Utility and Real-World Use Cases
Let’s face it, the majority of projects launched in the last bullrun were built on hype alone. There was no real-world connection to any of them. Many in Web3 believe that they need to address issues in Web3, or that interacting with the Web2 world is unworthy of their attention. These are misguided notions. All technology exists to make the world a better place, whether that is through utility or pure comfort and entertainment. The blockchain is a tool that we will all be using one day to augment the technologies and services that we’re already using.
When looking for a new project to invest in, it is crucial that the project addresses actual market needs or introduces innovative solutions. This could be streamlining processes in finance, improving data security in healthcare, addressing supply chain pain points, or even something as simple as a game, the project should deliver a product, not an idea or a community.
Public and Experienced Team
“Doxxing” is a strange term to use in a business setting, considering the fact that all CEOs and founders have been doxxed since the beginning of time. Doxxing is the act of identifying oneself to the public, whether it is intentional or against your will. Because anonymity, beyond the obscurity of corporate hierarchies, has never been an option for any legitimate business owner before now. So for a team to boast about being doxxed isn’t any kind of remarkable accomplishment, and it doesn’t protect their project from failure.
However, moving into 2024, there is no good reason to take a project seriously with a mysterious team hidden behind pictures of cartoon monkeys. Doxxing is the bare minimum. Not only that, but a project is only as strong as the team behind it. A knowledgeable and experienced team with a track record in blockchain, related fintech, or their chosen industry, is a good indication of future success. Many young entrepreneurs enjoyed huge success, but many more demonstrated their lack of experience through poor decision making skills and an inability to follow through. That isn’t to say that a green team can never succeed. If they already have a working product, then the investment may be well worth the risk. Just don’t buy into a dream.
Robust Tokenomics
Tokenomic structures have been completely out of hand for a long time, and there is a good reason for it: investors and the community at large had no idea what they were looking at. Founders were getting away with the least sustainable token economies of all time, but because no one had the knowledge to correct them, the fancy numbers were enough to fool everyone involved. Even the founders themselves were often taken in by tech and marketing teams who were able to convince them that they knew what they were doing.
But it’s not entirely anyone’s fault. This is a new industry and it is difficult to anticipate trends years into the future with shifting markets and rapidly changing technologies. For most projects, simple is best. The token should have a defined role within the project’s ecosystem, offering clear utility and incentives for users. The economic structure should support value retention and prevent excessive inflation. For example, endless staking rewards without any burn mechanism or buy pressure inevitably killed many tokens.
Scalability and Security
Scalability and security are critical components for any Web3 project. A scalable blockchain can manage a growing number of transactions without succumbing to congestion or high fees, ensuring the platform remains accessible even as it grows. Security, on the other hand, is non-negotiable. Projects must demonstrate a commitment to protecting user data and assets, typically evidenced through regular security audits and adherence to best practices in blockchain development. Without these, even the most promising projects can quickly become untenable or targets for malicious attacks.
Regulatory Compliance
With Gary Gensler constantly making waves and countries all over the world taking notice and cracking down on fraud, regulatory compliance is becoming more important than ever. The shifting regulatory landscape is a sign that the crypto space is maturing, and projects that anticipate and adapt to these changes are setting themselves up for long-term success. Being proactive about compliance isn’t just about playing it safe; it’s about demonstrating a commitment to transparency and user protection.
There’s more to it than ethics. Any new business owner will also be unaware of the mountain of paperwork and red tape required to go through when starting a business. If they get started in Web3 where the rules are fuzzy, they may unintentionally ignore possible regulatory issues their project could face if met with scrutiny. Going through those motions and becoming as compliant as possible shows that the founders understand what it takes to get a business up and running and feel the need to do the prerequisite work that they remember was important before.
Let’s take a look at 5 exciting upcoming ICOs that are checking many of these boxes.
EstateX is set to revolutionize the landscape of investing, lending, and ownership, democratizing access to the global $300 trillion real estate market. With Larry Fink, BlackRock’s CEO, claiming tokenization as the market’s next evolution, EstateX empowers everyday individuals to become global property owners with as little as $100. The intuitive interface facilitates a swift sign-up and property investment within minutes, with the first dividends paid within 24 hours, repeating daily. Honored as the Best RWA Project of 2023 and featured in USA Today and Forbes, EstateX has raised $3 million in presale, with each round selling out in minutes. Investors benefit from exclusive real estate opportunities, hassle-free management, and instant loan options. The EstateX Pay card provides high liquidity, allowing real estate to be used for everyday purchases. For property owners, the platform enables easy tokenization, releasing liquidity on the part of an asset, community funding, and fractional rental disbursements. EstateX is shaping up to be a new inroad to generational wealth building.
A quintessentially “Web3” project but, despite its name, AI Meme is not a meme coin. It is an AI-driven project using memes for interaction and engagement. Put simply, the $AIM coin will be used to purchase NFTs from the AI Meme NFT Marketplace. The primary NFT you can buy is the AI Meme companion. It is an AI-powered, voice-enabled chatbot with facial expressions that takes on the likeness and assumed personality of popular modern memes. Each companion can be personalized with other NFTs purchased with $AIM from the marketplace. Spending the token in the marketplace burns it, driving the scarcity up with each use. Like any other AI, these funny friends can learn and adapt to the user. Backed by Jogo Media LTD’s proven track record, the experienced team is providing a new way for the general public to interact with AI. Lastly, the team and the smart contracts have both been KYC’d and audited by SolidProof and Cyberscope.
RoseonX is redefining DeFi trading with an interesting approach that, surprisingly, is fairly new. The platform was launched in January 2023 on the BNB Chain, but the IDO is coming soon. It offers a gamified perpetual DEX experience, setting it apart from other competitors in the market. The platform has low fees and high-speed transactions. It also has high-leverage trading options. The unique gamification elements include badges and leaderboards, making trading more fun and engaging, especially for new users. RoseonX is gaining traction in the perpetuals market with over $10M in TVL and its daily trading volume is over $1M. The platform is of course backed by Roseon, a project well known for bridging the gap between CeFi and DeFi.
Haven’s Compass, developed by Ghost Ivy Development Studio, brings intense FPS gameplay to Web3. The Open Alpha phase in August 2023 saw over 25,000 downloads, over 50,000 hours played, and thousands of matches. This was hosted on the Epic Games Store, which will also act as the primary publisher and launcher. Set in a dystopian, post-apocalyptic world and created with Unreal Engine 5, players can choose from different characters with unique stories and skills. Gasless transactions and deep community engagement and feedback set up the project for long-term success. Set to launch in 2024, notable partners include SKALE Network, Seedify, Merit Circle, Myria Network, and Immutable zkEVM powered by Polygon.
Portal’s main goal is simple: allow players to play any game on any chain with one coin. This approach tackles the problem of a fragmented ecosystem, making it easier for gamers to jump from game to game without any friction. The platform connects players to a vast library of over 100 games, including big titles like Star Atlas and Oxya Origins. These games combined have raised over $120 million, and there are over 2 million players in the ecosystem. Behind Portal is a team of experts with a history of working with major players like Xbox, EA, Rockstar, Riot Games, and Ubisoft. This experience is paired with strong partnerships, including Layer Zero, Magic Eden, and SKALE Network, illustrating a firm foundation for growth and innovation.
Disclaimer:
As usual, you should always do your own research (DYOR) on any project before getting involved. This is not only a way to avoid fraud, but to keep up to date with the project and ensure that you can time the market properly. It is easy to miss launch dates, big announcements, and other important events when not properly invested in a project’s development.
