> Personally, here are a few things I always check:
> Is the whitepaper solid and does the use case make sense?
> Is the team transparent and do they have real, verifiable identities?
> Does the project have an actual community and utility?
> What’s the tokenomics like? Is there an unfair advantage for devs?
> Just because a project has a huge following on Twitter or Telegram doesn’t mean it’s safe. **We need to be careful — it’s our money at stake.
> How about you guys — what are your personal tips or red flags when doing research? Feel free to share your experiences.
These points are great but they are not a guarantee that the project will not turn into a shitcoin. Anyone can contract an expert to write a wonderful whitepaper, bot the community and employ a few mods to keep it robust but at the end deliver nothing and walk away with all the contributions raised in TGE. I have seen it happen that is why it is recommended to invest only what you can afford to lose when you are investing in anything apart from Bitcoin.