Navigating the Web3 Hype & Choosing the Right Project

I’m sure I’m not the only one who’s noticed the recent shift in the international market, with more people moving from Web2 to Web3 space. And it totally makes sense - there are so many innovations offered in Web3 that aren’t available in Web2, that it makes sense users would be drawn to them. However, that doesn’t mean that all Web3 investments are worth looking into - which is why I’ve put together a few suggestions on what to look for before making a decision. 

For more of these sorts of tips, don’t forget to follow Giorgi Shonia’s blog where he talks all things crypto.

There have been many instances in recent years when a project was artificially hyped up - I’m sure everyone remembers the crazy NFT boom when even those who were outsiders to crypto began aggressively buying them because it was trending and they didn’t want to miss out. But what a lot of these impulsive buyers lack is the vision of the long-term strategy - during this boom, some NFTs were valued and bought for a million dollars - now, most of those would hardly sell for $20K. That’s why before getting involved in any project, no matter how promising at first sight, you need to ask yourself the following questions: 

1. What is the foundation of this project?

2. What is its purpose?

3. What issues does it aim to resolve?

4. What sort of a team and what premise does it have behind it?

5. Does it give you access to anything?

If you cannot find information on all of these, as would have been the case with NFTs, it is highly likely to be a project that is fated for short-term hype at best, meaning you as an investor the one who ends up losing.

Of course, each investor must weigh risks on an individual basis to understand what’s at stake and whether the risks are worth it. For me personally, the greatest green flag of any project is innovative solutions, e.g. layer 2 blockchains, which have significantly improved my experience as a user, making it faster, cheaper, and smoother.