Crypto Due Diligence

Web3 hands you a map and a magnifying glass, and you must learn to use both with calm curiosity and sharp suspicion. Start by finding a project's smart contract address on its official pages or on trusted token listing sites, and copy it carefully so you do not chase a copycat. Paste that address into a blockchain explorer built for the chain the token lives on, and inspect basic metrics like total holders, transfer history and liquidity pools to see if the token is moving organically. Look for the contract source code and a verified build, because readable code lets independent researchers spot dangerous functions such as unlimited minting or hidden owner privileges. Check token distribution and recent large transfers to spot concentration of funds that could enable a rug pull, and look for vesting schedules or timelocked allocations that show whether insiders are locked in. Watch the approval and allowance history to see if users were tricked into giving broad token permissions, because approvals are a common exploit vector. Use on-chain event logs to trace token launches and liquidity additions, and compare timestamps to account activity to spot coordinated wash trading. Parallel to on-chain checks, enter the project’s community channels and observe tone and responsiveness, because a responsive team that answers concrete technical questions is a better signal than empty hype. Read community history to find repeated complaints or repeated silent responses, and treat overly aggressive buying prompts as a red flag. Open the white paper and look for a clear use case, an honest technical explanation and a concrete roadmap with deliverables and timelines that can be verified later. Verify claimed team credentials by checking independent developer repositories and public contributions, and treat anonymous teams with extra caution unless the economics and code are ironclad. Seek independent audits and independent analyses that reference specific code lines, because high-level claims mean little without technical backing. Cross-check information across explorers, community channels and project documents to avoid relying on one narrative. Use public blockchain transparency to your advantage and prefer projects whose progress can be measured on-chain. Remember that Web3 rewards scrutiny, and that asking simple technical questions and demanding evidence is not paranoia but basic civic duty in a landscape where greed often poses as innovation.