In the Crypto Assets market, how can one determine whether a Token is worth investing in? There is now an analysis method based on on-chain data that can help investors make more informed decisions.

This method mainly consists of three steps:

First, check the distribution of the top 100 holding addresses for the Token. This can be achieved by observing the graph representing each wallet, where the size and color of the graph reflect the amount of holdings.

Secondly, analyze the concentration of token distribution. If it is found that one or two extremely large holding addresses account for a significant portion of the total circulation, such as over 80%, this may be a warning sign that requires extra caution.

Finally, check the flow of funds between addresses. If you notice frequent transfers of tokens between multiple addresses, it may indicate the presence of market manipulation.

For investors who want to conduct in-depth research, they can also leverage the power of the community to initiate surveys to verify whether there are instances of market manipulation. This approach not only helps individual investment decisions but also contributes valuable information to the entire community.

This on-chain data analysis method provides ordinary investors with a rational tool, allowing them to make judgments based on facts rather than guesses or emotions. It transforms vague market sentiments into visualized data, providing a more solid foundation for investment decisions.

In the uncertain cryptocurrency market, this data-driven approach is undoubtedly a sharp analytical tool that helps investors better identify potential investment opportunities and risks.