x
"Everyone has loved watching Bitcoin explode to new all-time highs, but many are now wondering when altcoins could be next. And while some have seen explosive rallies of their own, most have been going down and to the right for years.
This has many people wondering if their cryptos could pump too, or if they’re really just bagholding a load of dead coins or tokens.
If this sounds like you, then fear not. Today, we’re giving you the tools you need to determine if your crypto is simply hibernating, or if it should be buried six feet deep."
~ Coin Bureau
Many investors are left wondering if their altcoins are dead or simply waiting to spring back to life, especially as Bitcoin has surged while most altcoins continue to fall. The video explains that price action can be deceiving, as it is normal for altcoins to trend downwards for months or years before a massive rally. To determine a crypto's health, one must look at its underlying fundamentals. For Layer 1 and Layer 2 projects, this means checking on-chain activity using a blockchain explorer, looking for rising metrics like the number of active wallets and daily transactions. For decentralized applications (DApps), investors should check sites like DApp Radar or DeFi Lama for increases in active wallets or Total Value Locked (TVL). Additionally, the project's token must be easily accessible to buyers, which requires listings on multiple centralized exchanges or on decentralized exchanges on fast and cheap chains.
Other crucial factors include the project's financial "runway," which is the amount of money it has from previous funding rounds to spend on development; a longer runway indicates the potential for future product catalysts. However, any selling of the project's tokens to fund this runway should be clearly justified. Investors must also track the developer activity on platforms like GitHub for frequent code commits and assess community engagement on social media, where a high level of likes, comments, and shares is a positive sign. Finally, upcoming milestones on a clear, measurable roadmap are important, and traction from crypto media on these announcements can signal future investment attention. The video cautions against "zombie" projects, which are dead coins with low liquidity that can experience manipulative, short-lived pumps by crypto whales. If a project lacks these positive signs, cutting losses and using the experience to refine one's investment strategy may be the best option.
0:00 Intro
0:33 On-Chain Surface-level Analysis
3:23 Runway
5:23 Developer Activity and Community Engagement
7:04 Roadmap And Milestones
9:24 Why Zombie Cryptos Pump
11:16 What To Do If Your Crypto Is Dead
Source - Coin Bureau YouTube: https://www.youtube.com/watch?v=inR1Rgd0iPo
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
