Airdrop tokens often experience volatility right after distribution, as many recipients sell. For long-term value, assess the project's utility, team, and community engagement. Strong fundamentals usually drive sustainable growth.
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Check the project's legal documentation, including its KYC/AML practices, and ensure it aligns with local securities laws. Look for compliance with tax regulations and whether the project is registered in crypto-friendly jurisdictions. Legal clarity ensures the project operates within acceptable frameworks.
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Market adoption is a key factor for the success of any cryptocurrency project. Start by evaluating whether the project has formed partnerships with established companies, institutions, or influencers that can drive real-world use cases. Check if the project has integrated its technology into existing industries or has collaborations that improve its utility beyond the crypto space, such as e-commerce platforms, fintech solutions, or supply chain management. Also, assess the project's ability to onboard non-crypto usersβdo they offer simple user interfaces or provide incentives for early adopters? Projects that build strategic partnerships and demonstrate practical use cases in the real world are more likely to achieve sustainable growth and mainstream adoption.
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