Filter Your Native Token List by Fundamental Analysis Part 1

Hey there,

I hope crypto is being good to you and your portfolio because i we are going to filter our list down through fundamental analysis.

Remember that list we talked about building last post of some of the interesting tokens in your sector..? We are going to need that in order to find the hidden gems in that list worth our investment time.

Fundamental analysis is more than just a buzz word for crypto YouTubers to yell into your face though. My personal interpretation of fundamental analysis is to simply understand what is going on under the hood of a project and verify that there is good reason for us to look deeper into the project for potential investment.

Why would I want to waste my time checking out charts and tokenomics of an investment if the project has no use case, hasn’t delivered a product, and has no market dominance. This seems like a recipe for disaster.

Instead of wasting precious time, fundamental analysis can help to simply determine if a project is even worth our time at this moment for future investment decisions.

I think you’re putting yourself at a serious disadvantage if you aren’t adequately analyzing the projects you’re invested in (sort of like investing with a blindfold on).

So fundamental analysis is important for the 100x, but how do we do it?

It’s really quite simple in practice, but will take effort to become accustomed to.

First, I want to grab my list of tokens that I made last week. Here’s an example of a potential list of tokens to analyze (it’s okay if yours looks different):

Now that I have my list, I want to go through each one of these tokens and ask the following questions:

1. What problem does this project solve and do they have any competition in the sector? 

2. Is the project live and do people use it, or is it in its “building” phase? 

3. Does the current market cap and project size meet your end goal requirements? 

Why are these questions specifically important?

They help us to identify whether this project has the potential to attract more investors, build revenue, and continue to dominate their market expanding the potential of growth and investor satisfaction.

To help answer these questions, you can look at important data, such as:

1. Project use case and unique deliverables compared to the market

2. Deliverables on the roadmap and whether they are completed to a high level

3. Market dominance and if the ecosystem finds the project valuable

4. Team members and their reliability

5. Community on Twitter (X)/Discord and if investors are engaged

6. Gut feeling - how do you feel about the project

7. Competitor analysis and if the competition is delivering better results

8. Future deliverables and opportunity as an investor

These are just a few of the immediate things I would want to know before building a sizable investment into a crypto project. These questions help build confidence and understanding of the pros and cons of any investment (because every investment can have pros and cons).

Your goal as an investor is to identify which of these fundamental aspects are the most important to your portfolio, and which ones can you live without.

For example, I think a delivered product is important before I invest into a token. Much more important than a perfect product.

But why do I think this?

Because I used to invest in tokens before they built their product, and I got burned. I simply lost money and the project never delivered the product. I am not in the business of funding ideas. I am in the business of investing into a project that has delivered a good business and can show opportunity.

Other people will take investment risk on projects without a deliverable yet. Everyone has to build their own version of the “best” fundamental analysis data points.

Furthermore, I think that projects who have better brand power and lasting power (meaning they have been around for years instead of months and are still thriving) are better investments for me. I would rather bet on the project that came out in the bear market and is thriving than the hot new bull market play.

Fundamental analysis is more than just a crazy cool buzz word that influencers say for attention and to validate investments. I think of fundamental analysis in the context of Warren Buffett. Buffett and Munger did extensive research on companies they wanted to invest in. This was their edge. I definitely don’t think you should obsess over research, but learning more than other people (or at least more than the average crypto investor) can only be a net positive.

Lastly, with fundamental analysis, you want to build your criteria based on your goals. If you want to gain 100x and your niche sector in crypto is memecoins, you should tailor your fundamental analysis requirements to that specific niche.

If your sector is Solana defi or Cardano defi, maybe your requirements for fundamental analysis are different. The big thing we should ask ourselves is “why do I think this is a good investment and what fundamentals can help me to show that?”.

When I am picking out native tokens on Cardano to invest in, I look for:

1. Market dominance or leading brand power - if I am looking for a lending protocol to invest in, I analyze all of the lending protocols and find the one or two with the most moat of brand power

2. Deliverables and community sentiment - has the project delivered on their goal, have they been around for a long time, are they respected in the community for the problem they solve

3. Roadmap and potential - do I think the project can reasonably continue to develop and adapt to the ever changing market needs

If I were investing into memecoins on Cardano only, maybe I look for:

1. Market dominance and leading brand power

2. Mega strong resilient community

3. Good memes, vibes, and social media presence

4. Developments of their project outside of just meme coin tokens - do they have products, help others in the ecosystem, have a niche edge or utility that is beneficial

5. Lasting power - has the project dumped, or has it dumped and revived and held on above the lows

Fundamental analysis is just one of the 3 major aspects we are going to look at in our Crypto 100x Blueprint Checklist email series. I never make an investment decision purely off of fundamentals alone.

By now, we can take the list from last post and begin to walk through the fundamentals of every project on the list. We can also compare fundamentals to other projects on the list to find the true, best fundamentals.

This is step one. Next post we are going to look at tokenomics so then we can filter our new list by the project tokenomics in part 2 of fundamental analysis. Fundamentals are one piece; tokenomics and chart are the other.

Here is post number 4 part 2 covering tokenomics analysis:

Thanks,

Dawson