How to Check a Crypto Project: 9 Checks Before Buying

An unknown token can be put through its paces in about half an hour, and doing so requires neither programming skills nor a subscription. The core of the exercise comes down to three questions: who stands behind the project, who owns the tokens, and how much of that can be looked up independently?

This guide works through nine checkpoints in order, from the European register to how holdings are spread across a handful of addresses. What it produces at the end is not a verdict on individual projects but a procedure you can apply again to every token that follows.

Why Due Diligence on Crypto Assets Works Differently Than on Equities

With a share, the capital market supplies the homework: audited annual accounts, notification thresholds, ad hoc disclosure duties, plus a supervised trading venue. With a freely traded token, that substructure is largely absent. The figures usually come from the project itself, and the cross-check is yours to organise.

That does not mean there is nothing to check. On the contrary: a public blockchain exposes things that would never be visible at a company. How many tokens exist, where they sit and when they last moved can be looked up by anyone. The skill lies in looking in the right places.