Management decisions regarding innovative projects at their early stages of development: An example of a methodology for assessing crypto projects
-
DOIhttp://dx.doi.org/10.21511/ppm.21(4).2023.25
-
Article InfoVolume 21 2023, Issue #4, pp. 316-333
- Cited by
- 387 Views
-
104 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Innovative projects can be very costly, and making mistakes in their implementation can be expensive for organizations and investors. Therefore, appropriate procedures are needed to minimize the likelihood of such errors, facilitate strategic decision-making, and optimize investments. This paper presents a methodology for assessing the viability and potential of cryptocurrency and blockchain projects based on evaluating individual project components and synthesizing these assessments.
The proposed approach suggests considering a project as a collection of individual components with clear metrics that can be assessed; various assessments of these metrics are introduced. As a result, a project manager or investor assigns ratings to its metrics when analyzing several projects and then calculates a final assessment for each project. A project manager can determine the most promising project by comparing the reviews of several projects.
This methodology stands out for its simplicity and clarity, and a significant advantage is its reliance on only publicly available data. This approach can be applied as the first step in making investment decisions regarding a specific project when working with investment funds or launchpads, for example.
Acknowledgment
The paper is prepared within the scientific research project “Fundamentals of the phase transition to the additive economy: From disruptive technologies to institutional socialization of decisions” (№ 0121U109557), funded by the general fund of the state budget of Ukraine.
- Keywords
-
JEL Classification (Paper profile tab)М00, G30, О30, С80
-
References44
-
Tables4
-
Figures8
-
- Figure 1. The tree of components for evaluating a crypto project
- Figure 2. Decomposing a product component into metrics
- Figure 3. Decomposing a token component into metrics
- Figure 4. Decomposing a team component into metrics
- Figure 5. Decomposing a community component into metrics
- Figure 6. Decomposing an investors component into metrics
- Figure 7. Decomposing a marketing strategy component into metrics
- Figure 8. Decomposed tree of metrics, components, and corresponding evaluations of the crypto project
-
- Table 1. Metrics of the crypto project and their evaluation
- Table 2. Comparative evaluation of cryptocurrency projects
- Table 3. Evaluation of the crypto project Eywa based on the developed metrics
- Table 4. Evaluation of the crypto project Portus based on the developed metrics
-
- AL Afaishat, T., Khraim, H., & Al-Maadhedee, M. (2022). Effect of network strategic capabilities on digital transformation in Jordanian universities. Problems and Perspectives in Management, 20(3), 247-257.
- Ball, M. (2022). The Metaverse: And how it will revolutionize everything. Liveright.
- Blikhar, V., Lukianova, H., Komarnytska, I., Vinichuk, M., & Gapchich, V. (2023). Problems of normative and legal regulation of the process of applying blockchain technology in the financial system of Ukraine. Financial and Credit Activity: Problems of Theory and Practice, 3(50), 410-418.
- Book, T. K. L. (2022). Kayaking Log Book Crypto Good Eat Sleep Tokenomics Repeat Graphic: Tokenomics Gifts for Him: Track Your Kayaking Adventures – Kayak Journal to Record Team / Paddle Partner, Gear and Equipment, Body of Water, Trip Goals and Route – Gift Idea for Kayaker, Life. Independently Published.
- Bow Now. (2022, March 16). What is product-market fit (PMF) and why is it critical for startup success?
- Bublyk, Y., Borzenko, O., & Hlazova, A. (2023). Cryptocurrency energy consumption: Analysis, global trends and interaction. Environmental Economics, 14(2), 49-59.
- Buterin, V. (2014). A next-generation smart contract and decentralized application platform (Ethereum White Paper).
- Canale, A., Durante, D., Paci, L., & Scarpa, B. (2018). Studies in neural data science. Springer.
- Cote, C. (2022, March 24). Product innovation: What business leaders need to know. Harvard Business School.
- Crypto Trader & Crypto Gladiator. (2021). Bitcoin and cryptocurrency: The ultimate cryptocurrency trading and investing guide. Crypto Trader & Crypto Gladiator.
- Cryptocurrency World. (2018). Cryptocurrency market: Making wise investment decision. Independently Published.
- Cummings, J., & Tapscott, A. T. D. (2016). Blockchain revolution. Penguin Random House LLC.
- d’Arge, R. C., & Shogren, J. F. (1989). Chapter 2. Non-market asset prices: A comparison of three valuation approaches. In H. Folmer & E. van lerland (Eds.), Studies in Environmental Science (p. 15-36). Elsevier.
- Farrell, M. (2023, January 6). Data and intuition: Good decisions need both. Harvard Business Publishing.
- Fisher, E., & Zizlavsky, O. (2021). Innovation scorecard: A method to measure innovation in agile projects and business environments. Springer International Publishing AG.
- Gagliardelli, L., Zecchini, L., Ferretti, L., Beneventano, D., Simonini, G., Bergamaschi, S., Orsini, M., Magnotta, L., Mescoli, E., Livaldi, A., Gessa, N., De Sabbata, P., D’Agosta, G., Paolucci, F., & Moretti, F. (2023). A big data platform exploiting auditable tokenization to promote good practices inside local energy communities. Future Generation Computer Systems, 141, 595-610.
- Ghose, R. (2023). Future money: From Fintech to Web3. Kogan Page, Limited.
- Gosztonyi, M., Csákné Filep, J., & Zsigmond-Heinczinger, S. (2022). Comparison of applicability of startup life cycle theories based on natural language processing. Eastern European Economics, 60(6), 511-539.
- Graham, B. (2016). The intelligent investor: The definitive book on value investing. Shanghai Yuandong Press.
- Hayes, A. (2003, July 15). Venture capital: What is VC and how does it work? In C. Murry & H. D. Jasperson (Eds.), Investopedia.
- IEEE Xplore. (n.d.). Technological complexity: A support to management decisions for product engineering and manufacturing.
- Kleiman, D. (2020). First pitch: Winning money, mentors, and more for your startup. Babson College Publishing.
- Kolbe, A. L. (1984). The cost of capital, estimating the rate of return for public utilities. MIT Press.
- Korneyev, M., Berezhniuk, I., Dzhyndzhoian, V., Kubakh, T., & Horb, K. (2022). Business marketing activities in Ukraine during wartime. Innovative Marketing, 18(3), 48-58.
- Kravchenko, O., Nebaba, N., & Aiyedogbon, J.O. (2022). Blockchain technologies in accounting: Bibliometric analysis. Accounting and Financial Control, 4(1), 14-29.
- Lacity, M. C., & Treiblmaier, H. (2022). Blockchains and the token economy: Theory and practice. Springer International Publishing AG.
- Lord, W. P. (2021). Designing for social connectivity (Not everyone likes webcams). eLearn, 2021(4).
- Maganis, J. (2023). Top VC crypto investment funds (UPDATED 2023). Crowdcreate.
- Malik, F. (2010). Book review: Roderick Martin, Peter D. Casson and Tahir M. Nissar Investor engagement – Investors and management practice under shareholder value Oxford: Oxford University Press, 2007, £45.00 hbk (ISBN: 978-0-19-920260-7), xvii+219 pp. Sociology, 44(1), 172-174.
- Mayer, C. W. (2015). 100 baggers: Stocks that return 100-to-1 and how to find them. Laissez Faire Books.
- Panigrahi, S. (2023). Are cryptocurrencies a threat to financial stability and economic growth of India? Evidence from the cointegration approach. Investment Management and Financial Innovations, 20(2), 307-320.
- Polinkevych, O., Glonti, V., Baranova, V., Levchenko, V., & Yermoshenko, A. (2021). Change of business models of Ukrainian insurance companies in the conditions of COVID-19. Insurance Markets and Companies, 12(1), 83-98.
- Power, T., & Au, S. (2018). Tokenomics: The crypto shift of blockchains, ICOs, and tokens. Packt Publishing.
- Rahyuda, H., & Candradewi, M. R. (2023). Determinants of cryptocurrency investment decisions (Study of students in Bali). Investment Management and Financial Innovations, 20(2), 193-204.
- Ryan, P. (2019). Trust and distrust in digital economies. Taylor & Francis Group.
- Sarah. (2021, August 23). Risk factor summation method: Everything you need to know. Eqvista.
- Skrynnyk, O., & Lyeonov, S. (2022). Emerging trends and research focal points of information technologies for financial control and accounting at the state and corporate level: Bibliometric research and visualization. Accounting and Financial Control, 4(1), 49-62.
- Solomon, M. G., Kent, P., Laurence, T., Danial, K., & Bain, T. (2022). Cryptocurrency all-in-one for dummies. John Wiley & Sons, Incorporated.
- Statista Research Department. (n.d.). Global blockchain startup financing history 2021. Statista.
- Voshmgir, S. (2020). Token Economy: How the Web3 reinvents the Internet. Token Kitchen.
- Waspada, I., Salim, D. F., & Krisnawati, A. (2023). Horizon of cryptocurrency before vs during COVID-19. Investment Management and Financial Innovations, 20(1), 14-25.
- Yallop, A. C., Baker, J. J., & Wardle, J. (2022). Market research and insight: Past, present and future. International Journal of Market Research, 64(2), 163-168.
- Young, J. (2022, May 16). Metrics. In G. Scott & S. Kvilhaug (Eds.), Investopedia.
- Zakaria, L. Q. b. (2011). Analysing the content of Web 2.0 documents by using a hybrid approach (Thesis). University of Southampton.