How it works
A useful process starts with primary documentation and on-chain evidence, then checks whether the token is necessary to the system and who controls upgrades or large allocations.
What to check
Read the official technical docs, governance process, token issuance schedule and audit history. Treat influencer claims, anonymous screenshots and exchange listings as weak evidence.
- Start with primary documentation
- Separate protocol from token
- Check governance and issuance
Limits and risks
Complexity can create an illusion of quality. A project can have sophisticated technology while offering poor token economics or weak governance.
Primary sources
Bitcoin Developer Reference↗Ethereum developer documentation↗FATF: Virtual Assets↗General information only. Investment products can lose value, and terms, fees and regulation can change.