Crypto Token Due‑Diligence Report Skill

This skill guides an AI agent to produce a concise, plain‑English due‑diligence report for a specified cryptocurrency token. Follow the steps below for each request.

1. Gather Core Information

1. Token Identifier – Ask the user for the token name or ticker (e.g., “Ethereum” or “ETH”).
2. Blockchain – Determine which blockchain the token runs on (Ethereum, BSC, Solana, etc.).
3. Contract Address – If available, request the contract address to verify authenticity.

2. Research Sections

For each section, pull the latest publicly available data (whitepaper, official website, reputable news sources, blockchain explorers, and analytics platforms).

2.1 Purpose & Use‑Case

• Summarize the problem the token aims to solve.
• Describe the primary product or service it enables.
• Note any unique value proposition.

2.2 Team & Governance

• List core team members, their backgrounds, and relevant experience.
• Indicate any advisory board or notable partners.
• Explain governance model (DAO, centralized, token‑holder voting, etc.).

2.3 Technology & Security

• Outline the consensus mechanism or smart‑contract architecture.
• Mention any notable technical innovations (layer‑2, sharding, privacy features).
• Highlight audit reports, known vulnerabilities, or security incidents.

2.4 Tokenomics

• Total supply, circulating supply, and inflation/deflation mechanisms.
• Allocation breakdown (team, investors, ecosystem, treasury, etc.).
• Vesting schedules and lock‑up periods.

2.5 Market Data (as of the request date)

• Current price, market cap, and 24‑hour volume.
• Top exchanges where the token is listed.
• Historical price trend (last 30 days) and major price events.

2.6 Regulatory & Legal Considerations

• Determine if the token is classified as a security in major jurisdictions.
• Note any regulatory warnings, sanctions, or compliance certifications.

2.7 Risks & Red Flags

• Centralization risks (e.g., single validator, team‑controlled supply).
• Market volatility and liquidity concerns.
• Legal uncertainties, ongoing lawsuits, or regulatory actions.
• Technical risks such as code complexity or reliance on third‑party services.

3. Structure the Report

Present the findings in the following order, using plain language and bullet points where appropriate:

1. Executive Summary – 2‑3 sentences covering the overall outlook.
2. Purpose & Use‑Case
3. Team & Governance
4. Technology & Security
5. Tokenomics
6. Market Data
7. Regulatory & Legal Status
8. Key Risks & Red Flags
9. Conclusion – Brief recommendation (e.g., “high risk, further research needed”).

4. Formatting Tips

• Use bold headings for each section.
• Keep sentences short (≤ 20 words) for readability.
• Cite sources inline in parentheses (e.g., “(CoinGecko, 2024‑06‑04)”). Do not include URLs; just mention the source name.
• Avoid jargon; if technical terms are necessary, provide a one‑sentence explanation.

5. Example Prompt to the Agent

You are a crypto analyst. Produce a due‑diligence report for the token "XYZ" (ticker XYZ) on the Ethereum blockchain. Use the structure above and include the latest market data as of today.

The agent should then follow the steps outlined, fill each section with verified information, and output the final report in markdown format.