Due diligence can sometimes be hard to achieve when little information is available.
But identifying green and red flags in crypto projects doesn't have to be complicated.
Here's how 🧵
1/ Green Flags
Security audits
Audits guarantee that the core project team does not reserve the right to issue new tokens outside the publicly disclosed amount or suddenly assume control of user tokens.
2/ Existing user base
A project with hundreds of thousands of existing users before releasing its tokenomics arguably has an existing business model that would last into the foreseeable future.
Many believe the metaverse will help shape a new digital future.
But contrary to popular belief, the metaverse dates back almost 200 years.
A short history of the metaverse 🧵
1838
Sir Charles Wheatstone outlined the concept of "binocular vision," where you combine two images, one for each eye, to make a single 3D image.
1935
American science fiction writer Stanley Weinbaum published the book Pygmalion’s Spectacles. The main character explores a fictional world using a pair of goggles that provide sight, sound, taste, smell, and touch.
Crypto has introduced an innovation that is looking to get a piece of the pie.
Automated Market Makers 🧵
1/ What is an AMM?
AMMs were initially introduced by Vitalik Buterin in 2017.
An AMM is a type of DEX protocol that relies on a mathematical formula to price assets. Instead of using an order book like a traditional exchange, assets are priced according to a pricing algorithm.
2/ An easy way to understand AMM-based exchanges is to consider how they differ from traditional exchanges:
Traditional exchanges require buyers and sellers to meet at an overlapping price point on a centralized order book.
In contrast, AMMs do quite a few things differently.