Know Your Data
Know your data.
We believe in a fundamental data-driven future for investing in digital assets. However, the data landscape for investors evaluating crypto fundamentals is still evolving. Analyzing a broad universe of crypto projects requires considerable time and effort spent understanding and reconciling different vendors and sources. Each source has its own approach to gathering, calculating, and presenting data, which means the metrics you rely on can vary significantly depending on where you look.
This inconsistency makes it essential to scrutinize the methodologies behind the numbers. In the charts below, we highlight a few cases of projects and associated metrics sourced from various data providers. Clearly, the reported figures for the ‘same’ metric vary widely. It’s not as simple as one source being ‘right’ and the other ‘wrong’ - different values can have validity, but understanding the methodology is key, in order to enable a fair comparison.
Being able to critically assess and interpret data is essential for investing in crypto. A better understanding of the strengths, limitations, and methodologies of data sources is key to making informed decisions in a complex and evolving market.