Was looking through the ZKSwap project and assessing wether there’s potential in it.
Overall…there’s not much going on there, although there’s some substantial capital flowing into the project, much of it in terms of ZKSwap token transactions.
They’re aiming to be a contender in the Swap space, and their branding / leverage is really on the ZK technology. They’re not affiliated to ZKSync or Matter Labs, although they’ve tried to leverage on their brand name a little in their Github.
The main product live right now is their ZKSwap platform.
They do have a token, much of which is given out to community mining programs. Looking at the flow of money, it does seem like the team knows what they’re doing and is quite active. However, transparency is not exactly in the cards.
Obviously, the investors are looking for returns on their capital, so is the team. This is a relatively newish project, where the returns are not locked yet. Value has been flat since May crash.
It has recently done up a rebranding - so there must be quite a few things the team has been figuring out internally.
Let’s lay out a couple of scenarios, based on worst case to best case.
Worst case: Project does a rug pull and disappears, leaving us a bunch of worthless tokens. This is entirely possible as the team is Anon and the ‘security audits’ are kinda sketchy. However, the VCs have a reputation to maintain.
Bad case: Project stagnates, doesn’t grow in value, and eventually withers and dies.
Likely case: Project token value grows in tandem with rest of Defi value.
Best case: ZKSwap usage goes up. Hype is built. Pumps successfully. Investors cash out.
Question: has the initial round of investors already cashed out? Because there’s a very steep selloff in Feb 2021 when price pumped 10x.
Why am I investing in this project in the first place? It’s because there’s quite a lot of contract activity.
What kind of contract activity are they? Are they all swaps? Who are the people interacting with the contracts?
Let’s try to examine it.
ZKSwap
Okay - none of the event logs return decoded information. I don’t have much insight as to what goes on. But I would imagine that they’re swaps done on the ZKSwap platform.
So the way I see it is - there’s no reason to ape into this project. I am not calling the shots - I am mere retail fish. Okay - I have some basic information about this project. But not much insights for me to act on.
And that is because I don’t have a checklist or framework for approaching how to ape into coins or NFTs.
I think a lot of it boils down to being an early adopter - a power user of the protocol. Then, you’d be able to see the value.
Perhaps I should try, then.