How to judge the potential of a currency?
1. Fundamentals
New concept currencies on the blue ocean track often have broad development space and high ceilings. Factors such as active communities and rich entrepreneurial experience of the team are also important factors to consider. For example, GAL is an example worthy of attention. It has been listed on the three major exchanges and has more than 60 million users and stable project updates.
2. Technical aspects
The situation of the dealer's wash, whether there is a strong dealer, and the degree of sufficient chip turnover are all important bases for judging whether a currency has potential. For example, GAL shows the characteristics of concentrated chips, and the market makers have enough chips to operate.
3. Market value ranking
If you pursue high multiple returns, the market value cannot be too high, and it is best to rank after 100. However, potential coins under special circumstances can be exceptions. WLD is such an example. It has a large circulation but a high market value, which poses certain risks.
4. Token economics model
A reasonable token economics model is more conducive to the value growth of the currency. Generally speaking, a deflationary token economic model has more advantages. For example, PEPE is like this. It adopts tax exemption policies, redistribution systems and destruction mechanisms to ensure the scarcity of tokens.
V. Marketing operations and project data
Continuous attention to team operations and project data, including user growth rate and TVL growth rate, can help us judge the potential of a currency. For example, PEPE has received widespread attention due to its practicality and community support.
Based on the above, we need to examine whether a currency is worth holding for a long time from multiple angles such as sectors, project prospects, ecological closed loop, circulation volume and circulation market value.
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