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Fernanda_aureli
@fernandag
To analyze a cryptocurrency project using financial principles, start by evaluating its market fundamentals: assess the supply-demand dynamics, total and circulating supply, and tokenomics. Next, examine the project’s value proposition—does it solve a real problem, and is there a viable use case? Apply risk-return analysis: investigate volatility, historical price trends, and potential ROI against market risks. Use discounted cash flow (DCF) if applicable, adapting it to estimate future utility or revenue streams. Scrutinize the team and governance—financial stability often ties to credibility and transparency. Leverage portfolio diversification theory to see how it fits within broader investments. Finally, cross-check with market sentiment via web and X posts for hype versus substance. Combining these tools offers a structured financial lens to assess crypto viability.
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