In the rapidly changing Crypto Assets market, many investors tend to rely on intuition or trends for trading. However, experienced investors prioritize on-chain data, as the Token structure directly affects investment risk. With the right tools, we can gain deep insights into the essence of projects.

This article will introduce a simple and effective method to help you quickly assess the health of a crypto assets project Token. This method only requires three steps to give you a preliminary judgment on the project.

1. Evaluate the concentration of Token distribution
First, observe the distribution of the Token. If a few large holders occupy the vast majority of the Token supply, it indicates that the Token is highly concentrated and susceptible to manipulation. In contrast, a healthy project should present a relatively decentralized Token distribution.

2. Analyze the relationships between large holders
Next, follow whether there are frequent fund transfers between major holders. If these seemingly independent addresses are actually closely linked, it may indicate that the project has issues of 'pseudo-decentralization'.

3. Check liquidity allocation
Finally, check whether the project locks a portion of its tokens in staking contracts or liquidity pools. A robust project typically has clearly marked liquidity allocation. If such a reasonable distribution cannot be found, it may suggest a lack of transparency in the project or potential risks.

By following these three steps, investors can form an initial judgment on the basic health of a project in a short period of time. It is important to remember that while prices may be manipulated and project narratives may be packaged, on-chain data does not lie. Mastering this analytical method adds a layer of protection to one's investment decisions.

In crypto assets investment, rational analysis is far more important than blindly following the trend. By learning and applying on-chain analysis techniques, investors can better understand the essence of the projects and make more informed investment decisions. This not only helps to avoid potential risks but also allows them to gain a competitive edge in a fiercely competitive market.