Use Case > Hype

Does this project/token actually solve a problem?

Because if it doesn’t, there’s no long-term demand.

In crypto, a lot of projects sound great on paper.

They have slick websites, strong narratives, and flashy buzzwords like AI, DePIN, or Real-World Assets.

But here’s the real question we should be asking:

If the answer is “no,” we’re looking at hype — not utility.

🎯 What Makes a Token Valuable?

For a token to retain long-term value, it needs real economic demand.

That happens when the token is:

• Used inside or for a product

• Required to access something valuable

• Part of the core mechanism that makes the platform work

Otherwise?

The token exists just to raise capital… and in most cases dump on retail.

✅ Examples of Real Use Cases

1. Ethereum (ETH)

You need ETH to pay for transactions on the Ethereum network.

No ETH = no smart contracts.

It’s a core asset, powering the current DeFi and other narratives (NFTs, Metaverse, …).

2. Chainlink (LINK)

Chainlink connects smart contracts to real-world data.

Apps pay LINK to access price feeds and oracles.

It’s a necessary infrastructure.

Key note: The fact that the token has utility doesn’t justify its price; that’s a separate question.

❌ Red Flags to Watch Out For

• The token isn’t needed — it’s just “there” to speculate

• Whitepapers that don’t explain why a token is needed

• Projects that could function better as a traditional SaaS app

• It’s used for governance with no real rights or decision-making power

• Buzzword bingo: AI, NFTs, DePIN, L3, Metaverse — with no proof of concept

✅ 3 Quick Questions to Ask

1. What problem does this solve?

2. Does it need a blockchain to solve it?

3. Does the token do something essential, or is it just an addition?

If you can’t easily answer those — walk away.

🔍 Tools to Dive Deeper:

• Official docs & whitepaper (always start there)

• Messari Project Reports

• Crypto Twitter threads from real builders (not “shillers”)

Next Week:

We’ll explore maturity & history — why a flashy new token might be way riskier than an older one that’s already survived a bear market.

If you’re serious about allocating into crypto strategically, I offer a few free calls each month. Book here.

(Limited spots. Priority to engaged subscribers)

Until then…

– Matt