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Constant monitoring

Legal and jurisdiction

The rapid evolution of blockchain-based smart contracts creates problems with enforcing existing legal and jurisdictional rules.

Attempts to create a legal framework for future regulations face obstacles in the form of the need to combine existing regulatory rules with newly emerging mechanisms that are not yet regulated.

These attempts aim to combine the centralized model with the newly emerging decentralized model in order to avoid abuse and ensure the realization of the anticipated benefits of blockchain technology.

This allows for the assessment of risk fluctuations for projects based on location.

The solution to the problems of legal volatility in the context of evaluating cryptography projects is continuous scanning of changes in the jurisdiction of different countries and flagging of projects.


Focus on information

The token market is commonly associated with high rates of return and high volatility.
To benefit from this market fully, one must focus on information. Obtaining information is crucial to reducing uncertainty in the market actions. 

DYOR / reliable sources of information

Business activity in the cryptocurrency market and investing in crypto projects does not rely entirely on chance. 
Skills and strategy have a great impact on the results, however, all these actions give investors an illusion of control over the market and overestimate the role of knowledge and skills. 

The risk can be reduced by doing due diligence (research), comparing important details of projects from several sources, and conducting thorough research to assess the feasibility and potential of a project before potential investment.

It is necessary to deepen one's knowledge, improve oneself, resist the moment and take advantage of access to selected and rational information. 
It is also necessary for investors' decisions to be based on comparable data. The goal of doing DYOR (Do Your Own Research) is to concentrate and be transparent when making decisions.

Comparing data in combination with previously obtained information influences investors' decisions. A solution to this problem is the use of appropriate "classification" tools and access to current and reliable sources of information. 

Due to the ease of publishing in online media, there is quite a bit of disinformation on the crypto market. The user usually deals with the problems of excess information by relying on trusted sources. 

It is possible to use many sources of information relying on trusted origins and those sources whose information channel  does not depend on its finances (e.g. the source presents paid data and the YouTube channel is only an expressionless interpretation of the data).

By conducting one’s own research, one can respond appropriately to emerging scenarios on the market. One can also respond to them by significantly reducing the impact of emotions while making decisions, even at the beginning stage of choosing information sources.

Protection against scams

The solution to the problem of scams among projects, just as in previous cases, is to perform good, multi-layered research with special attention to the technical aspects of the project such as who is behind the tokenization, who is behind the project, as well as transparency and appropriate social media relationships.
The downfall of a project or its expiration due to the intended action of the creators can be foreseen in the case of good and detailed audits in the smart contract layers, although this may prove to be time-consuming (in the case of custom solutions when creating contract code).

Creating a good cryptographic project is a very expensive, time-consuming, and complicated process. This means that there will always be areas where the features of intentional fraud can be detected. Thorough, detailed, and multi-layered analysis of the project very often allows to detect whether it is a promising project or a scam project. 
It is common in such projects for scammers to resort to cunning socio-technical and psychological tricks, going beyond the standard deviations of other cryptographic projects. 
Furthermore, one must focus on the security of their funds - taking care of a good cryptocurrency wallet. In case of hacking attacks, the solution is diversification of the portfolio of projects.

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