However, there are differences between cryptocurrency trading and stock trading. In the stock market, there is basically no stock where more than 80% of the chips are in the hands of a dealer, and every chip they absorb has a cost. In the cryptocurrency world, 90% or even close to 100% of the coins are in the hands of the project owners, and the cost of these coins is almost zero for them.
A new currency, except for a very small amount of coins airdropped to the money collectors in the early stage of listing on the exchange, the rest of the coins are in the hands of the project owner, and there is basically no selling order.
Therefore, the project owner can increase the price of the currency by several times, dozens of times, or even hundreds of times with very little capital.
When the currency becomes popular and a large number of investors enter the market, the project owner will sell the currency without hesitation.
If you don’t sell your coins before the project party ships the goods, then I’m sorry, you are the green leek in the currency circle. . . .
This is why so many local dog coins and coins with little value rose by more than a hundred times and then immediately fell and never rose again.
But the stock market is different. Major shareholders are strictly restricted by the China Securities Regulatory Commission. If they want to sell their shares, they need to announce it in advance. Once a major shareholder announces a large reduction in holdings, all the public and private equity institutions will run away. By the time he sells, he can no longer sell at a high price, and it will affect the stability of the company and his own controlling rights. Therefore, major shareholders cannot sell whenever they want. The dealer needs to go through four stages of absorbing funds, washing the market, raising prices, and shipping to operate a stock. The stage of absorbing funds and washing the market requires a long period of shock, which can be as short as a few months or as long as one or two years. The stages of absorbing funds, washing the market, and raising prices require a lot of funds, and the requirements for dealer funds are relatively high. If the chips absorbed exceed 5%, the exchange will also raise a sign, which is equivalent to telling everyone that I am absorbing funds. There may still be old dealers, public funds, private equity, and large institutions that were deeply trapped in this ticket. Once they start to raise prices, they say that they will raise prices several times or even dozens of times. If you raise 30%, there will be a lot of locked-in chips thrown to you. The dealer carries the sedan chair for others and becomes a receiver. Therefore, not all dealers in the stock market can make money, and they also bear risks!
However, there are differences between cryptocurrency trading and stock trading. In the stock market, there is basically no stock where more than 80% of the chips are in the hands of a dealer, and every chip they absorb has a cost. In the cryptocurrency world, 90% or even close to 100% of the coins are in the hands of the project owners, and the cost of these coins is almost zero for them.
If you understand what is said above, you can understand the following method and underlying logic of screening 100x coins:
1. The circulating market value and total market value should be low. The total market value of the public chain should be less than 50 million, and the dapp protocol should be less than 5 million. It is easy to understand that the circulating market value should be low. If the market value is too high, there will not be enough room for growth, so the lower the better. Why must the total market value be low? That is because the tokens will be released slowly in the next 1-2 years. If the total market value is too high, it means that the project party (dealer) does not need to pull the price, and can get rich by directly shipping. In other words, even if it drops 10 times, there will still be high prices and profits.
2. The ceiling of the track should be high. At least the valuation in the big bull market should reach more than 1 billion US dollars. If it is a meme coin, you can refer to dog coin, if it is a public chain, you can refer to ETH SOL MATIC, if it is a dapp or other protocol, you can refer to uni aave LDO, etc.
3. New narratives. Don’t participate in tracks that are too unpopular. It is best to solve practical problems. New narratives must be long-term value discovery, not short-term cyclical hype. For example, the current AI GPU computing power narrative, a safer, faster and more decentralized public chain, and infrastructure across several tracks such as the Metaverse Chain Games AR.
4. The 100-fold black horse coin must be in a place where no one cares. Because the coins known by the whole network are basically opened high (ICP) or normal valuation (ARB), do you think their unit price can increase by 100 times? When the market opens, the total market value is tens of billions or hundreds of billions. Let alone a 100-fold increase, even if it increases by 10 times, it will catch up with ETH and BTC.
5. The liquidity of the early 100x coins is basically very poor, and they are generally on the chain or in small exchanges. Therefore, when many novices see others recommending early coins, they do not study the value. They keep saying that they don’t want to go to small exchanges, they are too much like local dogs, and it is too troublesome to buy. There is no app that does not participate. These are all superficial phenomena, and they do not see the essence of value. When I bought Magic in 2021, it was very troublesome to cross the chain. Later, it rose 10 times in a month. When I bought PPI in February 2023, I also needed a double wallet to cross the chain. I tried many exchanges and they did not support it. Later, Gate supported Espace to withdraw coins. Later, the threshold of BRC20 tokens was also very high. It was very troublesome to have both points and OTC. In short, high thresholds are the only way to stop leeks. Binance has no threshold, but it is difficult to make money on it. All shipments are made after going online. Refer to the recent trend of RDNT GNS PEPE FLOKI.
6. The best time to launch a token is at the end of a bull market or the beginning of a bear market. When conducting research or buying, the best time to launch and wash is 6-12 months, and the circulation rate should be greater than 50%. KAS was launched in May 22, and it was deeply washed for about 6 months. The highest increase this year is more than 100 times. PPI was launched in May 22, and it started to explode after 9 months of deep washing. The current circulation rate is about 60%, and the highest increase this year is about 50 times.
7. The unit price is low, and there should be more zeros after the decimal point. If the unit price is hundreds or thousands of U at the beginning, more than 80% of the leeks will be scared away. Especially in the bull market, those who rush in are all new leeks, who only look at the unit price and do not understand the market value. The unit price of meme coins and public chain coins is very low at the beginning, and 3-5 zeros are normal.
8. It is best to use a public chain or a head protocol on a public chain. The best way to make money in the cryptocurrency world is with a public chain. In the 21st year of the bull market, more than 10 public chain coins with a hundred-fold increase emerged, such as Sol Matic Avax Sol FTM, each with its own advantages. There are also many head protocols, such as Uni Aave Cake XVS, etc. Why don’t I participate in Hong Kong’s hot coins ACH Lina Kdy? Because they are not public chains, many things have a short life cycle, and they are over after a wave of speculation. But the public chain is different. It has always been a hot spot and has always been about building an ecosystem and market value.
9. The founder, team background, investment institution, and financing amount should be reliable. The founder should preferably be a famous person in the cryptocurrency circle, such as the Ethereum core team. For example, the founder of KAS is God Y, and the founder of ROSE is Professor Song. Having a well-known institution participate in the investment is equivalent to an additional endorsement. The financing amount and project valuation are also very important. Good public chain projects are generally valued in the billions.
10. Those who violate the logic of value investment cannot participate. What does it mean to violate the logic of value investment? For example, AMPL is stable, and there was a deflationary token on arb before. The more you hold the token, the less you will get. Whenever you see this, no matter how innovative it is, don't participate. In the end, it will definitely be a mess and you will be cut off completely. AMPL cut off many big Vs. If you think you are a natural fast runner, then ignore what I said.
11. Try not to participate in old coins unless there is a very strong new narrative. For example, this round of RNDR CFX are old coins, but their narratives are very good, perfectly fitting the main theme of this new round of bull market. The former spans the hot spots of several tracks such as AI GPU NFT chain games AR VR metaverse, and it is difficult to be eliminated with basic settings. The latter is a better, faster and safer public chain, and it has the resource support of the national government behind it. In addition, Hong Kong will become the core of the new round of WEB3.0, making CFX the core target of Hong Kong's hot spots. Putting aside the Hong Kong hot spot, it is also a better public chain, and it also has its ecology and value.
12. Choose the first track, and try not to choose the latter. The Hong Kong hotspot I chose is CFX, and the eco-coin I chose is the dex token PPI. The eco-coins on CFX are all incubated on PPI, so it is the first eco-coin.
If you read the above 12 points carefully, then you should understand that you don’t need to look at all the coins mentioned above anymore, because they have already passed the market trend. It is highly unlikely that there will be a second wave of 100-fold market trend, and even the probability of 10-fold market trend is very low. What you need to do is to screen out new coins through these 12 iron rules.
As an investor who has been working in the cryptocurrency world for many years, I am willing to share my experience and insights with you. If you are interested in the cryptocurrency world but don’t know where to start, you may want to follow my homepage and discuss the mysteries and future possibilities of the cryptocurrency world with me. Click on the avatar to find me.
