Are you tired of seeing Web3.0 Projects saying that they’d be the next big thing in the cryptocurrency space and beyond, only to find out that the only thing bigger than their claims is the lies they spout amongst their trusting users? Perhaps you’re a beginner in the industry looking to find ways to discern which projects out there toting the name Web3.0 willy-nilly is the best one, Or maybe you just needed some form of guideline that would help you find success in the industry as a potential Web3.0 Project Creator.
Worry not. As there are millions of you out there scratching their heads in confusion while every project out there in the cryptocurrency space is using the term “Web3.0”, I’d walk you through all the surefire signs that a Web3.0 Project is going to succeed in this relentless industries that eat weak projects for breakfast!
Before we dive into the thick of it though, let’s talk about what it really means to be a “Web3.0 Project”
What’s a Web3.0 Project?
Cut and dry Web3.0 Projects are concepts, ideas, and grown enterprises that situate themselves in the booming world of Web3.0. Web3.0 itself is a topic for another discussion but it basically delves into the phase of the internet that is built around the notion that every user will be given absolute power over everything they own on the internet. Their data, their purchases, history, you name it.
So when somebody says they’re a Web3.0 Project or a Web3.0 Developer, this is what they mostly work for. A phase of the Internet that’s centered around democratizing its usage.
Now that that’s out of the window, let’s explore what signs you should look out for if you want to invest in a succeeding, or outright successful Web3.0 Project.
Surefire Signs a Web3.0 Project’s Going to Succeed!
Here are indicators that would help you decide if that Web3.0 Project you’ve been circling around for weeks is successful or not, so you can finally take the plunge or jump off to a better project moving forward.
Note that while these are great indicators that a project is successful, this was made with the current Web3.0 landscape in mind, so for future readers out there in 2045 or so, take this with a grain of salt!
1. User Adoption and On-Chain Activity
User adoption is a good indicator of how a project is faring. It tells you many users there are, how frequently they use the features and benefits that a project provides, for certain projects it also gives you data for how much active wallets and transaction volume is operating at any given time too. Rule of thumb is that the better a project, the higher their User Adoption and On-Chain Activity will be. This is especially true for Web3.0 Projects who oftentimes inaugurate their very own networks, carefully gauge how much monthly users they have on average, and decide from there whether they are a good fit for you, or not!
2. Network Participation and Decentralization
Web3.0 has “decentralization” etched all over its walls and halls. So it’s only fair that Web3.0 Projects champion this concept right?
Well some “Web3.0 Projects” may say they are decentralized but on the fundamental level of their network, you’d find that it’s all smoke and mirrors, it’s a little technical but it pays to study how that project you wanted to invest in works behind the scenes, to ensure that they are indeed decentralized through and through.
Look for the number of nodes, validators, distribution of token ownership metrics, as well as the number of people that are actively contributing to the success of the project to decide whether it’s going to be successful or not. Most often Web3.0 Projects launch themselves ready-made anyway, so it’s going to be easy looking for these metrics.
3. Token Economics, Market Performance
As with regular Web2.0 Cryptocurrency projects, having a healthy market performance is a good indicator of a project’s success. The more people talking about the project and interacting with it, the better.
However, sustainability is also paramount to success. And a project’s tokenomics will be the decider of that. Check the project’s economy, how their tokens are distributed, how they make money off of every interaction, and any deflationary features that are in place should inflation come around.
A project that’s bound to be successful has these all, if not more. Sustainability, contingency plans for when their tokens tank in value due to market conditions, reparations and recompense for users should unfortunate things happen to their cryptocurrencies, these are just some of the things you should look out for in the Tokenomics category.
4. Developer Engagement and Initiative
Arguably one of the most important things that every Web3.0 Project should have is an interactive and proactive developer/team. Commitments in code, active creations, interactions with the community that they are building, plus an active Customer Support channel is a must for every successful Web3.0 Project to thrive and succeed.
Gone are the days when investors had to wait for days to get their issues or requests fulfilled. In the world of Web3.0, everything is fast, so it only makes sense for Developers of a project you want to invest in to be proactive and urgent in providing the best form of service they could!
5. Governance and Community Involvement
Since the whole Web3.0 paradigm is built under the premise of user-centric models and governance, it’s only fair that the Web3.0 Project you would invest in is something that provides you with the power and tools to exercise it! Governance models, Active community involvement in the creation and development of features and utilities as well as the future of the project is imperative nowadays. So look for projects that offer these voting mechanisms and avenues for your voices to be heard!
One of the most important things that a Web3.0 Project should possess is future-proofing. The whole industry is dynamic and stagnant projects, no matter how profitable they may be, will be left in the dust eventually.
So invest only in projects with scalability features that allow them to stay on top of the market no matter what happens. DAOs, Voting mechanisms like the ones offered on governance models, an active and dynamic developer-base that continues to improve upon their craft, are just some of the things that you should look out for when you’re investing in a Web3.0 Project!
The whole Web3.0 landscape is still uncharted for the most part, but projects here and there are vying for a place in its lands and sometimes, it gets confusing when you choose which ones to invest on and put your trust in.
However, with these metrics/indicators around to guide you on making that first step forward, you should be good to go! So go out there and discover the lands of Web3.0 for yourself, and bring back success stories too if you will!