Diversification is for people who don't know what to invest in. If you did your research and decided to put money into a project, it's because you know it will go up.
Otherwise, you're just a gambler, not an investor.
If having a 'portfolio' full of crap is your way of being a 'smart investor,' go ahead.
I don't think you are correct mate. Doing your research doesn't limit you to only one project, you can actually do your research on 2 or even more projects and then decide if you would be going for it or against it.
Some people just believes in Bitcoin and nothing else and that is very fine while some loves to diversify after doing their own research and that is also fine.
In addition you can do your research on one or more projects and things still goes bad, you don't determine the outcome but a good research puts you at an advantage.