These days there is a slew of cryptocurrencies coming into existence in a very quick span of time. This includes some good cryptos but also involves a lot of not so good options.
I try to understand a lot of them and before getting deeply involved I follow a basic template.
My template consist of below factors(non-exhaustive list):
Use case:
What is the problem that this cryptocurrency is trying to address?
How big is the issue?
Can this be addressed using existing technology? Not every issue requires the blockchain based decentralized solution.
Is there a white paper available, that explains the issue and solution in a concise manner?
Is this a valid use case for a cryptocurrency or they are just trying to use the buzzwords to earn quick money?Team:
What is the profile/experience of the team members?
Have they successfully delivered in the past?
If some big names are involved, what will be their degree of involvement or they are just for endorsing?
How many core committers are there?
Is the team comfortable in answering questions and explaining the key points?
What traction are they getting in the space for their idea?Product/Roadmap:
What is the current state of product? Is it just an abstract idea or they have some prototype/alpha/beta in place?
What is the timeline for product delivery?
Do they have a clear roadmap of what they want to implement in next 2 years?
Could this product leverage some of the existing technology to reduce the time to implement?
Who are the main competitors and what is this team planning to do better that existing products?
Could this product serve as a layer on top of which more products be created in future?Technology:
Is it creating a new blockchain or using an existing blockchain?
What is the encryption algorithm it is planning to use?The total number of tokens/coins supply:
Is it going to have fixed supply, if yes then how much?
How many tokens are reserved by the company internally?
Plan for releasing additional tokens?Key distinguishers:
What are the noteworthy features that differentiate them from existing technologies?