🚨🚨 Did you know that if you had invested $10,000 in STRK 7 months ago, you would have lost $8,500 (-85%) today? 🚨🚨
I bet you are holding these tokens (they are programmed to fall) without even knowing it 🧵👇
Most people are too lazy to do basic research. But they are not too lazy to buy on every dip.
They wonder why their portfolio shows -20%, -50% or even -80%. They are missing a crucial factor.
Today I will show you how to identify a token with a guaranteed -90% downside potential.
The key is to compare how unlocks influence the token’s chart.
What does this mean ?
Early round venture capitalists (VCs) get a huge amount of tokens, but they are unlocked over time in rounds.
Here are two illustrative examples:
In April, the price of $STRK fell, remaining below $1.3 with a market capitalization of $800M.
In May, when the price rose to $1.3, the market capitalization was $1.7 billion. That’s +$400M in one month.
$ARB. In November, it was trading at $1.1 with a market cap of around $1.3 billion.
The price then rose above $2, boosting the market capitalization. In April-May, the price fell to $1, but the market capitalization increased to $3 billion.
What is going on ?
VCs invest in different rounds under different conditions. At some point, the VC tokens start to unlock.
Just before the unlocks begin, the price skyrockets, and they actively start selling.
How it works: Price increase → Unlocking → Sale of VC → Purchase by individuals.
How to define a good project?
Be sure to check the unlock charts, like for STRK and $ARB . Market cap and price should be almost in sync.
$AVAX is a great example 👇
The best way to find such projects is CryptoRank. This allows you to compare market capitalization and price at the same time.
Step by step :
See how many percentage of tokens have already been unlocked.
➱ Go to cryptorank.io
➱ Go to the “Token Unlocks” tab.
You will see the % of tokens locked and unlocked, as well as the start of the next unlock round.Search and compare token market cap and price.
➱ Find the token in the search bar.
➱ Select "all-time" and add "MC".
Try to find tokens where the market cap and price are close to parallel.
Make sure the tokens have already experienced unlocks and handled them well. Be wary of projects with 1 or 2 rounds, because in the long run they may fail.
In conclusion, I must say:
Many people lose their fortune due to lack of knowledge.
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