(NEW YORK)–The recent correction in cryptocurrency markets should force issuers to be proactive in disclosing their token business models as investor become more selective on where to deploy their capital.
The recent decline in cryptocurrency markets sends a message to issuers to begin separating themselves from speculative MEME type projects and make clear the use case of their tokens as investors become more selective post-correction.
Reduction is Speculation Excess
Just like with stocks, market corrections have the ability to flush out excess speculations in both markets and issuer tokens and refocus investor capital towards projects with true technology and valuation potential.
What investor should consider post-correction:
1) Market Capitalization of Project: Is the project now offering a more reasonable valuation or is it still somewhat overpriced for their specific phase of development.
2) Demand Model and Use Case: Does the project have a solid demand model in place that would justify a bullish supply side inventory for their tokens in near future. Much of this can revolved around is their technology uniquness, and is this something consumers and/or their community may implement in mass.
3) Token Circulating to Total Supply (Diltution): What is the structure of the project token from current amount circulating, to remaining amount left in Total Supply that could come to market. Does project have a deflationary model or burn policy? When does the team wallet begin to vest into market?
4) Project Team: Finally, who are the team members behind the project. This is usually one of the top details many VC firms look at when evaluating a project. Do they have the expertise, and can they execute on the business plan?
Market corrections usually cleanse out excess speculation and refocusing investment capital around a narrower supply of projects who deserve them. CryptoFilings offers a platform and suite of services to assist projects in gaining better exposure with more select investor communities.
Post-correction, current issuers should be more proactive in showcasing and promoting not only their technology, but material events within the project to better help investors make a more informed investment decision.
For more information on CryptoFilings services please visit https://cryptofilings.io/issuers/
CryptoFilings is a central hub for crypto projects to upload information on their project to increase regulatory transparency through financial statements, or public disclosure of material events. CryptoFilings also offers a wide range of other services such as legal, smart contract auditing, and corporate advisory services to assist projects in adhering to future compliance and regulatory requirements. https://cryptofilings.io