About Altcoin Analyst
We provide high quality and easy to understand research on cryptocurrencies.
About Altcoin Analyst
In 2008, the Bitcoin whitepaper emerged, introducing the world to a transformative new technology. A digital currency that operates on a decentralized, trustless peer-to-peer network known as the “blockchain” – a term relatively unfamiliar at the time.
Since then, interest in blockchain technology and its potential use cases has surged. As of January 2023, CoinMarketCap lists over 2 million cryptocurrencies with a combined market capitalization of over 1.7 trillion dollars.
This field has captivated Entrepreneurs, developers, and investors alike, all eager to leverage blockchain’s potential. Several new projects aim to disrupt or create new industries. Others want to solve some of the world’s most complex challenges. Some coins have no practical use case and are created as a joke (a meme coin), an asset with little value, or a potential scam.
New blockchain/cryptocurrency projects are launching every day by entities with varying technical experience, funding, corporate structures, tokenomics, and tech stacks. The number of new projects and the potential of blockchain technology have seen this asset class raise billions of dollars from institutional and individual investors.
However, despite the blockchain’s open source, transparent nature, and the availability of data, it’s difficult to access important information about even the most popular cryptocurrencies.
Most blockchains share their code freely, display all their transactions online, and make every aspect of their business visible to the public. However, accessing this information for even the most popular blockchains is difficult and time-consuming. This data is held in complex databases, hidden in whitepapers, and published across several sources.
These factors make it difficult for the average person to access the data they need to make an informed decision about a cryptocurrency.
why we created Altcoin analyst
We created Altcoin Analyst to give people access to this data.
We run analysis on cryptocurrencies and share our findings in a easy-to-understand reports. We are enabling you to DYOR (do your own research) in minutes instead of days.
We are starting out, but we will eventually deliver high-quality, actionable analysis on hundreds of cryptocurrencies. We want to empower our customers with information, help them learn about this new asset class, and save them time.
Our goal is to release a new study every fortnight. We will cover a variety of projects and deliver unbiased, timely information, assisting you in understanding which projects align most closely with your cryptocurrency objectives.
For information on how we analyze cryptocurrencies, keep reading.
Our philosophy
We evaluate the long-term prospects of cryptocurrencies by studying them as if they were a publically listed company. In order words, we perform fundamental analysis and make that research available. Our research involves looking at the fundamentals of each project, the sector they operate in, or the reason they exist (often referred to as the narrative). We also examine their tech stack, token ownership structure, and the competitors operating in the same space.
Our analysis tries to determine if a cryptocurrency will still exist in ten years and its potential to increase in value. We don't spend much time looking at charts or other technical indicators. The reason is that it's impossible to predict the value of an asset years into the future with technical analysis.
By examining the fundamental elements of a cryptocurrency, we can identify coins and indicate the likelihood of them executing on their vision and becoming a successful business in the long term.
To perform our analysis, we use a variety of data sources, including but not limited to. Querying the databases of the cryptocurrency and the blockchain it operates on, examining developer activity, protocol usage, and value locked. We also leverage other third-party sources to get a 360-degree view. Once we have all the information, we summarize everything in a report you can read in less than 10 minutes.
What do we look at when analyzing cryptocurrencies?
Each study is different. However, we study the following categories across all cryptos to understand their long-term value.
The Overall Project
Its purpose/objectives:
Why the coin exists (the narrative). The problem is it is trying to solve / the need it addresses and the total addressable market.
Who is leading the project:
We study the team working on the project and share their professional history. A team with strong technical and business experience indicates a project’s ability to execute its vision.
Launch Date & Initial Investors:
To see if the project has the financial resources to realize its vision and determine which large VCs are willing to invest early on. Several VCs also offer technical support and mentorship, which can help a project.
Project utility
Usage (transactions & addresses):
Projects with growing user bases (even small ones) perform better over the long term. There are many ways to measure this, depending on the technology. We often use transactions and addresses as a proxy.
Revenue:
The same way you would measure revenue in a listed company. A sign of a project’s potential and profitability
Who is using / Who will use it:
We do this to get an idea of the total addressable market. We estimate the potential number of paying customers or the industry’s size.
Developer Activity:
Developer activity is a proxy for the amount of activity around a project. A project with low or declining developer activity indicates declining interest. Projects need people working on them to deploy new products and updates.
Competitor Analysis:
Several projects often have similar objectives but different strategies, tech stacks, and teams. We will run a competitive analysis on the crypto we study as if it were a listed company.
Buying and Holding
Staking rewards:
Some cryptocurrencies offer staking. You can deposit the coins in a wallet and earn interest; this allows the owner to earn passive income. The terms, conditions, and rates vary depending on the coin.
Exchange availability:
A coin on all major exchanges will have high liquidity and is easy to buy and sell. A coin may have low liquidity on only a few exchanges. However, if the coin is likely to get listed on more exchanges, this will increase the buying pressure and, thus, the price.
Whales:
Understanding how many “whales” (wallets holding a significant percentage of available coins) hold a cryptocurrency is essential. If a project has a small number of whales, then there is a risk that the price could crash due to sell pressure if/when they decide to sell. Conversely, if the whales are actively buying the coin, it could be an early indicator that the price will rise.
Tokenonomics:
Refers to the study of the number of coins currently in circulation, the number expected to be released (unlocked), and the release schedule. Coins with upcoming unlock dates will increase the supply and impact the prices (supply and demand). Other cryptocurrencies try to limit this by destroying coins (a process known as burning).
Security / Vulnerability history:
We want to avoid coins susceptible to hacking/theft at all costs. To do this, we check the history of our coins to understand if there have been any attacks, what happened, and what the team did to solve the issue. We also look at the security process they have in place to discover vulnerabilities and prevent attacks.
Roadmap:
Like any digital product, we want to ensure that the developers working on this project have updates, new features, and security enhancements they plan to deploy. A project without a roadmap will quickly become technologically obsolete.
Interest in the Project
Interest among the crypto community
We want to ensure that coins are popular amongst the crypto community. Many people discussing the project in online forums (especially influencers) will lead to buying speculation.
Social media presence:
We use this as a proxy for interest. We do this by making comparisons of follower bases with competitors’ coins and coins of similar market cap.
YouTube Influencers:
Several influencers review coins on YouTube and share their recommendation. Some of these channels have over a hundred thousand subscribers. These reviews can impact the price of small to mid-market cap cryptocurrencies.
Disclaimer
The information provided on this website is intended for informational purposes only. We strive to present accurate and reliable information, but it should not be construed as financial advice. We are not financial advisors, and nothing on this website should be considered as such.
Our research content reflects our unbiased opinion based on available data and analysis. However, we cannot guarantee any specific outcomes or results.
Trading cryptocurrencies involves significant risk, and individuals should conduct their own research and seek professional advice before making any financial decisions.
By using this website, you acknowledge and agree that you are solely responsible for any actions you take based on the information provided herein.