Fundamental Analysis of a Blockchain Company. Be an Effective Blockchain Investor

  • Kepler Finance
  • Dec 05
  • Articles
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Even though countless unique investment strategies exist, almost all of them incorporate the foundational concepts of fundamental analysis strategy. Of the three pillars of a market analysis strategy, fundamental analysis exist as an equal to technical and sentiment analysis and therefore key to any approach to investing that is considered fundamental to investor success.

Explaining fundamental analysis

Overall, fundamental analysis is made up of the many disparate, yet related elements that drive pricing in traditional markets, which include measures related to dividends and earnings, among many others. However, crypto-assets make up a market that is so new, that is nearly impossible to gather enough meaningful historical data to, in turn, make meaningful forecasts for its future. In other words, it is impossible and inadvisable to give any tokenized company any sort of trustful valuation because the entire market is in its infancy. Due to this, explaining fundamental analysis in this particular context of investment management can seem very difficult.

At the same time that this is true, several of the top financial analysts and economists are hard at work on experimental frameworks with the aim of providing trustable models to accurately measure the current market conditions and it has been exciting to monitor their work as it goes. With this, it is however, necessary to remember that even the most unique tokenized projects can be put through the same process as running a fundamental analysis on a more traditional company. For this reason, we have compiled a short list for you below with recommendations on how to invest in blockchain projects, despite the crypto space’s newness.

Fundamental analysis strategy

First and foremost, you should begin with the first three considerations below.

Look for teams that not only prove themselves with meaningful GitHub commits and real technical results, but also with business prowess in other areas like marketing and sales. At the same time, make sure they have blockchain experience. Perhaps even more importantly, are these people working on other projects? Do they truly have the time needed to help this one succeed? With all of this, make sure people’s backgrounds match their current positions. For example, if the product manager has no coding experience whatsoever, that can be a drawback related to the project’s chances of success.

While doing any sort of research on teams, it is important to cross-reference your findings across several reputable sources. Linkedin is one of the key sources due to its reputation as the top professional social network.

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In-depth blockchain teams analysis

Keep in mind that doing your due diligence of blockchain teams does not end with the questions above. Once you have verified these foundational details about the backgrounds of blockchain teams, you can move onto more narrowly focused research areas.

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