📎Sourcing profitable projects
The blockchain's unique advantages
Blockchains are unique platforms for many reasons.
For our purposes, the unique characteristics of blockchains, as a place to launch new ventures, is one reason they have attracted massive growth.
The first unique advantage is its low launch cost and global scale. A legitimate project can create a new business idea or project, launch it on the blockchain very inexpensively, and attract financial interest and backing from a global small-investor audience. If beneficial for the Project roadmap, the project can choose a pathway to higher visibility, through CEX listings and other methods to scale and build momentum and project growth, when it knows its project has market and user traction.
TUF is an example: TUF launched its TUF Token in November 2022, to support the ongoing software development of its TUFEXT site and project, support its marketing activity and growth and provide new resources to build its communities.
The downside of low expense to launch and a large active user base, is that these market features also attract scammers, honeypotters, ruggers and other bad actors.
The purpose of TUF DeFi solutions is to provide information to assist investors with the tools to assist in avoiding bad projects and highlighting projects with high potential, and software solutions to access and execute blockchain transactions to improve user profitability.
The second unique advantage of the blockchain - all transaction data is public and accessible. TUF can query historical data, analyze code bases of smart contracts, and on-chain evidence to identify potential bad actors before they launch new bad projects (bad actors often repeat their scams again and again), as well as good actors who have had successful previous projects.
All transaction data is freely available and by querying the blockchain, the code that the developers used to create their smart contracts as well as analyzing comparative data TUF is able to build an enviable set of tools to uncover likely scam projects, as well as hidden gems.
TUF users are often looking at the new launch market - it is a risky market, as you have a high % of churn - from scammers, rugs as well as projects that simply fail.
What attracts users to this market is the possibility of very high returns, in a very quick time, for those projects that do well, with the potential for extraordinary returns by early entry on rare project unicorns, like SHIB or DOGE.
Why track project on-chain activity?
As all on-chain transaction data is public and accessible, what is also discoverable are the smart contracts that underlie the project, which describe the functions it allows and potentially, malicious settings.
What is also discoverable are the breadcrumbs left behind by previous on-chain activity which can provide market participants insight into the possible intentions of new project owners. TUF has developed a set of tools, in the Live Simulator inside the SniperBot as well as accessible on the TUFEXT website, to provide these tools to users.
Project Filtering by blockchain and smart contract code
Contracts are often forks (or copies) of a previous contract. Forking itself is not bad, many useful and successful projects have been created from an initial fork, for instance, DEXes forked from the Uniswap Dex Router contract. But scammers often scam repeatedly, often on the same day. For fast scam creation, they reuse the same contract again and again. TUF can identify unique signatures of contracts, and by comparing them to current listings, infer likely similar outcomes.
TUF can also ID-match contracts to other similar contracts - close matching is another way to infer they were generated by the same developer - and we can look at the historical activity of those related projects, highlighting previous scam activities, as well as previous project successes.
TUF can review the contract wallet owner's previous activity and involvement in other projects and the on-chain histories of those projects.
TUF can source data on the source of on-chain or off-chain funds of similar contracts - all methods to paint a picture of the future intent.
Looking for those projects associated with a history of other successful projects will inform a user's decision-making. TUF tools allow users to make better decisions about what has a higher probability of success, from those that do not, from those that are more likely scam projects.
The Basics
Ethereum blockchain data is available on Etherscan.
Binance Smart Chain blockchain data is available on BSCScan.
Tenderly also offers a helpful platform with clearer data to investigate transactions on ETH and BSC blockchains.
There are a number of tools available to investigate and analyze wallets on the blockchains, from free solutions like DeBank, Zapper and Zerion to high-end paid solutions like Nansen.
The TUFEXT project and wallet analysis tools make for quick and effective analysis, allowing you to view buyer histories of projects, associated projects, and smart contract forks, as well as wallet histories, Historical returns don't guarantee future results, but they can give you a picture of the project owners from their actions and activity.
To get access to TUF wallet analysis tools invest in the TUF Token.
Holding 600,000 TUF tokens gives you access to Contract Analysis, available in TUFEXT Tier 1. Holding 1,500.000 TUF Tokens gives you access to Wallet Analysis, available in TUFEXT Tier 2.
Holding 5,000.000 TUF Tokens gives you access to Wallet Analysis, available in TUFEXT Tier 3.
Is sniper trading bad?
Sniping projects has a bad reputation and has the taint of unfair market advantage and may seem mercenary, but sniping is a net positive to the project as well.
The sniper market participant is often an informed buyer, obtained through hours of ongoing market research through deep market knowledge of new listings, past, current, and future trends, insight into how the markets may value a project's utility, and an understanding of the tokenomics.
This knowledge is earned at a cost of time, attention, tools, skill development, and trading costs, a sunk-cost investment risk, that the sniper aims to be rewarded for with profitable trades.
Snipers often buy and sell quickly, aiming for quick profits and projects often look to stop this activity - which is short-sighted. Snipers are buyers.
More buyer transactions: Higher levels of price action from more buyers and sellers will attract attention from traders on the sidelines and encourage them to enter, bringing new momentum.
Not all snipers are sellers. A good proportion of sniping buyers want to buy early and hold over time for larger and larger profits. As some of the first project owners, they are incentivized to participate in marketing the project and informing other buyers about the project's value, generating grassroots appeal and hype.
Snipers can be viewed as your high risk-taking 'first followers', which encourages the next, more important group of 'second followers', still early, still with extreme alpha potential, but from which, a project gains traction, and gets wider visibility and support.
Sell transactions are also good price action activity for traders on the sideline, as sells will push short-term prices lower - to price levels where fresh buyers can enter on a pullback, regaining momentum and pushing prices to new higher highs.
Snipers can change their mindset on their sell activity at any time, manually selling, selling at a pre-configured profit or stop loss settings, or turning off sells and maintaining ownership over longer periods.
Sniping software is a feature of the market for both DEX and CEX trading, is part of the market landscape, and is a net positive for the market and the project owner.
TUF provides a leading market solution for sniping fast execution of on-chain transactions with its TUF SniperBot, available on the ETH and BSC Blockchains and now Readyswap, a web-based fast private node swap service, via a pay-as-you-use model.
Getting started sourcing projects
Begin your research by subscribing to channels on CryptoTwitter, Youtube and Telegram. Over time, filter out the poor-performing channels that may just be trying to use you as exit liquidity, from those that are genuine in their project assessments. Your market research will open up your information base into new launch projects, and you can start building your market knowledge and refine your process of evaluating on your own, calibrated to your own investment criteria.
It is also useful to learn the basics of smart contract code, and develop a knowledge base in this area. Youtube again, is a very good learning resource.
Find successful projects by looking at Dexscreener, Dextools or sites like DeFiLlama, to build a knowledge base of trends, new project price action, the prevalence of scams and rugs, to build up your 'marketplace radar', and knowledge on how to avoid them (for the most part).
If you decide you're ready for more advanced analysis, watch video tutorials of TUFEXT web application and join the TUF Token Telegram channel to talk to the TUF developer and TUF user and attend live TUFEXT product demonstrations.
Our Recommendation: Don't rush in. Take your time.
If you're new to DeFi, there is a lot to learn, and a lot of resources available to do so. It takes a while to digest, and some trial and yes, occasional error.
Moving into Crypto, setting up and funding a Centralized Exchange (CEX) account is a step.
Moving funds from CEX to on-chain and DeFi is a step. Sending funds on-chain is scary the first time. Learn wallet security and best practices first!
Making your first on-chain swap on a Decentralized Exchange (DEX) like Uniswap or PancakeSwap is a step.
And so on.
Take your time, learn, then take the next step action, but the journey begins at the first step.
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