This last year has been a wild in the cryptocurrency space. Thousands of new coins have entered the market, and many projects aspire to be in the ranks of Bitcoin, Ethereum, and other top cryptocurrencies.
With many of these projects investing BILLIONS of dollars into marketing, the lines between true progressive development, vaporware, and centralization are easily blurred. Many techniques of advanced marketing are specifically designed to spark subtle, subconscious and emotional responses, which in turn, strongly influence our decisions.
This begs the question:
How do we as investors, find highly-undervalued cryptocurrency investments?
The task is not an easy one. We need criteria that can be used to objectively and systematically evaluate EVERY project, and remove marketing-induced emotion from the equation. We must ask questions which filter out all of the vaporware, scams, and “empty promises” that plague the entire blockchain market right now.
Sounds good? Lets get started.
***Note: We will always be 100% transparent with our readers. This article is solely an opinion on how to filter through already established marketing campaigns, find out which cryptocurrencies are undervalued, and illustrate why BitBay ($BAY) is one of them. This is not an exhaustive list of ideas either. If you come up with any additional ideas for criteria, please let us know in the comments! This is not to be considered investment advice. If you make any investment decisions based off of the criteria below, please do so at your own risk.
Does the project bring an INNOVATIVE new idea to society?
If so, how does that new idea differ from others that are currently out there? There are many altcoins that have been created to mimic an already existing and established system. This poses a tremendous challenge for long term success, as the current working or adopted system/idea already has a first-mover advantage. This momentum is not easily swayed by new competition to its market. We’re talking Newton’s Law at its core. The project must be completely different and innovative in order to disrupt or change the path of the previous established system’s use.
What specific problem in society does the cryptocurrency solve? How many people share that problem?
If a coin does end up bringing a new idea to the world, that’s great. However, what problem does that idea actually solve? There is an ENDLESS SEA of brand new ideas floating around in the world. Whilst only the smallestfraction of those ideas will actually come to fruition.
If we look at new ideas that have been successfully adopted in the past, there is a common trend. They all solve a common problem. They fulfill a need that isn’t currently being met. Each of them create a different and improvedmethod of doing things, which ultimately turns the old method into an inconvenience or problem.
Unfortunately, an altcoin with only a website and a whitepaper is not useful to society. One with TRUE VALUE will have a clear, easy to understand, and transparent solution to a problem that can be directly adopted by the market.
Who are the developers and team members?
This answer requires some in-depth research. We must discover whether or not the team is actually capable to execute their ideas. Do they have the specific skills needed for this idea? Do they have a track record that shows they have been able to execute their ideas before?
With fewer than 500 blockchain developers in existence, where will the thousands of new ICO’s find skilled people to build their product?
There is an expanding number of self-proclaimed “experts” and developers in this newly emerging space. Many of these people don’t have much of a visible track record, if any at all. When you see a coin’s team page that is full of elaborate titles, a couple web searches on each person can quickly reveal whether their accomplishments hold up to their title.
Additionally, this applies to “vanity advisers” and pseudo partnerships. If a project is using these as a cover for a lack of developers, proceed with extreme caution. Many coins have been caught falsely using the names of large companies to promote their coin. To confirm partnerships, you should review that partner’s social media or website for any announcements.
How much progress on development has been made to date?
Once a coin project has some time under its belt, it should also have also made some progress with development. If a coin has an idea, do they offer an actual product that you can download and use, or just a desktop wallet? Or none at all? Have any of the project’s case studies been implemented in the real world, even on the smallest level? What does the project’s github activity look like? Is it nonexistent? Do they allow an inspection of their source code?
***Some projects (such as BitBay) will allow inspection of their obfuscated source code. This allows for thorough inspection of the code’s integrity, but prevents others from cloning it entirely. Once BitBay’s product is complete, its code will be completely open to the public.
Does the team have a solid track record for completing road map items on time?
This one is very important.
Has the project progressed along as promised? Have there been any missed deadlines? This can be a great indicator to the level of team organization surrounding an altcoin project. Looking at a roadmap with vague timelines and “general goals” can translate into a lack of commitment on the team’s behalf. We want to see clear and easy to understand goals with specific datesfor accomplishing them.
For many projects, the roadmap has become a misleading marketing tool instead of a punctual itinerary. To a new investor seeking a place to grow their hard-earned money over time, this is a serious problem. A truly undervalued cryptocurrency should not only lists what they are going to accomplish in the future, but also what they have successfully delivered in the past — on time, as promised.
What is the team’s primary motivation for growth?
It’s time to discover the “why” behind the project. What drives the team to push through the tough times? What gets them out of bed at the crack of dawn, and keeps them up at late night? In this area, we’re looking for tenacity and commitment.
If there are signs that the team is primarily focused on personal financial growth, we could possibly be looking at a project that doesn’t have its users’ best interest in mind. Greed can easily get in the way of development, and limit a project’s true potential.
Hint: The team’s motivation should be directly related to the above “common problem” that the project is working towards solving.
How much of a focus is placed on security?
Security is huge. In this day an age, any undervalued cryptocurrency should provide multiple, highly-secure methods for users to access their funds. The bare minimum would include a web-based wallet, downloadable desktop wallet, and/or cold wallet option. If the only option is to store the coins on a centralized exchange, that should be a red flag.
Hopefully, these questions provide some insight into how to find any undervalued or unappreciated cryptocurrency. Through answering these questions (and many others) we can roughly gauge the intrinsic value of a coin project. When that value is compared with its current market price and history, we can quickly determine whether a certain coin is undervalued or not.
Why we believe BitBay is HIGHLY undervalued right now:
As a decentralized community-based project, the team here at BitBay wants EVERYONE to ask the above questions about our product, and we’d also love to help answer any other questions you might have. With the our revolutionary double deposit escrow, volatility-reducing dynamic peg, and functional decentralized markets, we are eliminating the need for people to trust (both each other and middlemen) on a global level….right now.
Our multifaceted software is free to use, and has been tested with every type of transaction, including real estate. This year, it will also have the capability to integrate into the framework of any company or organization, making it the perfect solution for businesses worldwide.
Since 2014, our primary focus has been development and security. Now that we have a fully functional product, it’s time to shift that focus to user experience and adoption. Most projects (even within the top 20) have focused on marketing and fundraising and first, without any existing product. At Bitbay, we do things much differently, in order to best position our platform for long-term growth.
We’re deeply passionate about this project’s development and success. Our team consists of talented people all over the world, who work relentlessly around the clock to complete roadmap items ON TIME, EVERY TIME.
Want to check out our free contracting software and markets yourself?