Start by investigating whether the token had an Initial Coin Offering (ICO) or a similar fundraising event. If so, find out the ICO price to establish a baseline for the coin’s value. Additionally, examine the token’s total supply and the amount circulating at launch, as these factors can significantly influence its price behavior in the market.
Next, determine the focus of the token’s technology. Is it aimed at a popular sector like AI, blockchain ecosystems, gaming, or Layer 1/Layer 2 solutions? Understanding its niche can give insight into its potential for growth. For example, $1000CAT is a memecoin, which comes with its own set of market dynamics. Once you have this information, wait for the token’s launch price and compare it to the ICO price. Pay close attention to the difference between these prices, as it can reveal how much early investors or token holders may look to sell immediately after launch.
Another key point to analyze is the coin’s market capitalization at the time of launch. If the market cap is excessively high, it could signal an inflated price that will likely face downward pressure once early-stage investors start liquidating their positions. Ideally, avoid jumping into coins with a market cap over $500 million at launch, as these often face selling pressure from presale participants. Make sure to also verify if the token is being listed on other exchanges or if there has been any airdrop distribution, which could influence its price action.
After gathering all this information, it's wise to refrain from buying immediately following the launch. Instead, give the coin some time to establish a stable price. Observe the price movement over the first few hours to see if it forms a solid base. Once the dust settles and you can analyze the market sentiment, then consider making a more informed decision. Patience and caution are key, and by following these steps, you can make smarter decisions and minimize risks in volatile markets.
