1. Research a lot of information about projects calling for capital from large funds:
Jump, Binance Labs, A16z,..call as many times as possible, the closest the best is to call right in the downtrend.
• Jump Crypto is a branch specializing in investing in the cryptocurrency market of financial group Jump Trading LLC, established in 1999 with more than 700 employees in Chicago, New York, Austin, London, Tel Aviv, Singapore,...
=> Veteran and experienced team to evaluate the project. Successful with deals such as SOL, NEAR, APT, INJ, CHZ,...
• A16z is a Silicon Valley venture capital firm founded in 2009 10 years after Jump Trading. As of April 2022, a16z is managing a total of nearly $30B. Successful deals such as SOL, AVAX, NEAR, FLOW, UNI, DYDX, OP, APT...
• Binance Labs was founded in April 2018. After becoming the fastest company to become a tech unicorn in early 2018, Binance has aimed to create a stronger blockchain ecosystem through investment, incubation and support. Projects invested by Binance Labs are often listed on launchpad on Binance (binance knows the supply, easily pushes prices so it has huge ROI) such as AXS, MATIC, FET, SAND, INJ, GMT, HOOK, ID,...
=> With the CZ brand "King of creating trends".
-Research sources for capital: Cryptorank, Chainbroker, Dropstab,...
2. Analyze what the project has been doing:
See parameters Market Cap, FDV, TVL, transactions, users, dapps... compare with similar competitors.
– L0 versus L0 like DOT, AVAX, ATOM
– L1 compares ETH, ADA, SOL, NEAR, AVAX, APT, FTM, INJ,… – L2 compares ARB, OP, Base, Metis, ZK-sync, Stark-net…
– Tokens in each segment are compared with exchange coins, defi, game-fi, wallet, storage, depin, AI….
Business model, products, technology, dapps, users, traffic... future orientation
=> Consider whether this model can attract cash flow? Update Twitter, Project Website regularly to see if there are any new updates, see feedback from the community, see who is following, whether followers are fake or not, etc.
=> To know the marketing strategy of the project See which influential KOLs follow such as CZ, CEOs of funds, Founders of large projects, Kols in crypto,...
=> You can refer to Dropstab's TOP followers => put them in the tracking list
3. Careful tokenomic analysis
– Allocation, private price, series….
– Token use case, – Inflation to have a short-term or long-term strategy. Check on-chain how much is on the floor, how much is the project holding, what is the whale holding...
4. Ask the right questions:
“What rate of return is this project likely to achieve?”
– Set target according to Market Cap depending on the market moment
– Platform Coins that reached capitalization during the 2021 uptrend season averaged 10-20B such as MATIC, AVAX. NEAR, FTM,..with an ecosystem of over 100-200 dapps……or over 60B with SOL, ADA, BNB, ETH
– Platform coins reach an average capitalization in early 2023 from 2-10B such as SOL, NEAR, AVAX, APT,... new coins like APT reach about 3.2B
– Layer2s like ARB, OP reach a capitalization of about 1B with FDMC 5- 10B – With TOKEN Lead trends like CAKE, AXS, SAND, GMT at their peak, they often have Market Cap of 5B (when fomo cash flow) Floor Tokens often reach Capitalization around 1-3B (feasible target) For launchpad products, they are often heavily pumped with capitalization >1B, while in launch pool, almost 90% of projects do not reach a capitalization of more than 500M Added to the watch list: Projects called There are many huge bakers with capital, capitalization is still low, the project is constantly updated, the ecosystem is thriving in the downtrend, attracting cash flow to attract devs, dapps, users, good tokenomics (with advantageous usecase tokens),... Wait to buy L1 L2 projects when the cap is a few hundred M
+ SOL x250 times when capping floor list about 40M, ADA x150 times when capping 500M, MATIC x100 times when capping 100M,...
+ Recently L2 OP 0.4 cap corresponds to 70M then x6, L1 APT at 3.5 cap 400M then x6 cap to 3B, L1 INJ cap 100m to 700M in 2 months,...
+ Trend-following tokens often have high profit rates of 50-100M, especially new projects launched on binance => Depending on the time, the model of the project, the valuation level is suitable for the line market money….
When market capitalization is almost saturated compared to other projects => You should just look and wait for a good position, or find projects that are undervalued with corresponding potential. One year No need to hold too many important projects, choose the right project at a low valuation like OP 0.4-0.6, APT 3.5, INJ 1.5-2,...
=> It is possible to change positions => Requires patience
5.Check chart
– Has the price + volume tightened the supply => is there accumulation, is there a MM team to support the price, chart of withdrawals from the floor in the past year, see what areas the fish are gathering in => watch for resistance areas. -Check on-chain => Deposit -withdraw, MM team, Smart money, Whales collect from any price floor, or receive from a project to sell,... -Timing beautiful Bitcoin waves, a catalyst for the project to explode What is the next explosion? Are there any KOLs as backers? Find the right time to buy, manage capital and divide it into DCA price increases or decreases according to the trading system.
Pay attention to the liquidity of each stage of the market. 2021 target cap is a few B to a few dozen normal B But by 2023, it will only pump strongly below <1B BEGINNING OF THE NEXT YEAR IT MAY BE THE TIME THE PROJECT WILL BE PUMPED TYPE - AGIX, FET pump accordingly AI wave => community fomo <1b – CFX, ACH pump Hong Kong wave => news => <1b – LDO, FXS pump LSDFI wave => follow the upgrade news trend of ETH – UNFI, TRB lowcap => MM supply tightening => pump cap 100M - YGG, HIFI, CYBER => cap 40M raised to 200-300M - LUNA pump 40% before mid-autumn festival (3 days) => according to community fomo news Take profit according to Market Cap +Volume according to BTC wave conditions. Choose the right civilization – the right time.
