5 Keys to Choosing the Right Crypto and DeFi project

The Crypto and DeFi world has been serving spectacular opportunities for many years now, but we cannot also deny that there are these so-called fraudsters in this space.

You can avoid it by identifying a good project and staying away from scams for good.

Here’s the list of how to quickly spot a Crypto and DeFi project's green flags.

1. Give the whole project a quick scan

Good Web3 teams always have something to contribute to the space. See what technologies are behind their product. This can be easily seen with a tool like builtwith.com, good signs are modern JavaScript frameworks like React, Vue, or Angular, use of IPFS, GraphQL…

Red Flag, well, WordPress, anyone saying they're doing Web3 under WordPress is at least a bad team. WordPress means that the development team is amateur or there is simply no team. Making a Web3 application on WordPress is an error where I don’t think any tech peeps would fall.

Legitimate crypto projects ALWAYS deliver working products with a strong foundation. Folks that are only after your dime are not interested in that.

ℹ️ Not all Web3 projects are open source, but at least their Smart Contracts are usually on GitHub, if there are no traces of work on GitHub you better ask why.

Disclaimer: Tortle is not 100% Open Source, but our contracts are public on GitHub.

2. Study the project’s website from whitepaper to roadmap

The whitepaper and roadmap are fundamental in a project to know what are the objectives of the company in the medium-long term and how they want to be developed.

The whitepaper marks the basis of a project, and we all know that having a
a good basis is essential.

A whitepaper on PDF is not a red flag itself, but there are solutions such as GitBook or GitHub that allow you to better store, increase, and correct information. If there is ONLY a whitepaper, and it is NOT an exclusively scientific paper published in Arvix or similar, it’s not a good sign. Normally, good Web3 projects have something more to show.

Tortle Ninja Roadmap

3. Team Transparency

In Web3, some teams remain anonymous and some are not.

Most good projects have teams that are transparent with their social networks like LinkedIn. Where you can check their previous professional experiences, technical profiles, engineers, developers, designers, and cross-reference this information with what they are doing within the project.

Tortle Ninja Linkedin

4. Look for security audits

Security audits will help protect critical data, identify security loopholes,
create new security policies and track the effectiveness of security
strategies. Regular audits can help ensure employees stick to security
practices and can catch new vulnerabilities.

An unaudited token or application is a potential scam. If a team has some funds, they usually publish and audit their smart contracts. This appears on their website. Audits are expensive, some projects in their early stages do not have them, but if the product has users, there should be one behind it.

Tortle Ninja Smart Contract Audit

5. Know whose the Partners and Investors

There are good bootstrapped projects but typically, if a project is huge enough it probably needs investors. Watch the VCs if they are public, it is vital to know who they are and what other projects they support.

This is critical when choosing a project. Seeing who has
financed and who the partners will always help us when selecting
one project or another.

Good VCs = Good project track record

Also, remember to always check on both partners’ websites if their relationship exists. Anyone can become a partner, especially if the website is suspicious.

Tortle Ninja Partners and Investors

About Tortle Ninja

Tortle Ninja is a no-code decentralized financial tool built to enable retail investors, fintech, and crypto enthusiasts to create combined DeFi strategies.

Tortle users can create combinations of DeFi operations by linking the nodes and defining a strategy. You can split, create a limit, stop-loss orders, and even more complex strategies.

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Tortle Ninja

Tortle Ninja

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A NoCode DeFi framework built on Fantom. Create combined strategies & operate like a pro. https://tortle.ninja