How to Perform Due Diligence on a Crypto Project in Under 60 Minutes

Introduction: Why Fast Due Diligence Matters

Not every investment warrants a full deep-dive, especially in fast-moving crypto markets. Traders, early adopters, and opportunistic investors often need to make decisions quickly. A 60-minute due diligence framework enables you to identify red flags, evaluate tokenomics, and assess team credibility without sacrificing critical insights.

This article complements the more comprehensive guide,
The Ultimate Crypto Due Diligence Framework
and links naturally to other cluster articles like
On-Chain Due Diligence: Wallet Analysis
and
Red Flags That Kill Crypto Investments.

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Step 1: Initial Context and Goal Setting

Before diving in, define:

• Objective: Short-term trade or long-term hold?
• Position Size: How large relative to your portfolio?
• Focus Areas: Team, tokenomics, on-chain metrics, or marketing hype?

A clear context ensures you spend your 60 minutes efficiently, focusing only on the most impactful data.

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Step 2: Quick Value Proposition Scan

In 5–10 minutes:

• Identify the problem the project claims to solve
• Determine if blockchain is essential
• Check if the solution is significantly better than competitors

Tools:

• Project website and whitepaper
• Pitch decks and official documentation
• Community forums (Discord, Telegram)

If you can’t summarize the value proposition in one clear sentence, mark the project for deeper review later.

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Step 3: Tokenomics Snapshot

Spend 10–15 minutes reviewing:

• Supply metrics: Total vs circulating supply
• Emission schedule: Inflation rate, vesting cliffs
• Allocation: Team, advisors, investors, community

Resources:

• Tokenomics section of the whitepaper
• Blockchain explorers (Etherscan, BSCScan, Solscan)
• Aggregators like CoinGecko and CoinMarketCap

Flag any misalignments or concentrated holdings for further investigation.

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Step 4: Rapid Team and Governance Review

Allocate 10 minutes to assess:

• Founders’ track record (LinkedIn, GitHub, prior projects)
• Public visibility and accountability
• Governance structure (who makes decisions, voting power distribution)

Anonymous teams increase risk but aren’t always disqualifying. Transparency, even partial, improves trust.

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Step 5: Quick On-Chain Analysis

10–15 minutes on-chain:

• Examine top wallet distribution
• Track recent large transfers
• Evaluate liquidity depth
• Monitor active addresses vs total holders

Tools:

• On-chain analytics dashboards (Nansen, Dune, Solscan)
• Blockchain explorers for wallet-specific queries
• Automated alerts for whale movements

This reveals real investor behavior beyond hype.

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Step 6: Market and Competitor Scan

5–10 minutes:

• Identify 2–3 main competitors
• Check active user base or TVL (Total Value Locked)
• Assess differentiators or defensibility

A project can appear promising but fail if competitors dominate the space.

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Step 7: Red Flags and Quick Risk Check

5–10 minutes:

Look for:

• Unrealistic ROI or APY claims
• Constant roadmap revisions
• Heavy insider selling
• Overhyped marketing without substance
• Smart contract audit absence

Refer to
Red Flags That Kill Crypto Investments
for a deeper checklist.

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Step 8: Synthesize and Decide

Last 5 minutes:

• List top 3 pros and cons
• Decide whether the risk-reward ratio meets your threshold
• Document your findings

Even this compressed review benefits from documentation—it can prevent repeated mistakes.

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Tools and Templates

• Quick spreadsheet: position size, circulating supply, team credibility, red flags
• Browser bookmarks: key explorers, analytics dashboards
• Alerts: Telegram, Twitter, and Whale tracking for price-sensitive movements

For a printable, structured version of this process, see
The Crypto Due Diligence Checklist.

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Conclusion

Speed doesn’t have to mean sloppy. A structured 60-minute review ensures you avoid obvious risks, spot misaligned tokenomics, and make informed decisions quickly. Use this as a practical complement to deeper due diligence frameworks.

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