as a future vision should be avoided. They provide little value, and there are no real upsides to them.
Join the Community as Soon as Possible
To get better insight into the project, it is important to join the Telegram and Discord communities as early as possible. The conversations between the team and community members will give users a sense of whether the project’s use cases are truly being developed.
It also provides insight into the type of engagement around the project. If it is full of fluff content, then users are better off stepping away and focusing on more worthwhile ICOs.
Find If There Are Early Backers and Partners
While a purely community-driven project with focused utility is commendable, it becomes easier to believe in the potential of a utility ICO if there are VCs or protocol partners backing it. If a crypto ICO project has partners, then it could be a worthy investment.
Watch for Code Audits and Open-Source Development
Utility projects should go through smart contract code audits, as this shows the developers can be trusted and that the project does not have any early red flags that could hinder its growth upon launch. If the project follows an open-source model, then information about it can usually be found on GitHub. In that case, the project may be worth investing in.
Analyze the Lock-in Periods for Presale Investors
If a project is serious about delivering utility, then it may include a lock-in period for presale buyers. This means early investors won’t be able to instantly flip their tokens upon launch, which helps prevent last-minute sell-offs and provides long-term sustainability for the project.
Verify the Launchpad’s Reputation
Investors should ensure that the launchpad for such utility ICOs is not just a Telegram promotion, but an actual reputable website. Platforms like ICO Bench, DAO Maker, CoinList, or Seedify are known to provide space for serious projects.
Conclusion
The number of utility projects coming out of the woodwork is large, but only a few of them are worth the time and attention. The points mentioned in this article will be very helpful to investors who are looking for utility crypto presales that could provide long-term gains.