Effectively Evaluating Cryptocurrencies – Austin Akers

Effectively Evaluating Cryptocurrencies presented by Austin Akers at Bit Block Boom.

Blog post by Cousin Edgar Stumblefield.

Outline

I am not a certified Financial Adviser

This is only for educational purposes

More about the Speaker

Sr. UI Engineer at All-State
Founder of Cryptoplex Management
Co-Organizer of free CodeCamp Dallas Chapter

How many of you have been hit with an ISO scam, or just dealt with something that did not go as you had hoped?

How many of you actually do research?

What are your resources?
How often do you keep up to date with your holdings / market?
What are your methods of approaching your evaluation?

Three Approaches

1- The Software Developer Approach
Baseline of excellence – look at the accolades the person has gotten (ex: someone could have 15 years experience, but have done the EXACT SAME THING for 15 years)
Technical – how well do they know the tech behind the project
Social – too many “mad scientists” in the room can be harmful

Github Activity

Last commit
Frequency
Substance (ex: updating documentation, or changing the spelling of the word is not much of a contribution)

Ex: A person talks about Fastcoin, which clears the blockchain in 12 seconds ; on social media, the person has lots of posts, but last Github comment was in 2014.

Technical Goal Achievable / Logical

Consult a developer
Have them evaluate the milestones and codebase

2- The Business Approach

Do research
Look into every team member
Social Media – LinkedIN ; Facebook ; Instagram ; Twitter ; Forums ; Myspace
Evaluate their content

Evaluate the Whitepaper – What do I look for?

Is it clear and are there misspellings?
Team
New Market vs Current Market Analysis (Cross-competitor analysis)
Vision – what are you looking to achieve?
Scope – is your vision remotely possible?
Tokenomics

3 – The Financial Approach

Token Distribution
Evaluating Market Cap, Volume

Token Distribution

Look at Total / Circulating Supply
Check top wallets holding it
Ethplorer.io
Etherscan.io

Market Cap, Volume, Circulating Supply, Price, and Current Exchanges

There is a relationship between market cap , volume , price , circulating supply

Evaluating Exchanges

Insured?
Length of Operation
Reputation in the Market
Geographic location
Liquidity
Safeguards?
Reliability

I go through a lot of forums and blog posts to check on the reputation of the exchanges ; Ex: Mt. Gox ; Had 3 breeches ; After 3 breeches I would not have my money in there ;

Some countries have loopholes on how they can get to your money. Be aware of this

Some exchanges have a high amount of people ;

If your exchange is down 5 hours out of every month, then that is time you are not making money ; you have to take this kind of thing into account ;

Market Manipulation

Pump and Dump
Spoofing (ex: have someone set a ridiculously high order that is never meant to be met)
Price Suppression
Market making – random spike in volume to show there is interest in that crypto ; not necessarily bad, but you will want to be aware of this
Wash Trading

Q: What are the top 3 exchanges you like to use?
A: Coinbase ; my most trusted ; I also have Bittrex ; and Ford Delta

Q: Besides Bitcoin, what is another project you would look at?
A: I tend to stay agnostic when it comes to Bitcoin, but I read code a whole lot; over Bitcoin, only Sego(via) would I say is the most promising; their transactions per second, theoretically, about 1 million per second; I already pulled their SDK and have been looking at it and their Ruby backend ;

Q: What do you think about Populus?
A: Ah, the one that is looking to do invoice disruption?; Let's say I have a business, and I get an order for 50,000 T-shirts; I go to the bank, and get a loan; there would be a ridiculous amount of interest; you fulfill the order, and then pay the bank back; What Populous allows is the the same thing, but decentralizes this kind of loan; Populous utilizes all the same algorithms that the other banks would use, but can still fulfill the invoice; the investor gets to set the interest rate.

Austin Akers is currently a Sr. UI Engineer at Allstate. He currently does Full-Stack and Solidity Development. Austin is heavily involved with developing junior developers, and encouraging community building in the DFW Startup Community. He is a co-organizer of the free CodeCamp Dallas Chapter, on the Board of Advisers for NoD Co-Working, an active member of the DFW Startup Community, Volunteer for Homeless Nexus and the Prison Entrepreneurship Program and a huge advocate for the utilization of blockchain technology for web applications.

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