May 20, 2024 Grandpa checks in
Since the beginning of this year, various newly launched high FDV projects have begun to attract market attention. Since the market has not experienced a long decline, the disadvantages of such projects have not yet fully manifested. However, investors have begun to gradually notice the risks of such projects, especially early investors who acquired locked chips at extremely low prices and sold them in advance at a single-digit discount. This behavior "digests" the future increase of tokens in advance. After all, the funds willing to take over are likely to be sold immediately after unlocking.
The financing methods of the B circle have evolved in different periods. This kind of low circulation and high FDV is not the first time, but such a large-scale project has not entered the market intensively before. Judging from the situation of previous individual projects, low circulation can attract traffic and facilitate the main force to manipulate prices. In order to keep the price going for a long time, there must be a rapid growth in value. The issuance of tokens in the B circle is actually a relatively simple thing. The difficulty is to make the project valuable. Therefore, it can be boldly predicted that the final result of this batch of intensive high FDV projects will still be a mess.
The biggest problem of 1CO is over-issuance and compliance. However, looking back, the 1CO price of Ethereum was $0.31, and 83% of the supply at that time was sold at this price, raising $16 million. Participants received a return of about 10,000 times based on today's price. The 1CO price of BNB was $0.15, and even without counting the income from various new rights, there is a return of nearly 4,000 times. Today, FDV has a total market value of hundreds of millions or even billions of dollars, or even more than $10 billion. Imagine if we buy it now, is it wishful thinking to expect to get super high returns?
In fact, since the bear market last year, my strategy has been to explore opportunities in the secondary market, and the projects in the secondary market have achieved an average increase of more than 10 times from low to high. As for the new coins this year, my strategy is to take them if there is an opportunity to get low cost, and wait and see if there is no opportunity, and don't easily take over high FDV projects. In terms of the market, our recent operations are to try to avoid new coins as much as possible, and choose some old and business-supported coins to do some trading.
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