Lambda Chi CapitalMost coins that trend on crypto YouTube are gone within a cycle. These ten questions won't tell you what a price will do. They'll tell you whether there's anything there to judge.
- What problem does it solve? If you can't say it in one sentence, neither can the market.
- Who uses it today? Real users and real fees paid beat roadmaps and promises. Look up its fees and active addresses.
- Who built it, and who owns it? Check the team, and how much of the supply insiders and early investors hold.
- What's the supply schedule? Maximum supply, inflation rate, and the dates of large token unlocks that can flood the market.
- Is it actually decentralized? How many validators or miners are there? Can one company freeze it or change the rules?
- How liquid is it? Daily trading volume, and which major exchanges list it. Thin markets swing hard and are easy to fake.
- Has the code been audited? Independent security audits, and any history of hacks or exploits.
- Who's promoting it, and are they paid? Sponsored videos and affiliate links are disclosed in the description. Read it.
- How did it do in the last downturn? Coins that survive bear markets are a different breed from the ones that vanish.
- Can you explain why you'd hold it? If the only reason is “it'll go up”, that's a bet, not a thesis.
The red flags we see most
- Guaranteed returns, or any return stated with certainty.
- Countdown urgency: “last chance”, “before it's too late”.
- Price targets with no date attached, which can never be wrong.
- Anyone who won't show a track record. We keep one for them.
Go deeper
Types of crypto asset explains why a memecoin and a protocol are different instruments. How to value a token covers the numbers, and which are easiest to fake.