This is where most tokens end up. A short, stellar life, followed by a plunge from glory to an ignominious end. Like six feet under, pushing up daisies. (Probably NFT daisies, at that).
How do you find a token that evades the crypto crematorium? That doesn’t need a token tombstone?
Look for these four things for token longevity:
- Community — you want to ensure the project’s community has been built up over time with organic growth. Like compound interest, the same principles apply to community growth whereby allowing the additional 2 months of compounding has an outsized effect on the final outcome. Use the compounding calculator on our user app to see exactly the effect of the final 60 days. Avoid projects which have built a huge community overnight, as these usually become irrecoverable once the hype dies down.
- Team — a solid team network who are always visible in the public domain with at least one doxxed member to avoid outright rug-pulls. I have no doubt these people will face justice and it’s only a matter of time.
- Token Utility — does the token serve any other purpose than being used for a single protocol? You should consider the team’s roadmap to find more clues about their future plans to fully understand it’s full value proposition.
- Promises — It requires careful monitoring to ensure the team is following through with their promises. One or two broken promises is usually a red flag. Not delivering on time can be an exception if the devs are truly making an effort to ensure everything is 100% right. After all, it’s your money that’s on the line so that should be taking ever care in doing so.
- Holders — Consider the network and watch closely to gauge the quality of the project’s marketing activities including KOL’s they engage. Are there any notable partnerships being planned or formed? Partnerships with well established communities will simply attract good quality participants to support the project’s longevity and minimize FUD.
Always DYOR because at the end of the day, you will only have yourself to blame if things don’t turn out as expected.
To avoid the uncertainties which DeFi protocols may bring, GuilderFi have implemented an industry first circuit breaker called #SafeExit. This allows token holders to redeem their original purchase value (denominated in USD) with an additional 6.25% risk premium which we reward the earliest supporters of the protocol.
Learn more about the #SafeExit safety feature which helps our friends sleep well at night.
Learn, Earn & Thrive — With GuilderFi
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