D-Core is a powerhouse for information about blockchain projects poised to disrupt traditional businesses. Through a proprietary system, we’ve created a world-wide network of experts that crowdsources research and rewards specialists for analysing start-ups. 

Our specialised network of researchers crowdsources, investigates, and analyses credible information to determine the financial potential of investing in individual blockchain projects. This information is then anonymised and verified by a diverse panel of seasoned investors and industry insiders to ensure its transparency and integrity. The result of this are financial reports, which contain all the information compiled by D-Core. These reports are then available on our website, accessible through a subscription. 

No. Although our partner fund, the KMG Blockchain Fund, does invest in specific projects that we highlight, D-Core does not provide direct investment services. Premium users of D-Core, however, can access the specifics of the KMG blockchain investment portfolio (including their decisions and allocations) and our latest research.

D-Core is incorporated in the U.K., with some of our team located in Cyprus. Our research is performed by approved specialists distributed across the globe. These researchers submit their answers to specific questions for review to our Quality Control team, and get rewarded based on the value of their contributions through the Steem blockchain. All answers are judged by a panel of experts, either remotely or in one of the D-Core offices in London and Cyprus.

To subscribe to D-Core’s free or Premium services, go to https://platform.d-core.net/register/. In there, you can choose between registering for a Free (which allows you to see some of D-Core’s reports and financial information) or a full membership, which gives you full access to our platform and can be paid monthly or annually. 

Pro tip: If billed annually, you’ll receive a 18% discount on your membership!

Our Pro membership is €799 a month, or €8,000, if paid annually. 

Yes. You can always cancel your subscription for whatever reason. However, we are currently not able to provide reimbursements, so we encourage you to get in touch with us at [email protected] to voice your concerns if you have any.

The number of reports D-Core produces per month fluctuates depending on the vibrancy of the market at that time, and the availability of projects that we find are research-worthy. 

With that being said, under ‘normal’ market conditions, we would typically produce around five to eight reports per month. We believe this figure provides enough flexibility for our research team to thoroughly examine projects without reaching a point of diminishing returns, maintaining our high standards of quality. We also reserve our right to select projects that we believe have the potential to disrupt the market and subsequently see significant upside in their valuations, and to determine which companies fit this criterion based on our judgement.

We are always looking for new researchers! Our decentralised, merit-based system allows us to incorporate new experts continuously, so there’s always space for new talent.

To apply to become a D-Core researcher, go to https://d-core.net/join-us/. There, you’ll be asked to fill out your personal information, and take a test. This test will help us direct you towards the field where your input and expertise are needed the most. Over time, and as you advance your career as a D-Core researcher, you’ll be able to apply to participate in more fields.

For more information, please review our “How to Become a Researcher” guide.

We focus on the following categories:

• Market & Product. 

We analyse the viability of a project based on its intended product and market fit. Projects that have a minimum viable product (MVP) with active users, therefore, have a higher chance of performing well in this regard, with crypto investors generally preferring them. 

We also analyse the market in which the team intends to launch the project. This includes looking for active competitors and differentiators, as well as the viability of launching within the projected timeframes. 

• Team.

We look into the people working on transforming a project into a reality: Have they successfully launched tech products? If not, do they nonetheless have a background that shows potential? What have they done in their past? Do the advisors on a project’s website have a high profile and are actively involved in the development of the project? 

This step of our research is important in determining the direction of a blockchain project, since it helps us identify strengths, weaknesses, and past activity by team members that could determine a project’s success. 

• Token Specifics.

We carefully review the specifics of each project’s intended token to see if it can be valuable and provide value to its projected ecosystem. To do this, we rely on our Venture Partner team, with experts from startup, technology, and finance backgrounds. 

• Technology.

It goes without saying that the technology behind any DLT or blockchain project is absolutely fundamental to its success. If a project has available technology with a clear use case or existing users, we analyse its fundamental qualities and how it aims to impact its industry. If it doesn’t, we carefully review the plans for technological development that the project proposes, as well as the feasibility of them successfully launching these plans. 

We also break down the possibilities of successfully implementing new technologies in the chosen field, and the potential that they have to create a long-lasting impact.

• Legal & Compliance.

Is a project launching within challenging legal contexts and jurisdiction? If so, why? Do they have a legal team that specialises in technology and innovation? Can they adapt to regulation changes, were they to happen? Our researchers look at questions of this character to determine if a team is prepared to comply with regulations, protecting their and their investors’ long-term interests. 

• Tokenomics.

Every blockchain project involves the use of a token, sometimes referred to as a coin. These tokens vary widely in their purpose, and their value is determined by individual factors. Tokenomics is an umbrella term used to describe the factors surrounding a project’s use of its tokens, which can vary depending on the team’s intentions and purposes. As such, within this category we review the company’s intended business model, purpose of tokens, token value, and minting/issuing models, among other things. 

We are able to examine utility and security tokens, whether they are coming to market via an ICO, IEO, or STO.

• Social, Virality and Community.

Retail investors and an online community are the driving force behind the fundraising round of a token sale. In such circumstances, marketing is a critical component of a successful launch and project development, and is therefore an aspect to take into account when investing in the competitive blockchain sphere.

Our marketing researchers analyse the social media network of a project to determine the size of their organic following, analyse their behaviour and communication, and assess their potential to grow and successfully multiply investors’ contributions. 

We notify projects about our wish to analyse them, and even reach out to them for commentary on certain aspects. We also encourage our investigators to reach out to company staff, which helps us gauge their responsiveness. However, we are careful as to avoid the possibility of having projects tailor their stories and marketing materials to fit our expectations to receive a positive review.

We strive to be as comprehensive and objective as possible, and therefore cannot operate on requests. Instead, we decide on which projects to analyse solely based on recommendations by our network of experts and from the nomination system set in place for our researchers.

Blockchain is a Decentralised Ledger Technology (DLT), originally created to launch the first Peer-to-Peer Electronic Cash System: Bitcoin.  

A blockchain, at its most basic form, constitutes a system that keeps a list of records using cryptography. In this system, various parties enter information that is progressively kept and protected by cryptography, which makes it resistant to modification and thus immutable. This information is then saved on a distributed ledger, which means it does not exist in a single cloud or storage unit, but simultaneously on several ones. 

These distributed characteristics make blockchains secure, to a great extent, by design. Blockchains also avoid the typical dangers of centralised information, since they can be accessed publicly and require a consensus by the whole network to make any additions to future blocks.

The blockchain’s security and decentralisation-oriented approach make it an ideal network to host consensus algorithms, which issue rewards to users for performing set tasks. For example, the Bitcoin network rewards users for progressively protecting and securing the Bitcoin network through encryption.

While all blockchains are DLTs, not all DLTs are blockchains! A blockchain is merely a way to create a decentralised ledger, using blocks as a base for this system. There are many other ways to create a decentralised database without necessarily utilising blocks, which allows DLTs to use different (if any at all) consensus algorithms than blockchains. DLTs are, therefore, more prevalent within organisations, since they provide all the security advantages of blockchains without the escalation or consensus algorithm concerns. An example of this is the Directed Acyclic Graph (DAG) which features a system with interconnected nodes without blocks.

Since a blockchain rewards those that contribute to their intended purpose, the structures of power fluctuate seamlessly within them, benefiting those that provide the most value to the network. This creates the possibility of creating markets to organically organise communities, disrupt existing industries, and decentralise power structures, eliminating many sources of conflict. 

Because of this, many believe that blockchains could represent the most significant technological advance since the creation of the Internet, especially when combined with other tech trends like AI and IoT. Since the primary application of this technology, cryptocurrency, has managed to advance and grow organically despite regulatory concerns and scepticism, the upward trend is expected to continue. 

Blockchains could signify a revolution in multiple aspects of daily life where networks are involved. Therefore, markets, social media, finance, governments, and many other networks are all subject to be transformed. Many individuals and companies have realised this, and are dedicating time and effort to build and grow decentralised, blockchain-based solutions for everyday problems, creating an attractive niche for tech investors to allocate resources to back these projects.

There are many different models that blockchain companies use to raise funds for their development. These models vary in different ways and are often abbreviated, which can be confusing to those entering the space for the first time. Some of the most common ones are:

• ICOs: An Initial Coin Offering (ICO) is the cryptocurrency equivalent of an Initial Public Offering (IPO), that takes place when a company’s shares are first offered publicly. In an ICO, investors usually fund a company’s development in exchange for tokens, which can be traded openly in the cryptocurrency market. This model, formerly the most popular one in the blockchain space, is still largely unregulated and has presented irregularities (such as fraud) in the past, making investors wary and leading to the development of other crowdsourcing strategies. Tokens offered on ICOs are usually considered utility tokens by regulators and tend to have a function within a blockchain ecosystem. 
• STOs: A Security Token Offering (STOs) is a more secure, and usually more susceptible to regulation funding method that consists in offering tokenised securities in exchange for capital. Following the controversy behind many fraudulent ICOs, STOs were developed to provide investors with a safer way to participate in crowdfunding projects. Investing in STOs is typically done by purchasing tokens backed by assets (whether these are equities, shared income, or others), as opposed to tokens with a value determined by the free market. STOs are regulated in the US, the EU, Australia, Canada, and many other Western nations, which means that companies performing STOs can be legally prosecuted in case of misbehaviour.
• IEOs: Another response to generalised distrust in the ICO model, Initial Exchange Offerings were created to mitigate risks for investors by holding the token offerings on trusted platforms. In this model, a company usually holds its token offering on an exchange’s platform, which assures investors that tokens will be immediately liquid and available to be traded for other cryptocurrencies or sold for a national currency. To perform an IEO, a company usually has to meet the criteria designed by the exchange they want to list on, which can include legal, code, and financial audits, as well as background checks. In the IEO model, all parties have incentives to conduct due diligence and protect investors’ interests. 

It’s important to remember that the models quoted above are not the only funding strategies used by blockchain projects, and that our descriptions are meant to be simplifications and not exhaustive explanations. When investing in blockchain projects, users are expected to know the intricacies of each model, as well as to make sure that they understand the details behind the project’s funding rounds. 

What happens after you invest in a blockchain project depends on the stage or phase on which you entered:

• If you invested as a part of a crowdfunding round (such as an ICO, STO, IEO, etc.), you’ll typically receive your tokens after the funding for the project is completed, or receive a reimbursement in case that the project cannot reach its funding goals. This process depends on the specific criteria of the project: Some may choose to lock tokens away during their developmental stage to prevent users from immediately selling large amounts of them in the free market, affecting their price and therefore the returns of other investors. Whether this is the case or not, if your investment is completed, your tokens will eventually be sent to a crypto wallet (see next question) of your choice. 
• If you invested on an existing crypto project with tokens that are actively trading, you’ll typically receive them in a crypto wallet of your choice, or, if you purchased them through an exchange, in a wallet created within its platform. In the latter case, it’s essential that you immediately take steps towards reallocating your funds to a secure wallet of your own. 

There is a misconception (mostly due to the terminology surrounding cryptocurrencies) that crypto wallets store cryptocurrencies inside them, like a wallet in your pocket. However, cryptocurrencies do not exist inside wallets or move around like regular money. Instead, they exist within the blockchain, and a cryptocurrency transaction is basically a third party assigning the ownership of the keys to access them to you, through your private wallet. 

This difference makes it important that you understand wallets, how they work, and how to use them to store your cryptocurrencies securely. 

A crypto wallet can be developed by a private company, by individuals on the Internet through open-source code, by a cryptocurrency issuer as an official product, or by an exchange to use within its platform. They can also support multiple or just a single (crypto) currency. Since a wallet holds the keys to your coins, and therefore your money, you must abstain from storing your currency on wallets that aren’t yours (like exchange wallets), and make sure that you’re the sole owner of your private keys. It’s also highly recommended that you store your cryptocurrency on an offline device, which is known as cold storage. 

The different types of crypto wallets are: 

1. Paper wallets: The simplest kind of wallet. A paper wallet only requires you to generate it online, print your private keys (often along with a QR code that you can later use to transact more easily), and a safe place to store it. You can then use your private keys to access your coins.
2. Online wallets: An online wallet is both the easiest to use and the least secure solution. While your coins are stored in the cloud (either in an exchange wallet or on a third-party server), and these wallets often present well-designed, user-friendly platforms, they are very vulnerable to attacks and fraud. However, transacting in online wallets is often more agile.
3. Software wallets: Software wallets can be mobile or desktop-based, and they allow you to transact with and store your coins in a single device. You can then set this device offline for maximum security. Hacking and viruses are the greatest threats to these wallets, as well as theft. 
4. Hardware wallets: The safest solution, hardware wallets store your funds in an offline device with built-in security, which can then be plugged into any computer with an Internet connection to transact. Users handling large sums of money are often encouraged to use these solutions, since the cost of lost funds can be much higher than the cost of purchasing the wallet. Hardware wallet users can also generate a ‘seed’ phrase to restore their access in case their device gets lost. 

• Backup your wallet: This is not an option for online storage users, but most wallets can be backed up, as well as protected, combining different solutions. 
• Update your software: Make sure you always have the latest version of the software of your desktop, mobile, or hardware wallet installed, and that you understand what every change entails. 
• Have good cyber hygiene: Always use long and complicated passwords. Don’t install any suspicious or potentially malicious software. Keep an eye out for scams and thieves. In general, users tend to forget that everything that happens online is connected to the entire world. However, you can always protect yourself by being careful and maintaining good cybersecurity practices. 

Many big names in diverse industries have already adopted the use of blockchain solutions. In fact, six out of Forbes’ Top 50 FinTech companies for 2020 are in some way involved with blockchain. Other big names using or adopting blockchain for particular processes are Amazon, Walmart, Facebook (famously developing Libra, a cryptocurrency project that raised the question of whether Facebook tries to imitate central banks), ING, Mastercard, Microsoft, and Nestle.

Decentralised Finance, or DeFi, is the effort to create fully decentralised financial services, such as lending, exchanging, derivatives, and others, even betting, on the blockchain. 

Decentralised Finance heavily relies on blockchain applications (particularly those based in Ethereum) to exist, since smart-contracts, code on the blockchain open for anyone to examine, power these services. The smart-contracts, code in the blockchain that is open for anyone to see, operates within the dApp (Decentralised App) platform autonomously running financial services based on algorithms. Services such as lending, for example, pay interest to lenders by automatically adjusting their yields to match the number of borrowers. 

The leading DeFi applications are, in order, Maker, Compound, and Synthetix. Estimates indicate that Maker currently holds over 60% market dominance. Of the total $1.18 Billion in value locked in DeFi, around 90% is locked in lending apps. DeFi is still subject to the crypto market’s volatility.

Blockchains offer improved security as opposed to centralised systems precisely because they are decentralised. Since within a blockchain the ledger that keeps track of all transactions is not stored in a single place but distributed among many nodes (i.e. computers running the network), an attacker needs to tamper at least 51% of these nodes to be successful. In large enough systems (like the Bitcoin blockchain) this is practically impossible, making an attack highly unlikely. Therefore, one could consider the number of nodes in a blockchain a good representation of its security. 

No. Cryptocurrencies exist because of a blockchain, which is their underlying technology, but they are not the same thing. For example, there can be blockchains without cryptocurrencies, although some experts argue about the need for them. There can also be cryptocurrencies that do not use a blockchain, but instead use another form of Decentralized Ledger Technology (DLT).

The blockchain’s security and decentralisation-oriented approach make it an ideal network to host consensus algorithms, which issue rewards to users for performing set tasks. For example, the Bitcoin network rewards users for progressively protecting and securing the Bitcoin network through encryption.

Since Bitcoin was the first-ever cryptocurrency, both terms started being used interchangeably. However, as cryptocurrency grew in popularity (and diversified), so did the importance of separating both notions. Although it is still technically correct to use the term “bitcoins” to refer to other tokens and coins, it is advised for users to only use the word “Bitcoin” to refer to that particular coin. Users can refer to other currencies using words such as “crypto”, “cryptos”, “tokens”, “coins”, or by their official names.

Cryptocurrencies are useful for both storing and transacting with value, such as other assets like fiat currency or even precious metals. The essential quality of a reliable cryptocurrency, however, is the possibility to transact seamlessly across borders, with low to no fees, in large or incredibly small amounts, at all times, anywhere. This type of currency is also useful for users living in inflation-affected nations as a store of value, and as a minimalistic approach to money since it takes zero physical space to store.

Not every cryptocurrency’s value changes drastically, or at all. There are currencies backed by assets and therefore designed so that their value stays pegged to the asset’s value, whether these are natural resources, euros, dollars, or company stock, to mention a few. These cryptocurrencies are often known as ‘stablecoins’ or ‘asset-backed’ tokens. 

Other currencies (like Bitcoin) are used to both store and transact with value and are offered and traded in the free market. As such, the free market determines their value based on their perceived utility. Cryptocurrencies are also used as a vehicle for financial speculation (like stock trading) which can cause their value to vary based on news, manipulation, or trading strategies. 

Yes. Many cryptocurrency exchanges allow users to purchase cryptocurrencies using euros, dollars, etc. Users can also use these intermediaries to exchange cryptos for “fiat” money. 

All cryptocurrencies exist uniquely within a DLT at all times, and cannot be sent elsewhere. What users often refer to as ‘cryptos’ are the keys to access and transact with cryptocurrencies on the DLT. These keys can be stored in a ‘cold storage’ method, such as a phone, computer, disk drive, or ‘Ledger’; or even in handwriting or printed on a paper, referred to as ‘wallet’. 

Some cryptocurrencies are meant to be used for speculation and trading, others as a store of value, and others for transactions. The utility of cryptocurrencies to store value, therefore, depends on every unique user’s goals, risk tolerance, and other factors such as the fees they’re willing to pay to acquire cryptocurrency, need for liquidity, etc.

When we talk about cryptocurrency adoption, we refer to how many people use crypto to perform everyday operations. Since this number relays purely on consumers’ hands, there are a few factors that determine how fast and how much this number grows:

• The availability of information on how to use cryptocurrency, issued by trustworthy sources.
• The reputation of the cryptocurrency industry and perceived security of using cryptos for payments. 
• The overall cryptocurrency/financial education and technology savviness of populations.
• The availability of user-friendly platforms for users to transact and teach others how to issue and receive payments in cryptocurrency.
• The fluctuations in the cryptocurrency market and perceived stability.
• The speed in which transactions are performed on the blockchain, often measured in transactions per second (tps).
• Internet and technology availability. 

While all of the factors mentioned above are important for cryptocurrency adoption, the speed of the network remains the main obstacle for spreading use. 

Blockchains and DLTs are highly encrypted for money to stay safe, which causes slow processing speed and a low tps number, causing vendors to feel uneasy receiving payments in cryptocurrency. The crypto community understands this number to be very significant for the future of digital money and continuously looks for new ways to accelerate technology up to the point where it is possible to run seamless payment platforms. 

It is certainly possible to invest in cryptocurrencies. Many people worldwide do so, as they believe the use cases for some of them can bring revolutionary advances to many industries, along with increased demand that boosts their prices. As such, many models of investment involve cryptocurrencies, such as ICOs, STOs, IEOs, and others. Companies, especially those in these crowdfunding rounds, often offer facilities for investors purchasing their cryptocurrencies, such as bonuses that guarantee returns at the time of issuing. 

We urge users looking into investing in cryptocurrencies to at all times conduct their own research. We also remind you that cryptocurrencies are largely unregulated and that, although they present the potential for high earnings, they are a high-risk investment. Users that do not fully understand cryptocurrency are encouraged to learn more and educate themselves before taking any financial risks. 

The leading DeFi applications are, in order, Maker, Compound, and Synthetix. Estimates indicate that Maker currently holds over 60% market dominance. Of the total $1.18 Billion in value locked in DeFi, around 90% is locked in lending apps. DeFi is still subject to the crypto market’s volatility.

Since many cryptocurrencies trade in the free market, this opens the possibility for speculation, as it occurs with stocks. Traders intend to read and predict the markets to make a profit buying currencies at a low price and selling them at a higher one. This strategy is much more hands-on than investing and requires more time and involves uncertainty. 

However, since cryptocurrency exchanges make it extremely accessible for users to exchange currencies within their platform, and because of the speculative and volatile nature of these assets, many users actively trade. As with investing, we advise uneducated investors to stay away from trading before they seek to learn more about the technology and industries behind cryptocurrency to avoid losses and unnecessary risk.

Venture Capital (VC) is a form of private equity financing that is provided to startups, early-stage and emerging companies with demonstrated high growth or high potential for growth. These investments are often made in exchange for equity or partial ownership of the company, resulting in potential high profits for investors. It’s also common that investors offer continued mentorship or advice to businesses along with funds. 

Due to the nature of the companies applying for this type of financing (usually high-tech companies), VC is seen as a high-risk, high-reward endeavour. VC is one of the fastest-growing industries in the world.

Investing in emerging technologies is always risky, due to the lack of regulations, the intrinsic slowness of the regulating process, and lack of precedents that help ensure their success, among other things. In addition to this, fraudulent schemes are not unheard of in the cryptocurrency and blockchain world. 

The DLT/blockchain industries have grown precisely due to the trust and drive of investors, some of which have made meaningful returns over time. Institutional investors are now shifting their gazes towards blockchain and DLT because the technology and companies driving this space have made it clear that there is a significant potential of profiting in it. Just like Venture Capital, these types of investments are not risk-free but can offer rewards for those that can tolerate the risk. 

With new industries, regulation always seems to come too late and too slowly. Some rules govern some aspects of cryptocurrency and blockchain investing, in particular crowdfunding and token sales, but they are, still, far from satisfying every question in every investor’s book. 

There are too many points of view about regulation in the crypto-sphere to cover in this FAQ, but, certainly, true decentralisation can never be fully regulated. Or at least, it is infinitely complex to enforce the regulation of decentralised currencies. This could mean that, regardless of opinion, Decentralised Ledger Technologies and digital money are here to stay. 

Whichever way regulations surrounding these industries are set up, it’s safe to assume that they will be created in a way that protects investors, both institutional and retailers. Institutional investors, then, have an incentive to wait for regulations to settle, but can also profit from investing before a massive amount of their peers flock towards this space. 

Investors should also perform their due diligence when researching projects to make sure that they understand the regulatory frames within which they are launched. As a part of our research process, we look into the legal team behind any project, which also includes looking into their compliance practices and jurisdiction, and we strongly encourage you to do the same. Regulations might be unclear in some jurisdictions and countries. Still, a team and a project that intends to comply with them and plan according to the diverse regulatory scenarios will always be preferable to those that seem to be hoping for the best possible scenario.

The leading DeFi applications are, in order, Maker, Compound, and Synthetix. Estimates indicate that Maker currently holds over 60% market dominance. Of the total $1.18 Billion in value locked in DeFi, around 90% is locked in lending apps. DeFi is still subject to the crypto market’s volatility.

D-Core was created to benefit serious and institutional investors. 

The blockchain and DLT space is extremely complex and changes very fast, and, with unclear and insufficient regulations in place, it’s essential to perform extensive research before investing in projects. This research, apart from being time-consuming, can be extremely diverse. Those trying to assess a project’s viability and future may need to, for example, be marketing and social media savvy, well-read on cryptocurrency regulation, familiar with a diverse range of industries, and have a rather broad set of skills and knowledge. 

Blockchain and DLT projects, as happens with all emerging industries, can make for extremely profitable investments. The above problem, however, makes the prospect of joining the space intimidating for institutional investors and those coming from “traditional finance”. At D-Core, we intend to bridge this gap, providing investors with sufficient information and recommendations that familiarise them with worthwhile projects that deserve their attention. Our unique decentralised system acts as a filter for our own biases, and as a wide net to capture as much information as possible in short periods, to then present succinctly. We aim to create a worthwhile subscription system that offers investors valuable, easy to consume information with relatively high frequency and effectiveness. 

Not necessarily. Some projects do offer the option to purchase shares of their company through/as cryptocurrency, but this is not the norm, and there is an important distinction to be drawn between those and the rest.