Crypto bear markets suck. Or maybe not? Sure, bull markets are fun – everything is pumping, even rubbish projects keep going up in value and everyone is making money every day (well, kind of… maybe almost everyone and almost every day). But the reality is that if you’re jumping into projects during the bull run, you’re already late to the game… sometimes even very late. The trick is to be able to find projects with potential while the market is quiet.
Let me give you an example of a project I’m currently bullish on to show you how I analyse projects and decide if they’re worth investing in or not. Of course, it should go without saying that regardless of the amount of research you do, there’s always a risk that a project can flop – there’s never a 100% guarantee when it comes to investing and this is especially true during a bear market. But equally, those who do their research and take well-calculated risks, are the ones who will then benefit the most in the bull market.
The project I want to talk about today is Taroverse – a multi-game metaverse of play-to-earn games. Here are the four reasons why I am bullish on it.
Concept
Any concept that’s new, interesting, or likely to draw in a lot of new users is definitely a big plus. The p2e model is quite common but let’s not forget that this is still a relatively new category of games so there’s still plenty of room for development. In the case of Taroverse, it has an interesting concept of linking multiple games, rather than being just a single p2e game.
The central point is an island where you can play mini-games such as archery or monster hunt, but it also acts as a ‘portal’ to other games within the Taroverse ecosystem. As it’s usually the case, you can have various in-game NFTs (for example various heroes) but what’s pretty cool is that you can not only use them in all games within this ecosystem but also stake them for passive income. In other words, Taroverse has some built-in DeFi mechanics, which in turn may help to onboard more people into the DeFi space, which is pretty cool in its own right, but the main benefit here is the fact that you can earn in multiple ways – not only actively by playing but also passively by staking.
Team
The team has 15 full-time people and the core team is fully doxed. Sure, I know there are successful projects out there, which have un-doxed teams. Famously, the Bored Ape Yacht Club team was not doxed for a long time and it clearly didn’t stop the project from being immensely successful. However, at the same time, there are plenty of other projects which were adversely affected by having an un-doxed team. Personally, while I don’t immediately write off a project purely due to an un-doxed team, it is a potential red flag for me. Or to put it better – it’s a plus if the team is fully doxed and I can see that they’re competent and credible. It’s just that additional layer of assurance that the team is serious and the project is more likely to do well.
Roadmap and activity
A solid roadmap is a must. But what’s more important to me is whether the team is actually delivering on their promises. And what’s even more important in a bear market is whether the team remains active and the project keeps moving forward. Bear markets are rough for everyone and while they present a perfect opportunity to build, some teams will give up for various reasons, so it’s really important to keep track of the progress and comms. As long as the project keeps moving forward, the team remains active and responsive, the project has the potential to do well in a long term. It’s always worth to follow the project on Twitter and join their Telegram and Discord to keep up to date with the developments.
Tokenomics and token price action
You should always check how many tokens are going to be issued, when, and to whom. If the token is already listed on an exchange, it’s important to check its price movements. The chart below shows TARO token price since it was listed in late April.
We can see here a very healthy price action, especially if we consider that we’re deep in a bear market. There was an initial pump but it was only around 2.5x which is very reasonable. Some tokens pump like crazy straight after listing but this is very often completely unsustainable and the price is likely to come down a lot soon after. What’s good to see here is that once the price came down, it still stayed above the initial listing price and it’s been very, very steady which is very reassuring, especially given the current, rather bumpy market conditions. Another thing to consider is the market cap, which is just over 2.5 million USD at the time of writing. This means that the project has a lot of potential to grow – we’ve seen many crypto gaming projects reaching valuations in 100s of millions USD so it’s possible for Taroverse to do 50-100x once the market properly picks up again.
To conclude, as I’ve said earlier – no amount of research gives a guarantee that a project will be successful but the points listed above are certainly a good start and hopefully I illustrated it well using Taroverse as an example. Yes, the market is currently rough and will likely stay this way for a while but if you keep finding projects like this and enter at the right time, you will very likely to do well in the next bull run.
Disclaimer
The content covered in this article is NOT to be considered investment advice. I’m NOT a financial adviser. These are only my own speculative opinions, ideas, and theories. Do NOT trade or invest based purely upon the information presented in this article.