Lecture 2.0.0. SOC 4-Year Scorecard
The SOC 4-Year Crypto Scorecard consists of five items that must be analysed, with each item having three investigative questions.
Item 1: Coin Supply
Evaluative Question 1: Is the maximum coin supply known?
This seeks to know the fifth-level transparency of the crypto project.
Evaluative Question 2: Is the total coin supply known?
This seeks to know if there are coins that have been burnt, hence, determining the first-level scarcity of the crypto, which affects the market price.
Evaluative Question 3: Is the circulating coin supply the same as the total supply?
This seeks to identify any hidden centralisation of the crypto that can be used to dump the coin later in the market. By this, it seeks to establish the sixth-level transparency.
Item 2: Use Case
Evaluative Question 1: Does it solve any specific need of humanity?
This seeks to ascertain the first-level relevance of the crypto project.
Evaluative Question 2: Are there two or more unique use cases of the crypto project?
This seeks to establish the first-level uniqueness as well as second-level durability of the crypto project because the more functions it has the more unique and the longer the project will last.
Evaluative Question 3: Is there or will there be a DeFi application in the crypto project within 12 months?
This seeks to establish third-level durability and second-level relevance of the crypto project.
Item 3: Market Value
Evaluative Question 1: Is it listed in at least one of the top 5 high-volume exchanges?
This seeks to know the fifth-level reliability as well as the first-level viability of the crypto project.
Evaluative Question 2: Is Total Liquidity Supply upto 30% of Undiluted Market Capitalization?
This seeks to establish the trading liquidity, hence, the second-level viability of the crypto project.
Evaluative Question 3: Is the 24-hour trading volume upto one million USD?
This seeks to establish the trading liquidity, hence, the third-level viability of the crypto project.
Item 4: Application Protocol
Evaluative Question 1: Is the Whitepaper available and well-documented?
This seeks to ascertain the third-level transparency and second-level reliability of the crypto project.
Evaluative Question 2: Is it Open-Source code?
This seeks to establish fourth-level transparency and third-level reliability of the crypto project.
• Evaluative Question 3: Is the Project audited by a reputable crypto auditor?
This seeks to establish fourth-level reliability and first-level durability of the crypto project.
Item 5: Project Team
• Evaluative Question 1: Is the Project Team known?
This seeks to know the first-level transparency of the project.
• Evaluative Question 2: Is the Project Organization registered with a government regulatory body?
This seeks to establish first-level reliability.
• Evaluative Question 3: Has ownership of the Project been renounced?
This seeks to establish the second-level transparency of the project.
Mnemonic:
The 5 Items of SOC Scorecard can be remembered by the mnemonic, CUMAP:
C= Coin Supply
U = Use Cases
M = Market Value
A = Application
P = Project Team
