If you put $10,000 in $STRK 7 months ago.
Today, you would be down by $8,500 (-85%).
I bet you hold these tokens (they're programmed to dump) and don't even know about it 🧵👇
Most people are too lazy to do basic research.
But they are not too lazy to buy dip after dip.
Wondering why their portfolio is showing -20%, -50% or even -80%, they are missing a crucial factor.
Today, I will show you how to define a token with guaranteed -90% potential.
The key factor is to compare how the unlocks influence the chart of the token.
What does it mean?
VCs in early founding rounds get a huge amount of tokens, but they are unlocking over time by rounds.
Let me show you two illustrative examples:
In April, $STRK price was dropping, staying under $1.3 at $800M MCap.
In May, when the price got back up to $1.3, the MCap was $1.7 billion.
That's +$400M to MCap in 1 month.
$ARB. In November, it traded at $1.1 with MCap around $1.3 billion.
The price then surged past $2, boosting the market cap.
By April-May, the price dropped to $1, but MCap became $3 billion.
That's +$1,7B to MCap.
What is happening?
VCs invest different rounds under different conditions. At some point of time, VC tokens starting to unlock.
Right before unlocking begins, price pumps, and they're actively starting selling.
How it works: Price pump → Unlock → VCs sell → Retail buy.
How to define a good project?
Make sure you check unlock charts, as in $STRK and $ARB.
The market cap and the price need to be almost synchronized.
$AVAX is a great example 👇
The best way to find such projects is CryptoRank.
It allows you to compare market cap and price at the same time.
Simple step-by step 👇
Firstly, you need to see how many percent of the tokens have already been unlocked.
➱ Go to http://cryptorank.io
➱ Head to the Token Unlocks tab.
There, you will see the % of locked and unlocked tokens, as well as the start of the next unlock round.
Then search and compare the tokens' Market Cap and Price.
➱ Find the token in the search bar.
➱ Select all-time and add MC.
Try to find tokens where MC and price are close to parallel.
Make sure the tokens have seen unlocks before and are handling them well.
Be aware of projects with 1 or 2 rounds because, in the long term, they may fail.
In conclusion, I must say:
Tons of people lose their fortunes because of their lack of knowledge.
Make sure you are becoming smarter every day and don't forget to follow me @Crypto PM
THAT'S IT FOR TODAY.. CYA!
#WhaleAlert #Whale.Alert #cryptopm #VCdumping #AltcoinInvesting
