Key Principles For Evaluating DeFi Token Investments

According to Odaily, top trader Eugene Ng Ah Sio shared three essential principles for assessing the value of DeFi token investments in a Telegram group. Despite improvements in the regulatory environment in recent years, he believes there is still a gap in viable investment strategies. Ng emphasizes that project teams must prioritize the interests of token holders, placing them at least on par with equity holders. Additionally, business models should not rely entirely on cryptocurrency speculation cycles to avoid valuation failures during bear markets when trading volumes plummet. Lastly, the execution capability of the team is crucial, requiring either technical barriers or exceptional execution skills. Ng noted that currently, only a few protocols meet these standards, and he plans to invest when the time is right.