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CRCI Project Overview

The CRCI initiative is an innovative fundamental analysis research methodology built from the ground up.

Our Approach

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Problem

Because of a general lack of resources on how to research DeFi, and the absence of oversight and regulation in the DeFi ecosystem, retail investors are particularly susceptible. As a result, bad actors and product failures are not held to any standards or operational accountability.

Using a first-principles approach to fundamental analysis, an intelligently weighted point system is applied to important metrics to generate a confidence score (CRCI Score) measuring transparency, user protection and accountability

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Solution

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TECHNICAL ANALYSIS

(Trader)

Pros:

  • Studies historical on-chain data

  • Post mortem insights

  • Verification of declared intentions

Cons:

  • Lacks context in isolation

  • Impact heavily reliant on data volume

  • Ignores fundamental and sentiment analysis

  • Struggles with new or illiquid assets

  • Relies exclusively on pattern analysis

  • Needs constant monitoring

  • Interpretations of objective data can vary

FUNDAMENTAL ANALYSIS

(Investor)​

Pros:

  • First line of research (DYOR)

  • Direct study of the source material

  • Factors operational insights

  • Long-term investment consideration

  • User auditable field of analysis

  • Explores intrinsic asset value

  • Offers context beyond trends

  • Informs decisions, reduces noise

  • Includes balanced technical and sentiment considerations

Cons:

  • Wide variety of influential factors

  • Fails at short term price movements

  • Time-consuming and complex process

  • Interpretations of objective data can vary

​SENTIMENT ANALYSIS

 (Speculator)

Pros:

  • Real time social insights

  • Helps anticipate trend shifts

  • Reflects immediate market reactions

Cons:

  • Triggers FOMO

  • Emotion-driven, lacks objectivity

  • Prone to groupthink and herding

  • Unreliable for market predictions

  • Prone to deception and fake news

  • Bad actors thrive in this domain

  • Lacks context in isolation

  • Generally ignores fundamental and technical aspects

  • Difficult to quantify and standardize

The CRCI covers 28 metrics across 8 categories

Proposal

1. Social Engagement

Quality of content. How active and engaged the project is across mainstream social channels. Communication, presence, and community awareness. Website provides all expected content.

2. Communication of Intent

Assessment of the whitepapers and other forms of presentation in terms of communication of the specific problems they are addressing and their path to intended solutions. Measurement of the impression of depth among competitive projects.

3. Tokenomics

Clarity of the tokenomic model with attention to token allocations, including vesting schedules. Consideration of the token functions. Also an overall assessment of perceived fairness and “rug-ability” exposure.

4. Team / Developers

Quality of content. How active and engaged the project is across mainstream social channels. Communication, presence, and community awareness. Website provides all expected content.

Implementation

5. Audits / Track Record

Assessment of public third-party code audits, considering audit cadence congruent with updated products and services. Consideration of the performance / track record of the project. Survey of the public GitHub repo.

6. User Protection

User advocacy. Interactions on the platform are clear. Documentation, guides, education, support. The degree to which the user is protected against unintended actions.

7. Industry Accolades

Reputation. Notable sources of recognition of actions, initiatives, contributions, awards etc. These may come from the crypto community, the broader crypto industry, or credible external sources.

8. Cumulative Demerits

Project failures of any kind. Any activity, behavior, misrepresentation, lack of transparency or clarity that may either intentionally or incidentally misdirect or undermine the project’s participants, community, or ecosystem.

Making Sense of DeFi Tokenomics

The standardization of tokenomic models into a comparable format is achieved through the CRCI review process.

By analyzing data from from a substantial number of tokenomic models, the CRCI is able to identify industry trends and detect patterns that could suggest potential exposure to liquidation events by the project team or early investors.

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How We Standardize Tokenomics

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Extensive and Concise
CRCI Review Process Documentation

  • Can DeFi projects influence their CRCI Score?
    While DeFi projects cannot directly influence their CRCI Score, engaging with CRCI for a review provides an opportunity to receive actionable feedback. Projects can improve their practices based on this feedback, potentially affecting future evaluations.
  • How does CRCI evaluate DeFi projects?
    CRCI uses a structured methodology to review publicly available information about DeFi projects, assessing them based on our first-principles approach that covers over 25 key metrics in 8 categories. This review produces the CRCI Score that reflects these values.
  • Is the CRCI Score a guarantee of project success or safety?
    No, the CRCI Score is not a guarantee of success or safety. Projects can fail for a variety of reasons regardless of intent. Our reviews are also not a measure of market viability or adoption potential. Success and failure are not events, they are a process. CRCI is a tool to aid in the decision-making process, providing insights into a project's commitment to key values. Investors should always conduct their own due diligence.
  • What is the CRCI Pledge of Excellence?
    The CRCI Pledge of Excellence is a commitment by DeFi projects to uphold the highest standards of transparency, user protection, and accountability, as evaluated by CRCI and by actively committing to ongoing CRCI progress Reviews. Projects that meet these standards are awarded the CRCI Badge. Learn more here CRCI - Pledge of Excellence
  • Can projects dispute their CRCI Score?
    As part of the actionable feedback we offer projects we review, we're committed to allowing our DeFi projects to have a voice in the CRCI Review process for that applies to all projects. It's worth noting that in a fast moving industry, all reviews expressed by the CRCI project have been based on the information available to CRCI at the time any reviews were prepared. All information is subject to possible correction, and any new or changed information may cause these reviews to change. The CRCI values and welcomes feedback, and the specific processes for dispute resolution and community engagement are still under development. Similar to code audits, projects are encouraged to take corrective action from our reviews wherever possible. After all we want to elevate our best builders! All of our reviews are based on publicly available content from the projects. The CRCI approach is summarized on this page https://www.crci.review/overview. We feel being objective, relevant, fair and critical at the same time is a challenge worth pursuing.
  • How does the CRCI benefit DeFi projects?
    Enhance your project's credibility, gain actionable insights for improvement, and showcase your commitment to excellence. CRCI can help distinguish your project from competitors who may be under-prepared or purely opportunistic. Similar to how code audits can catch oversights, CRCI Reviews can validate fundamentals you may not realize could be impacting your brands trust or credibility. The message the consumer needs to understand is your insistence on striving for greatness. The CRCI Review process authenticates projects with objective operational criteria, not just marketing claims, and is based exclusively on your published content as a measure of community verification. Committing to the CRCI Pledge of Excellence program is a powerful opportunity for you to use to demonstrate your commitment to the consumer.
  • How often are CRCI Scores updated?
    CRCI Scores are updated based on the project's update schedule with CRCI. Significant changes in a project's public information may prompt a score review. However, all projects in the Pledge of Excellence program are still available to updated "Cumulative Demerits" which can be CRCI Score adjustments based on project failures of any kind at any time.
  • How can a DeFi project request a CRCI Review?
    Projects interested in a CRCI Review can reach out directly through the CRCI website contact form.
  • What is CRCI?
    CRCI (Chromahex Research and Confidence Insights Corp.) is a platform dedicated to providing our first-principles approach to fundamental analysis of decentralized finance (DeFi) projects, focusing on transparency, user protection, and accountability.
  • Does CRCI review all DeFi projects?
    CRCI aims to review a wide range of DeFi projects, focusing on those that are actively seeking the opportunity to demonstrate their commitment to external review. However, the capacity to review all projects may be limited by resources.
  • How can investors use CRCI Scores?
    Investors can use CRCI Scores as part of their research process to save a tremendous amount of time and identify projects that align with their values regarding transparency, user protection, and accountability. It's a starting point for deeper due diligence. It's important to note that CRCI Scores are not risk assessments or investment advice.

Sign up to learn more about elevating your project with CRCI.

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