You head to the Copper website, you see a number of LBPs available to participate in. Now it’s time to ask yourself; what LBPs represent an opportunity for me to join and what LBPs should I avoid?

We’ve put together a 6 tip guide for you to know next time you’re considering a project on Copper.

Please note that participating in a LBP through Copper is a high-risk endeavor and that the value of the tokens that you’ve received in exchange for contributing to such an LBP might go to 0. Copper is not liable for any losses incurred by using our platform.

First, it’s vital to know how many tokens are part of the LBP. This information can be found on the LBP page. Depending on what the LBP host has chosen, they may or may not choose to supply all of the tokens in circulation.

While knowing how many tokens are in the LBP is important, depending on the project there may already be other tokens already in the market. This is very important to know because users can buy and sell into Copper LBPs. You will want to know how many tokens that are already in the hands of other holders that can potentially be sold back into the LBP. As an example for the PDT LBP their pool was for 37.5m tokens, but the total number of tokens minted is 162.5m.

This information can be found on the Etherscan website from the Copper UI here:

On some occasions, an LBP on Copper may represent a later round for a project. This means that early backers may have already supported the project earlier. On many occasions the price the early backers received the token at could be lower than the price that the Copper LBP is set at.

Ask projects whether there has been previous investment into the project, what price these investors got, and are there any ‘timelocks’ on their investment. If the unlock is before the LBP, tread carefully, if unlocks occur over multi-year periods it can indicate the early backers are confident in the long term outlook of the project.

Always find out who’s behind the project, what their past experience is and get a feel for what their reputation is.

If a project has team members or leaders that have been involved in numerous unsuccessful businesses or crypto projects, it could be a warning sign to steer clear. Alternatively, if a project leader and their team members appear to be hard-working, dedicated, passionate and experienced, these attributes are likely to help a project succeed in the long term.

We recommend getting to know team members directly, asking them questions you have directly and getting a feel for who they are and what they represent. If a project’s leaders and team members are responsive to your questions this can mean they are open & transparent about their plans and goals for the future, which is a good sign.

Ensuring the project has post-liquidity plans is crucial to ensure there is a liquid market following the conclusion of the LBP.

Find out where the project will be listing the token post LBP(e.g. Uniswap, Sushi, Balancer or a centralized exchange such as FTX or Binance). If the project is being listed on an AMM such as Uniswap, find out how much liquidity will be provided by the project (if any) to determine if you will face any slippage issues.

Ensuring the product is positioned to succeed in the market is our final tip for the day, but one of the most important.

Ask the project and yourself these questions.

How do they plan to generate revenue?

How is it unique compared to other projects?

What are their growth plans for the future?

Are there any competitors and what is their likelihood of succeeding?

Does the token drive any utility?

These are just some of the questions we recommend asking projects to ensure you have a full understanding of what their plans are for the short, medium and long term.