> For the complete documentation index, see [llms.txt](https://omen-protocol.gitbook.io/omen-protocol-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://omen-protocol.gitbook.io/omen-protocol-docs/guides/market-research.md). # Market Research Learn how to research crypto assets using market data, liquidity information, and token metrics available through OMEN Utility. ### Overview Researching a crypto asset involves more than looking at its current price. Market capitalization, liquidity, trading activity, token supply, and contract information can all provide useful context when evaluating an asset. OMEN Utility brings market information and token discovery tools together to help users investigate digital assets. This guide outlines a practical approach to researching a token before making a trading decision. ### 1. Find the Asset Start by opening OMEN Utility and locating the market or token discovery interface. Search for the asset you want to investigate. Before proceeding, verify its token name, ticker, and contract address where available. Token names and tickers are not unique. Multiple tokens can use similar names, so checking the contract address is important, particularly when researching unfamiliar assets. ### 2. Review Market Data Once you have located an asset, examine the available market information. **Price** shows the quoted value of a token at a particular time. Price movements can help you understand recent market behavior, but a low token price does not necessarily mean an asset is undervalued. **Market capitalization** estimates the market value of circulating tokens based on the token price and circulating supply. **Fully diluted valuation (FDV)** estimates the value of the entire token supply at the current price, based on the supply definition used by the data provider. FDV and market capitalization measure different things and should not be treated as interchangeable. **Trading volume** indicates the amount traded during a specified period. Higher volume can indicate greater trading activity, but volume alone does not establish that a market is healthy or that reported activity is reliable. Not every asset will have complete or consistent data available. ### 3. Examine Liquidity Liquidity affects how easily a token can be bought or sold without significantly changing its price. When liquidity pool information is available, review the reported pool liquidity and recent trading activity. Low liquidity can lead to greater price impact, wider execution differences, and difficulty selling a position at the expected price. Pool liquidity figures are estimates and may change quickly. They do not guarantee that the entire displayed amount is available to you at a particular price. ### 4. Check Token Information Before interacting with a token, verify its contract address and network. Where information is available, investigate the token's supply, distribution, and relevant contract characteristics. Check whether the asset has unusual transfer restrictions, concentrated ownership, or other risks that could affect trading. The availability of contract information does not mean that a token has been audited or independently verified. A token appearing in OMEN Utility should not automatically be interpreted as an endorsement. ### 5. Understand Market Activity Review price movements, trading volume, and liquidity together rather than relying on a single metric. For example, a sharp price increase accompanied by limited liquidity may be more difficult to sustain than the price chart alone suggests. Similarly, high reported volume does not guarantee that a token can be sold easily. Consider the time period represented by each metric and whether the available data is sufficiently recent for your research. ### 6. Use AI-Assisted Analysis If AI Analyst is available to your account, you can use it to help interpret token information and investigate specific questions. Useful questions may include: * What are the main risks associated with this token? * How does its liquidity compare with its reported market capitalization? * What might explain the recent change in trading activity? * Which important details are still missing from the available data? AI-generated responses may contain errors or rely on incomplete information. Verify important claims against reliable data sources and on-chain information wherever possible. ### 7. Review Before Trading Before deciding whether to trade, consider the following: * Have you verified the correct token and contract address? * Do you understand the available market capitalization and supply data? * Is liquidity sufficient for the intended trade size? * Are trading activity and price movements consistent with the information available? * Have you considered contract, concentration, and market risks? * Are you comfortable with the possibility of losing the amount invested? Completing these checks cannot eliminate risk, but it can help you make a more informed decision. ### Data Limitations Market data may be delayed, incomplete, or subject to provider-specific definitions. Metrics can differ between providers, and newly created tokens may have limited historical information. OMEN Utility provides research tools, not guarantees of token legitimacy, market performance, or trading outcomes. ### Important Notice This guide is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research and assess the risks before trading digital assets. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. 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