In this article, we explore liquid staking protocol StakeStone's key features, the STO token launch, tokenomics and how to trade STO on Bybit.

StakeStone (STO) is a next-gen omnichain liquidity infrastructure protocol designed to optimize yield and cross-chain liquidity. Its introduction of liquid yield-bearing versions of ETH and BTC — STONE and STONEBTC — enables users to earn sustainable yield while enhancing capital efficiency. This article explores StakeStone’s architecture, core assets, founding team, tokenomics and recent market performance.

 is a decentralized liquidity infrastructure protocol that issues liquid, 

-bearing assets like STONE (Ethereum) and STONEBTC (Bitcoin). Designed for omnichain integration, it empowers users and protocols with composable 

 solutions and efficient cross-chain liquidity.

Launched in 2024, StakeStone was built to address the fragmented and capital-inefficient nature of ETH and BTC staking by introducing secure, flexible and modular primitives. StakeStone’s mission is to maximize on-chain yield while ensuring deep liquidity across ecosystems.

StakeStone was founded in 2023 by a team of DeFi-native builders led by Charles K, a crypto veteran with over 10 years of experience in centralized exchanges (CEXs), hardware wallets and DeFi infrastructure The core team includes Rose Li, Chief Strategy Officer, and Ivan K, Chief Marketing Officer.

The project has secured funding from notable crypto funds, including Polychain Capital, Binance Labs, OKX Ventures, Amber Group, HashKey Capital and Bankless Ventures. These backers not only provide capital but also strategic ecosystem access — positioning StakeStone as a serious player in omnichain liquidity and yield infrastructure.

StakeStone converts ETH and BTC into liquid, yield-bearing assets — STONE (ETH) and STONEBTC (respectively) — through a modular and omnichain framework. When ETH is staked, it flows into the StakeStone Vault and is allocated to the Strategy Pool, and STONE is minted via the Minter.

Yield is generated through strategies such as:

Users can deploy STONE across chains via the 

 (LP) rewards, with optional LP locking for enhanced returns. SBTC is the liquid BTC asset mirroring Bitcoin’s value, with STONEBTC adding a yield layer to BTC and unlocking passive income without sacrificing liquidity.

StakeStone implements key security measures, including the following:

STONE (ETH): Omnichain yield-bearing asset

 derivative. It’s minted when users stake ETH, and is backed by underlying yield from stETH, EigenLayer restaking and additional DeFi strategies.

STONE supports seamless cross-chain bridging, enabling deployment across supported networks and STONE-Fi Pools for additional rewards. Users benefit from passive yield, cross-chain utility, governance participation and on-demand liquidity.

SBTC is a liquid Bitcoin asset that mirrors BTC’s value and enables seamless use within EVM-compatible chains. STONEBTC, on the other hand, enhances SBTC by adding a yield layer, empowering users to earn yield from BTC-based strategies while preserving liquidity.

 utility by unlocking native BTC liquidity and enabling new use cases, such as cross-chain lending and borrowing, LP participation in BTC-based DeFi pools and composable integration across multichain DeFi protocols.

Together, SBTC and STONEBTC aim to position Bitcoin as an active capital layer across Ethereum and beyond.

 of StakeStone, with a total supply of 1 billion. It underpins protocol governance via OPAP proposals, voting-escrowed STO (veSTO) staking and 

Emissions are set to taper gradually until 2031, aligning incentives with long-term ecosystem growth.

According to CoinGecko, as of Apr 24, 2025, 

with a market cap of over $25 million. The token has recently shown strong momentum, rallying 85.4% over the past two weeks. Furthermore, StakeStone’s value could benefit from various catalysts, such as the rise in demand for 

 the STOUSDT Perpetual futures contract in the Innovation Zone, with up to 20x leverage.

 a Bybit account, complete identity verification and fund your 

 using crypto deposits or fiat currencies. 

Intermediate

StakeStone STO.png

StakeStone (STO): Cross-chain liquid staking protocol

The MANTRA (OM) token’s wild crash on Apr 13, 2025, shocked the crypto world. Discover the causes, fallout, and what’s next in MANTRA’s road to recovery.

In the morning and daytime hours of Apr 13, 2025, the MANTRA blockchain's native token, OM, sat at a respectable market cap of $6 billion, making it the third-highest-ranked cryptocurrency in the 

 (RWA) category, the area the platform specializes in. Everything seemed like smooth sailing for the token.

Then, just after 6 PM UTC, the price of the OM token suddenly began to free-fall, declining from nearly $6 to about $0.50 in the space of just two hours.

A project that started the day as one of the top players in the RWA field was now worth 90% less as the evening approached. OM's abrupt, sharp crash immediately caught the market's attention, with speculation of a 

However, MANTRA's CEO, John Patrick Mullin, immediately sprang into action for PR damage control on social media, reassuring the public that the team members weren’t dumping OM tokens at all. Instead, MANTRA's founder and CEO alleged that deliberate actions of some 

 (CEXs) had caused the catastrophic plunge.

As of our coverage date of Apr 23, 2025, this is a developing story. In this article, we’ll establish what actually happened, who's involved and what awaits the OM token in the foreseeable future.

 decentralized network dedicated to RWA tokenization and utilization in compliance with real-world regulatory requirements.

 It features high scalability and low transaction fees. The project is one of the earliest initiatives dedicated to RWA use via blockchain technology. Originally, MANTRA debuted as a 

 (ETH) in August 2020. In October 2024, the project migrated to its own dedicated Layer 1 platform, the MANTRA Chain. The MANTRA blockchain is based on the Cosmos SDK framework, and is part of the wider 

The MANTRA ecosystem's main products include MANTRA DEX, a 

 (DEX); a digital identity (DID) management tool; a compliant token development and management solution; and a comprehensive compliance and permissioning system. MANTRA has also partnered with global powerhouses like Google Cloud, and with DAMAC Properties, one of Dubai's most prominent developers, to propel innovative solutions for 

Starting in late 2024, right after its own dedicated mainnet launch, MANTRA had become a significant player in the RWA corner of 

 (DeFi). By late February 2025, the platform’s native OM token had climbed to a value of nearly $9, with its market cap peaking at around $8.2 billion. Before the fateful events of Apr 13, 2025, OM was the third-highest-capped crypto in the RWA category, trading at $6.27, with a market cap of slightly over $6 billion, according to the CoinGecko portal.

In the evening hours (UTC time) of Apr 13, 2025, OM began to lose its value precipitously, dive-bombing from over $6 to about $0.52 in the space of two hours. The token’s market cap fell to slightly under half a billion dollars — a loss of more than 90%.

CEO John Mullin was quickly online, reassuring the crypto community that no team member had sold their OM holdings, and that this wasn’t a case of the bad ol’ rug pull. Instead, Mullin alluded that after OM tokens were moved to two leading CEXs (Binance and OKX) to use as collateral, the exchanges initiated a cascade of 

 of positions backed by the token. Both exchanges refuted the allegations, and connected OM’s price collapse to its recent unusually high price 

, and significant tokenomics changes made to OM in October 2024 that greatly undermined its value.

As a chain of liquidations took place, the token’s price started to plummet, causing significant panic that quickly led to further price drops. The situation only stabilized closer to the end of the day, with OM’s price remaining under $1. As of Apr 23, it’s trading at $0.5543 — a far cry from its rate of over $6 just two weeks ago.

After investigating, crypto analytics firm Lookonchain concluded that 17 wallets had deposited 43.6 million OM tokens (4.5% of the token's circulating supply) into the implicated exchanges. Two of these wallets are believed to belong to Laser Digital, one of MANTRA's investors. Another investor in the project, Shorooq Partners, is also suspected to be among the 17 wallets. Both Shorooq and Laser Digital have denied the allegations.

Although the price plunge was immediately compared to the 2022 collapse of the 

 (LUNA) blockchain, many analysts point out that the two crashes are fundamentally different. Terra's crash resulted from structural abnormalities in the 

 regulating UST, the project's stablecoin. In contrast, OM's fiasco is suspected to be the direct result of market-driven manipulation by 

, and possibly exchanges. No security breach, disruption to services or data, or other adverse structural events have occurred on the platform.

While this development is unprecedented for the project, MANTRA has been embroiled in other controversies throughout its history. One of these was its 

, first announced in August 2024 and then delayed multiple times. Around 50% of the wallets believed to be bots were cut off from the airdrop list. However, many considered the bot-culling process to have been conducted without much proof.

There have also been reports of vote rigging in the project's governance system in a bid to obscure MANTRA’s centralized model of profit allocation. Additionally, some analysts have accused the project of "forced bridging" to manipulate the market price. Platform users had to migrate their Ethereum-based OM tokens to MANTRA's native OM tokens via 

, which would increase gas fees and allow the project team to control the token's circulation pace.

How is MANTRA (OM) headed toward recovery?

MANTRA’s CEO rapidly reassured users that the team is now working hard to jump-start the token’s recovery. On Apr 14, 2025, Mullin unveiled plans to initiate a buyback scheme, along with the intent to burn all OM tokens held by the project team. The team's supply totals 300 million tokens, representing about 17% of the total supply.

He also denied factually incorrect assertions circulating online that the team effectively controls 90% of OM's supply. Mullin further assured the public that no large-scale selling events by investors have occurred.

As OM’s value has stayed firmly under $1, it remains to be seen how these PR efforts — as well as the planned buyback and burn — will affect the token’s future.

 as a swap pair with USDT, or on the Derivatives market as the 

Naturally, given the ongoing situation with the OM token, buying OM is at your own discretion, as right now the token is truly for the adventurous and brave at heart.

As of Apr 23, 2025, the OM token is trading at $0.5543, 93.8% lower than its ATH of $8.99 on Feb 23, 2025, and 3,138.8% higher than its ATL of $0.01726 on Oct 12, 2023.

Curiously, most crypto price prediction portals are optimistic about the OM token's long-term prospects. DigitalCoinPrice 

 of $1.81 in 2027 and $2.82 in 2030, whilePricePrediction 

It's hard to verify all the allegations flying around regarding the involvement of exchanges and key investors in the MANTRA OM incident. What matters at this stage is that the project team has been quick and proactive in injecting transparency and clarity into the situation.

The free fall in the token's price seems to be over by now. In fact, OM’s decline was over within hours of the incident. Moreover, unlike Terra's LUNA and UST coins, OM hasn't become worthless. All these factors point to potential stabilization and recovery ahead. The question now is: Will the pace and magnitude of the recovery be enough to save the project in the long term? At this early stage after the collapse, few people could answer the question with confidence. We'll eagerly await the developments over the next few weeks to see if MANTRA finds its way out of the woods. 

mantra om crypto.png

MANTRA (OM): Understanding its wild ride and road to recovery

In this article, we explore WalletConnect's features, its native token (WCT) and how you can trade WCT on Bybit Spot and Futures.​

WalletConnect is an open source bridging protocol that facilitates secure connections between digital wallets and 

 (DApps). With over 38 million unique active wallets and 57,000 supported apps, it’s getting noticed by the crypto community. In this article, we explore WalletConnect's features, its native token (WCT) and how you can trade WCT on Bybit.​

 protocol that allows users to connect their mobile wallets to DApps via QR code. This eliminates the need for browser extensions, and enhances security by keeping 

The protocol supports a wide range of wallets and DApps, making it a versatile tool for users navigating DeFi and web3.

 is essentially a decentralized infrastructure that facilitates a uniformed way for users to easily connect their crypto wallets with thousands of DApps. It operates through a network of

 that relay messages, ensuring reliable and secure connections. The network's design emphasizes scalability and resilience, catering to the growing demands of DeFi. 

When a user initiates a connection between their wallet and a DApp, WalletConnect establishes a secure session through a relay server that enables encrypted communication, allowing users to interact with DApps directly from their wallets. 

The network's architecture ensures that messages are transmitted efficiently, maintaining a seamless user experience.​

The WalletConnect ecosystem comprises various stakeholders, including node operators, wallet providers and DApp developers. Node operators play a crucial role by maintaining the network's infrastructure and relaying messages. 

To incentivize participation, the network implements a rewards mechanism whereby node operators earn WCT tokens, based on their performance and contribution. Prominent organizations like Consensys, Ledger and Figment are among the network's node operators, underscoring its robustness and reliability.​

 is the native utility and governance token of the WalletConnect network. It has a total supply of 1 billion, 

Initially, WCT is nontransferable to ensure that tokens remain within the WalletConnect ecosystem, supporting its focus on network functionality and development. Based on discussions within the community, transfers will be enabled based on community consensus and future governance decisions.

Where to buy the WalletConnect token (WCT)

 on Bybit Spot, and as a Perpetual contract with up to 75x 

. Bybit provides a secure and user-friendly platform for buying and selling WCT, allowing users to participate in the WalletConnect ecosystem. 

How to trade the WalletConnect token (WCT) on Bybit

Bybit's platform ensures efficient execution and provides various tools to assist users in their trading journey with ease.​ 

walletconnect wct.png

WalletConnect (WCT): Bridging web3 beyond wallets and DApps

Circle has launched the Circle Payments Network (CPN), a global payment solution designed to streamline cross-border transactions using stablecoins like USDC and EURC for real-time settlement. 

The S&P 500 rose 2.51% as investor confidence improved following President Trump’s support for Fed Chair Powell and hints of easing U.S.-China trade tensions, despite tempered optimism and Tesla’s earnings miss. Gold rebounds toward $3,400 as the US Dollar weakens and investor caution lingers over US-China trade and Fed concerns. Technicals suggest a possible pullback, with focus shifting to upcoming S&P Global PMI data. The Coindesk Indices, which tracks the broader crypto market, rose 7.46%, with Bitcoin and Ether up 4.68% and 7.70%, respectively, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is DEEP, up 122.1%, following the launch of DeepBook v3.1 on Sui, which unlocks permissionless pools, enhanced balance management, and cost-efficiency for DeFi.

DeepBook (DEEP), launched on July 12, 2023,  is Sui’s native liquidity layer, using a central limit order book to enable high-throughput, low-slippage, and low-fee trading. 

, introduces several key upgrades: permissionless pools, revamped fee mechanics, and enhanced balance management. These changes make DeepBook more accessible, composable, and cost-efficient for DeFi users. Permissionless pools allow anyone to create custom trading pairs, while the enhanced balance manager supports third-party liquidations and improves protocol stability and user experience.

Check out the latest prices, charts, and data of 

, a global payment solution designed to streamline cross-border transactions using stablecoins like USDC and EURC for real-time settlement. CPN offers faster, programmable, secure, and always-available money movement for financial institutions. It supports services like invoice payments, remittances, treasury services, and payroll payouts. Over 20 design partners, including dLocal, WorldRemit, and BVNK, are contributing to building a more efficient global payments infrastructure.

Yesterday, Bitcoin spot ETFs saw $719.2M in total inflows, with $654.1M from non-GBTC funds and $65.1M from GBTC.

 its incentivized testnet, allowing users to earn $SO tokens by testing its cross-chain lending platform. By supplying and borrowing assets across chains and completing quests, participants earn "Seeds," which will convert to $SO at TGE. Powered by LayerZero, Soul aims to unify liquidity across blockchains.

Beginner

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Circle launches Circle Payments Network for faster, secure global transactions using stablecoins

Investing

Crypto Investment Guide

Crypto

Crypto fundamental analysis is the first step to formulating a successful trading plan by assessing the asset's intrinsic value. Here's what you must know.

crypto_fundamental_analysis_1.jpg

crypto_fundamental_analysis_2.jpg

Investing in cryptocurrencies requires careful research and evaluation of all available metrics. Most projects provide ample information about the purpose of the cryptocurrency, 

, the team behind the project, and its development to date. Using a combination of quantitative and qualitative factors, you can derive a view of cryptos using fundamental analysis. 

A myth among new entrants is that cryptocurrencies cannot be valuated based on fundamental analysis due to high market volatility. However, even though the asset may be subject to the whims of global traders, one can still form an educated opinion on its value.

Understanding fundamental analysis helps you evaluate whether a crypto is worth buying or selling. In this article, we’ll show you how to analyze cryptocurrency using fundamental analysis, including the key factors to consider, and look at how cryptocurrency analysis is different from traditional asset analysis. 

: While a cryptocurrency is a digital token issued by a blockchain project, for this article’s purposes, the terms cryptocurrency, project and token are used interchangeably.

 determines the intrinsic value of an asset, or in other words an objective measure of its worth. Evaluating underlying information about a cryptocurrency project provides guidance on whether it’s undervalued or overvalued as an asset. A cryptocurrency that’s undervalued may present a buying opportunity, whereas one that’s overvalued may indicate it’s time to take profits.

Crypto markets are notoriously volatile. Even established currencies like 

 are subject to sudden fluctuation. Investing in newer cryptocurrencies comes with significant risk unless you understand what you’re investing in. 

Performing fundamental analysis enables non-technical investors and seasoned traders alike to trade market movements with confidence. Armed with fundamental analysis, traders can create informed strategies with better odds of profitability.

Fundamental analysis is distinct from technical analysis, which is typically used by traders and investors who have an interest in forecasting a cryptocurrency’s market direction through the use of 

How Is Crypto Fundamental Analysis Different?

, which is often considered the bible for securities valuation. To this day, investors analyze financial assets using the metrics explained in this classic book. For example, when evaluating stocks quantitatively, you can use earnings per share (EPS) or the price-to-earnings ratio (PE ratio) to determine the intrinsic value of a share.

So far, cryptocurrency isn’t subject to international regulation when it comes to reporting requirements, unlike publicly listed companies that often have to issue quarterly reports using recognized accounting standards. Traditional business metrics, such as liquidity ratios that look at the solvency of conventional companies, are thus irrelevant in the cryptocurrency market. As a result, crypto markets can’t be assessed using the same traditional fundamental analysis indicators used for traditional businesses.

Within crypto markets, all transactions can be publicly “audited” on a blockchain, and the founding team must keep the community informed of their road map. Conceptually, though, investors still need to develop insights into each underlying project. Hence, a different framework has to be set up, with metrics utterly distinct from those used for analyzing traditional markets.

Factors to Consider When Analyzing Crypto Fundamentally

The main goal of cryptocurrency fundamental analysis is to reduce investor risk and evaluate the profit potential of the asset. 

Fundamental analysis can be applied in three broad categories.

 is a valuable resource, providing users with on-chain metrics, or data provided by the blockchain. However, pulling information manually from raw blockchain data can drain time and resources. Fortunately, a range of 

 (APIs) provide tools to empower investment decisions. Leading crypto exchanges have developed reporting tools that provide an abundance of actionable information, such as the number of active users, total transactions and transaction value.

The most fundamental metrics to a cryptocurrency’s fundamental analysis are 

, number of active addresses and transaction count, as well as transaction values and fees. 

Let’s take a closer look at how this data grants trading insights.

Blockchain’s architecture plays a significant role in securing a network, and diving into its data proves to be valuable for cryptocurrency fundamental analysis.

Bitcoin is an example of a cryptocurrency that runs on a 

 (PoW) consensus. PoW blockchains require crypto miners to solve computational puzzles that verify each transaction while preventing 

 control of the blockchain. Should there be a 51% attack, the controlling entity (the network attacker) would have the power to alter or halt other transactions that don’t belong to them, or to 

Hash rate is viewed by many crypto investors as an indicator of the health of the cryptocurrency in question. The higher the hash rate, the more miners are incentivized to mine for profits and the greater the security of the network. Calculating a personal hash rate can also help miners determine their own profitability. 

However, when hash rate begins to decline, miners might begin to find a cryptocurrency unprofitable, leading to “miner capitulation,” which often takes place when markets spiral lower, creating pressure for miners to sell off their hardware. Lower hash rates indicate a loss of interest on the part of investors. 

A cryptocurrency’s current price, transaction volume and fees paid are examples of variables that might affect a mining operation's overall expenses. Direct 

, like electricity and computing power, must also be taken into account.

While hash rate is a valid indicator of the health of PoW blockchains, for 

 (PoS) blockchains (such as Ethereum) the amount of crypto staked is the metric to look at.

 for block validations. Hence, a higher number of staked tokens translates to greater blockchain security.

Another approach is to total the number of unique addresses within predefined periods, and then evaluate the results. 

This metric gives investors a good overview as to whether a cryptocurrency is being consistently used.

A network's activity can be measured by its transaction count. Investors may observe how activity changes over time by plotting the number of transactions for predetermined intervals (or by using 

Please note that this metric needs to be used with caution. We cannot rule out that only one party is transferring money between their own wallets to artificially inflate the on-chain activity, as we’re unable to ascertain the identity of certain active addresses.

Transaction value is a metric that tells investors how much value has been transacted over a certain period of time. For example, if there were five Bitcoin transactions of $250 each, all on the same day, the daily transaction value would be $1,250.

A consistently high transaction value indicates that the cryptocurrency is in steady circulation, while comparisons reveal data concerning potential future market movements.

Within a particular vertical, for example 

, we might see transaction value reducing for one cryptocurrency, but increasing for another. This is a sign that the market is shifting its attention elsewhere, and could signal a potential increase in the cryptocurrency’s price given the demand and activity on it.

Fees reflect the demand on a given blockchain, or how many transactions are paying to be added to the blockchain as quickly as possible. Paid fees can be thought of as bids at an auction: users have to compete with each other to have their transactions executed and included on the blockchain. Those who pay higher fees have their transactions confirmed sooner. Hence, higher fees typically indicate a greater demand from users for their transactions to be included on the blockchain.

Ethereum’s gas is an example of fees paid, but every crypto has its own transaction fees. 

Fees can also give an idea of how secure a cryptocurrency network is. PoW blockchains typically provide a block reward to miners, who help process transactions and maintain the security of a chain. These block rewards are usually made up of the transaction fees. With cryptocurrencies that have a decreasing emission schedule, such as Bitcoin, block rewards are reduced periodically, in an event known as 

When block rewards are reduced, it makes sense to increase transaction fees in order to help miners maintain their profitability. Should the rate of increase in transaction fees not catch up with the reduction in rewards, miners may begin to operate at a loss and choose to drop off the network. This could reduce the security of the cryptocurrency network.

Financial metrics of a cryptocurrency gives a good overview of how well the cryptocurrency might be performing as compared to the past, and also gives insights as to its potential future growth.

Market capitalization is the representation of a network’s value. It can be calculated by multiplying the current price by the supply of the cryptocurrency in circulation. However, 

 can offer misleading valuations if you fail to factor in other metrics, such as liquidity. 

In general, market cap can be used to approximate the growth potential of a cryptocurrency. Some investors believe that cryptocurrencies with lower market cap have greater opportunity for growth compared to those with higher market cap, while others deduce that larger market cap translates to a stronger network effect and infrastructure, which will attract the market’s demand.

Even though forgotten currency, lost wallets and irretrievable keys mean that we’ll never really know precisely how many coins of a given crypto are in circulation, market capitalization offers an approximation for a coin’s network value.

Liquidity is a measure of how easy it is to buy and sell a cryptocurrency. If a cryptocurrency can be bought or sold quickly without drastically altering its market value, its liquidity is considered strong. A liquid cryptocurrency has many buyers and sellers’ orders waiting to be filled. This, in turn, narrows the 

, which is a good measure of liquidity. 

With illiquid markets, the problem faced by investors is an inability to sell the cryptocurrency at a “fair” price. This is because there are hardly any buyers willing to make the trade, which will result in two choices for the investors: they can either lower the price at which they’ll sell the cryptocurrency, or wait for its liquidity to increase. However, note that 

 the cryptocurrency might reduce return on investment over the long term if the price doesn’t increase.

Trading volume is a useful indicator of a cryptocurrency’s ability to sustain momentum. It shows how many units of the cryptocurrency have changed hands over a specific period. If an upward trend in value is backed by a high trading volume, it’s likely that the crypto’s price will continue to increase. Conversely, price fluctuations without significant trading volume may just be blips on the radar. 

 of a cryptocurrency refers to the total number of units in active supply that are publicly accessible. Different from the total supply or the maximum potential supply, the circulating supply isn’t static and can change over time, since cryptocurrencies can be 

The emission schedule is something investors can look at in order to make informed decisions. Some cryptocurrencies are deflationary, with supplies that decrease over time. This is attractive to some investors, as they believe that the reduced supply coupled with increased demand from the market will lead to a price increase. 

On the other hand, cryptocurrencies that may be highly inflationary, leading to a high circulating supply, might make investors wary because the excessive supply could lead to a decrease in price.

Project metrics are used to take a qualitative approach to evaluating the performance of a cryptocurrency. They focus on internal and external factors, such as the purpose of the cryptocurrency and how the project operates.

Project websites typically include a list of their team members, whose collective experience can shed light on whether the group possesses the necessary expertise to see the project through to completion. 

Some of the things that investors may seek from a project’s team include the following:

Background checks can be conducted through networking platforms, such as LinkedIn.

Should a team insist on remaining anonymous, investors have to exercise discretion as to whether they’re deemed sufficiently trustworthy. It’s extremely difficult to track an anonymous team in terms of their developments and background.

The white paper is a technical document that outlines the purpose and operation of a project. It’s the most important of the project’s documents, and should ideally contain the following information:

Examine the white paper with a good dose of skepticism, and look out for third-party reviews about the project that can be shared through platforms such as Discord or Twitter.

Identifying a project’s competitors within its vertical is critical to evaluating the project’s potential. A project may initially seem to be appealing, but this might not be the case when its’ compared to projects of competitors who might have a better team, differentiating product features or higher level of community engagement.

Most cryptocurrency projects have a road map for the future, with a timeline for test nets, releases and newly planned features. The road map should offer a clear outline of future developments. Investors can use it to measure the achievement of milestones, and to determine whether the team is performing according to their plans.

 is the economics of token supply and demand, which drive the value and price of a cryptocurrency. The higher the demand relative to supply, the higher the price. By looking at the token distribution, investors may be able to identify any potential risks. For instance, if only a few people own the vast majority of the supply, they could eventually manipulate the market by dumping all their holdings, causing the crypto’s price to crash.

Tokenomics also includes the incentive structure used to motivate behavior on a network. For example, one prominent tokenomic model that’s been gaining attention is the vote escrow model, in which rewards are used to incentivize crypto users who lock up their cryptocurrency for a period of time. This translates to reduced circulating supply, which plays a part in increasing prices.

The vesting period of a cryptocurrency’s supply must be taken into account. A short vesting period for early investors could result in a situation where they dump a large number of tokens onto the market for profit, leading to the cryptocurrency’s price declining over time.

The utility of a token is something that investors should pay attention to. Some projects create tokens which don’t have much utility. In such cases, the market demand for the token will be low, given that it doesn’t serve a practical purpose. Without market demand for the token, its price is less likely to appreciate.

The team’s development activity can shed light as to whether they’re actively working on the project and are hitting their milestones. Check to see how many contributors there are, and how much activity there is on the project's public GitHub, if it has one. A cryptocurrency whose repository hasn't been updated in two years, or one that gives inconsistent updates, may not be as appealing as one whose development has been consistent.

Quantitative analysis is also a great method for analyzing a cryptocurrency. However, it’s not as helpful in determining its risks, or for aspects that aren’t measurable by a number

Other factors that can come into play in terms of fundamental analysis include government policies, social politics and user behavior.

There have been stricter regulations around cryptocurrencies over the past year amid some of the biggest black swan events, such as the 

 (TORN). This has caused the prices of XRP and TORN to vary significantly based on the ongoing regulatory changes.

As the U.S. government has taken a more active role in clamping down on certain cryptocurrency verticals, an investor will have to evaluate whether the cryptocurrency they wish to invest in might be affected by any negative regulations.

The Covid-19 pandemic gave investors a taste of a truly global crisis and its impact on financial markets. As the pandemic unfolded, all assets, including cryptocurrencies, sold off. 

. Investors took a risk-averse attitude and fled from speculative assets.

In response to this crisis, governments around the world passed trillions of dollars in stimulus packages. As central banks flooded the system with 

, investors turned to cryptocurrencies as a store of value and an inflation hedge. 

Investor behavior is one of the most difficult factors to evaluate. However, recent times have seen users investing based on key opinion leaders (KOLs), typically individuals with a large following on social media platforms including Twitter, Instagram and TikTok. 

How to Analyze a Cryptocurrency Using Fundamental Analysis

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