Due diligence checklist

Miles Deutscher published a Due Diligence Checklist he is always using before he is buying a coin/token.

My ultimate due diligence checklist I complete BEFORE BUYING any coin.

If you can answer each question, you'll already be ahead of 99% of crypto investors in terms of DD – and you'll significantly increase your strike rate.

(bookmark this post, and answer each question before…

— Miles Deutscher (@milesdeutscher) January 7, 2025

So, let’s use this checklist and try to answer how $RITE “scores” on all elements.

• What’s the USP?
• Is there product market fit?
• Is the narrative compelling and in line with the market?
• Do they have a strong moat/competitive advantage?
• What’s their roadmap/end goal?
• How far away are they from their end goal?
• Are there other comparable projects “anchoring” the price? (upside gauge)
• Are there trusted influencers or thought leaders backing the project? (not just paid shills)?
• Does it have a strong community?
• Are there any obvious red flags? (bundled supply, rug risk, honeypot etc.)
• Have their smart contracts been audited? Are the audits publicly available?
• Are they on CEXs?
• Do they fulfill enough criteria to get on CEXs? (volume, market cap, community)?

The overall mission is to use the latest blockchain and Web3 technologies to revolutionize, democratize, and decentralize the Hollywood-driven broadcasting and streaming industry by giving more power to fans and creators.

There are 3 (crypto) narratives with each USPs:

A) [Media and Watch-to-Earn narrative] The Web3 streaming platform RITESTREAM+ where users can watch films and TV shows for free sponsored by advertising where 40% of the ad income is shared among (ad) viewers via the unique Watch-to-Earn and Watch-to-Win concept. These rewards are paid out (i.e. airdropped each month) in $RITE tokens that are purchased on the open market before being distributed (with as result… continuously $RITE token buy pressure and expansion of new $RITE holders).

B) [RWA (Media IP) narrative] The Web3 Film & TV show Crowdfunding platform where producers “connect” with fans to fund, create, distribute and monetize unique media content by using the latest blockchain and Web3 technologies. Think about NFTs (or smart contracts) with partial ownership and revenue-sharing. The $RITE token plays a crucial role as $RITE staking is allowed to get more, exclusive, and/or guaranteed allocations to the crowdfunding.

C) [Media and Token Launchpad narrative] The CryptoKnights TV Show with unique token Launchpad. This is an investment reality TV show (like Shark Tank) where game-changing new Web3 and Crypto project Founders are pitching their ideas in front of a panel of Knights (Business Angels). The Knight comment on the pitches and battle against each other to get the best investment deal if they are interest to invest in these projects and their project tokens. The show will be aired by main streaming platforms to hundreds of millions of household. It’s a competition, but the CK Show is also educational with as purpose to inform people about the “hottest” Web3 developments and projects. And very interesting, viewers can invest themselves in these projects via the CK Launchpad, and can acquire tokens at early stage often at prices that otherwise are only achievable for insiders and venture capitalists. Again, the $RITE token plays the same crucial role as $RITE staking is required for more, guaranteed, or exclusive project token sales allocations.

At the moment, you can’t conclude that the Media narrative is “hot” as not many Media companies are already transferring from Web2 to Web3. But this will probably change if this transfer will start…

However, the RWA narrative is currently “very hot”. You know, in the end, every “real-world” asset will be tokenized.

Especially, if the RWA generates income and is “suitable” for fractional ownership and (partly) revenue-sharing. And Media IP (content distribution rights) is the “perfect” asset category to tokenize as blockchain also allows for better transparency of individual transactions (to a level where each content view should lead to a payment to the owner/distributor of the right).

Sister company allrites already has its own Web2 marketplace for buying/selling content via an unique CaaS (Content as as Service) concept used by thousands of content providers, distributors, and streaming platforms.

So, the RITE team has all the means and know-how to set up a Web3 crowdfunding and marketplace, not only for new content but also for existing media content.

Just think about it, for Music rights, there are some Web3 initiatives where the song (or album) rights have been tokenized and token holders will get periodically rewards based on actual revenues (song rights income)… This same concept will come for Film/TV-show and other Media content as it’s the perfect way for producers to monetize their “work” and get paid out “instantly” instead of waiting for years… money they can use to fund their next “creation”.

And who doesn’t want to own a piece of ownership in the next blockbuster?

This market is huge and can become “very hot” in the coming years.

And the CryptoKnights Show aired to hundreds of millions of households… is “hot” by definition once aired on either NetFlix, Amazon Prime, HBO Max, and/or other streaming platforms.

And what to think about all these new game-changing featured projects in the CK Show?

You bet some of these will become “very hot” as the Projects were selected based on “hotness” with projects in hot narratives such as AI, DePIN, DeFi, new blockchains (L1), etc.

Besides the promotion of the show by the streaming platforms to their hundreds of millions of households, the CK Show will be promoted by the Knights, Hosts, Projects, KOLs, and partners with millions of followers.

So, although there are some paid KOLs, the majority of promotions will come from real influencers.

So, you bet that the marketing exposure around the CK show (and Launchpad) will be huge.

Click on this link Roadmap to see the full status. In short… the CK show season 1 will be aired in Q1 2025. The streaming platform is already live as (since October 2024) and will get lots of improvements in Q1 2025 with respect to UI/UX and new features, including more content, via the content flywheel. After these improvements and achieving the aimed viewer targets, the first Film Crowdfunding sale will take place (expected end Q1 2025 or Q2 2025).

The roadmap end goal is the mission… the team won’t stop before these above described platforms and the CK Show will attract millions of users (Streaming platform, Crowdfunding Platform, and CK Launchpad platform). The sub-mission is to transfer the next 1 billion current Web2 users into Web3 users.

And this won’t happen overnight, but will take time… but for all narratives and products… these can be sustainable and profitable very soon as the RITE team doesn’t have to invest millions of dollars into new platforms and or a new blockchain. The team will just pick what’s available as explained here… the Web3 Technology Strategy.

For all narratives, RITE is in the unique position to become the first-mover who will revolutionize and shake up the world as the “market” is wide open without any or just early-stage competition.

So, there are no comparable or “anchoring the price” projects. At the moment, there are no other Web3 streaming platforms that rewards users for watching (ads). And there is no other Web3 Film/TV show crowdfunding platform.

Only for the CryptoKnights Show there is one similar crypto project, Hello Labs, that has the Killer Whales show… but that show isn’t aired free-to-watch on main streaming platforms (only on paid platforms), and viewers can’t invest with the Knights (at very interesting conditions). But surprisingly, $HELLO has a higher price and Marketcap… So, can be seen as the first “anchor price” and MC.

Well, just look at the CryptoKnights Cast (Knights and Hosts) with well-known names such as Brock Pierce to just name one.

You can see the social media stats inside the Social Media Presence paragraph on the Marketing page.

There is room for improvement… but be aware that the marketing exposure around the first CK Show still has to start… Think about what will happen if hundreds of millions of “eyeballs” will watch the show on a prime streaming platform? And if all “partners” start promoting the CK show (Streaming platforms, Knights, Hosts, KOLs, Projects, and VC and Launching Partners)?

And of course, we have RITEFANS as community. Not many projects have their own Fans website and associated social media channels.

The $RITE token “is” multi-chain on BNB and Base chain which are “proven” chains. The $RITE Bridge uses industry-standard security protocols and practices to ensure safe and reliable transactions. The adapter contract has been full audited by QuillAudits (click to open audit report).

For other audited processes, go to this URL… https://github.com/Quillhash/QuillAudit_Reports and enter ritestream in the search query to find all reports audited by Quill.

For $RITE staking, the Decubate smart contracts are used which are/were audited by Hacken and Certik.

For DEX liquidity, Pancakeswap and Aerodrome v3 Liquidity Pools are “used”. Both audited and DEX market leaders (PCS on BNB Chain, and Aerodrome on Base Chain).

$RITE is listed on Gateio and MEXC. Future potential new CEX listings are expected. Read this paragraph to find out why… When next CEX listing?

• What is the token’s primary utility in the ecosystem? Is it essential for the protocol’s function?
• What’s the market cap to FDV ratio?
• Are the tokenomics conducive to value accrual?
• Are they generating fees/real revenue?
• Is it inflationary or deflationary?
• What’s the vesting schedule?
• Where are the unlocks going?
• Is there a long term plan to alter the tokenomics?

In this paragraph the main Tokenomics are explained. As there are 3 “narratives” each has its own ecosystem and “utility” role for the $RITE token.

For the streaming platform, the Watch-to-Earn/Win rewards are automatically “airdropped” to the platform users based on their (ad view) activities. Of course, the earned $RITE tokens may be sold on the open market… but they may also be used for payments and purchases either for inside the streaming platform (Boosters, Premium (Ad-free) Content, and PopCorn Collective subscriptions), or for outside the streaming platform (Crowdfunding or CK Launchpad platform).

For the two Launchpads (Crowdfunding and CK Pad), the $RITE token is a “necessity” to get higher, exclusive, and/or discounted allocations.

On ritescan.io, you can find the real-time MarketCap, FDV, and ratio between these two.

At the moment, January 13, 2025, the numbers are:

Yes, for all 3 narratives… increased platform usage will lead to more $RITE token usages, transactions, token velocity, more token staking, and more token burns… resulting in upward price pressure.

All described on the tokenomics pages and especially in these paragraphs…

Tokenomics

• Token Utilities
• Staking benefits, how to stake, and staking stats
• Burning mechanism (Scarcity)

This is explained in this paragraph… Revenues generating capacity and revenue-sharing.

In short…

The streaming platform is monetized via in-stream video commercials… the more people use the platform and watch content, the more ad views they will see, the higher the revenues (besides other income from subscriptions and Boosters).

The Crowdfunding platform is monetized via platform fees (a percentage of fund raising). Hence, the more movies/shows are crowdfunded, the higher the revenues.

CryptoKnights is monetized by streaming platforms who pay for the airing/distribution rights, but most and for all via CK Launchpad token sales. Of course, the more CK shows (episodes) and featured Projects… the more CK Pad token sales… Also, be aware that as the CK Launchpad comes with marketing exposure to potentially hundreds of millions of “eyeballs”… the more exposure… the higher the stakes, i.e. the fundraising amounts… the higher the revenues for RITE (and the more $RITE is staked).

The token is deflationary as there are 2 burning mechanisms

• 5% of all the Platform income will be used for $RITE token burns.
• 0.5% bridge BNB<>Base chain transaction fee is automatically burnt.

The number of burnt tokens can be seen real-time on ritescan.io.

The vesting schedule and current status is described in these 2 paragraphs…

IDO March 2022: Token Sale, Distribution and Vesting

• Token Sale
• Token Distribution and Use of funds
• Token vesting

Token Vesting and Distribution current status

Most of the remaining unlocks are going to the team’s “treasury” and will be used when needed.

Note that out of the 36 monthly unlocks, already 33 unlocks took place. At the end of March, 2025, all tokens will be unvested/unlocked. For more details… read this FAQ…

FAQ: When is the next vesting unlock? And should you be afraid of potential token dumps?

You never know what will happen in the future. There are no announced changes with respect to tokenomics. The team is open for tokenomics improvements, and so far, we like the current tokenomics as $RITE plays an important role in each narrative.

• Is the team doxxed?
• Do they have a solid track record?
• Does the project have reputable advisors with relevant expertise?
• Are there any AMAs or interviews you can listen to, to get a better gauge?
• Have they historically hit their roadmap checkpoints/goals?
• Do they have any reputable partnerships or collaborations with established players in the space?

The names of the RITE Team are publicly available, and you can easily find more information about them via LinkedIn and other social media profiles. Click on the link to find out more about each team member.

The team covers all the needed know-how, experience, and network with respect to content funding, creation, distribution, and monetization.

They have created Emmy-nominated and award-winning reality shows aired to hundreds of millions of viewers. They know what producers, distributors, streaming and broadcasting platforms, and of course, the public want…

This team doesn’t have to start from scratch as they already have all the “connections” with thousands of content producers and distributors, and with all main streaming platforms via their allrites network and unique (Content as a Service) marketplace, and/or earlier TV reality show productions.

In the (original) Whitepaper, you can find a list of advisors (“Advisory Board”).

Or maybe better… look at the CK Cast (Knights and Hosts) for season 1.

• Is price action exhibiting relative strength to the rest of the market?
• Is price at or above a key support level?
• Is it in an uptrend (higher lows and higher highs)?
• Is there a clear HTF indicator/level that could serve as an invalidation point?

In this paragraph, Historical $RITE token price and triggers, I explained that although $RITE is a low-cap token and follows the general ALTs market direction, the price action is primarily based on “news” and excitement around the news.

Hence, using TA and HTF (Higher Time Frames) won’t “help” you to find the best entry…

So, you may conclude that the relative strength is “poor” in comparison to the rest of the market (especially if compared with high-cap top ALTs)… and that the price is not yet in an uptrend… but this can change in a single day as happened last year starting on January 3, 2024 with price appreciation of 20x in a few days.

Hence, read above mentioned paragraph and analyze the mentioned triggers/catalysts that may cause the next spike… and if that happens… you are probably too late to take full benefit.

Also, read the paragraph about Liquidity… $RITE is a small-cap, the liquidity is not bad… but as it’s a small-cap… just a little demand (or supply) may cause a significant price spike.

• Are there significant whale wallets?
• What’s their behavior (accumulation or distribution)?
• What’s the ratio of whale wallets to retail wallets?
• How liquid is the token?
• How many unique wallets interact with the token daily?
• Has the holder base been sustainably growing over time?

On ritescan.io, you can analyze the token distribution.

The “company” still controls a significant percentage of the tokens (48.1% as per January 13, 2025).

The public-controlled tokens (520M) can be divided into:

• Held on CEXs: 91M (Gateio and MEXC)
• Staked: 32M
• Partnerships, Private Sale, and Early Supporters: 64M
• Liquidity Pools: 16M
• Others: 317M

The (remaining) Partnerships (including Private Sale an Early Supporters) are long-term investors who are allowed to sell at at any moment, but who did held the tokens since IDO (March 2022).

Among the other 317M public tokens, there are no “whales” holding 10M+ tokens (in a single wallet).

In general there is not much “whale activity”, and you don’t have to be afraid about token dumps.

Also, be aware that the current token price (at 1 cent) is still below IDO prices (Seed 2 cent, Private Sale 3 cent, and Public 4 cent).

Whales/Retail ratio

Let’s use the above 64M for Partnerships vs Others 317M, and you get a 20% ratio, which is not bad at all.

This question if fully answered here… FAQ: How liquid is $RITE?

On BscScan you can analyze this number by visiting this URL… https://bscscan.com/token/0x0808bf94d57c905f1236212654268ef82e1e594e#tokenAnalytics

The average is about 120 unique wallets per day. This is relatively low, and we expect this to increase in the near future especially if more an more users will use the streaming platform, and when the “huge” marketing exposure around CK show airing will start.

The holder base is relatively very stable and constant.

Again, see prior question… this may change quickly the moment the streaming platform will expand, and when the first CK Launchpad token sales will take place.

Above I tried to answer all these questions to my best knowledge by referencing to the proper sources where many questions were already answered elsewhere on this website.

I like this Duel Diligence Checklist as it “forces” you to look at many aspects and from different viewpoints.

However, many items are based on the “current” status, while for making money by investing in the proper tokens at the right moment… you have to look and make predictions about the future.

We think the future is bright, we trust the RITE Team and think that the $RITE token is highly under-priced (for example, read this paragraph… A model to calculate the fundamental $RITE token price (at $0.55!))… but we are eagerly waiting for the CK Show to be aired on one of the main streaming platforms (think about NetFlix and/or Amazon Prime).

Just the announcement regarding this one main streaming platform may be the catalyst… followed by… all the marketing exposure before and around the CK show as coming from the Knights, Hosts, KOLs, Projects, Partners, and the streaming platform(s)… and eventually… (potentially) hundreds of millions will watch the CK show…

Furthermore, on the streaming platform you can watch about 80 movies/shows… but what will happen if thousands of movies/shows can be watched for free?

I hope I have convinced you about the huge potential in all 3 narratives, the quality and experience of the RITE team, the great tokenomics, and $RITE price potential…

So, use this Due Diligence Checklist to rate the questions yourself and inform you about RITE… but don’t make the mistake to overvalue (current) technical and on-chain stats as these may not look ideal for $RITE at the moment… However, these stats look at the current and past situation, but “ignore” the potential.

Hence, these technical and on-chain stats may change very fast for the better… and you may be too late.

As always, DYOR, no investment advise, and please read or Disclaimer.