I will analyze the project's fundamentals, background, market value and circulation, narrative, token's economic model, price and value one by one, and explain them to you in detail, so that you can know more clearly how to choose projects, evaluate the value and potential of projects, and make effective investment strategies to achieve better results:
1. The project has good fundamentals, including the founders, team background, investment institutions, financing amount, project valuation, etc. It has a strong moat and a clear leading position; the ceiling of the track should be high.
2. Regarding the project background, there are well-known institutions supporting it, such as a16z, DCG, or Binance IEO, and institutions that have invested in hundreds of times coins in the past, such as Multicoin, Grayscale, etc.
3. The market value ranks in the top 300, the market value of the project is 100-200 million, preferably not more than 500 million, the circulation volume should be large, the circulation volume ≥ 60%, the tokens are distributed, retail investors hold the coins, the chips are dispersed, and the turnover is sufficient; or the institution has completed the accumulation of funds at the bottom period and can fully control the market. If the circulation volume is not high, there are always unlocked chips, and the selling pressure in the later period is also relatively large. Too low circulation may lead to market selling pressure and affect price trends.
4. Be able to tell stories, be able to create things, write stories, have strong narrative skills and new narrative skills; the narrative can be combined with sector rotation, conform to hot trends, and fit the main theme of this round of bull market; be able to solve practical problems and have long-term value discovery.
5. The best time for the token to go online is at the end of the bull market or the beginning of the bear market. According to this wave, the estimated time is the end of 2021-2023 for new projects that have not experienced bull and bear markets. There is no locked-in position above, and there is no pressure to pull the market. The bear market is not highly concerned, and no one is interested. It can quietly accumulate strength, and the time for washing the market is long enough to attract more investors.
6. Regarding the economic model of Token, check whether there is additional issuance (it is better not to have additional issuance), whether there is a destruction mechanism (it is better to have a deflationary destruction mechanism), and the unlocking cycle and unlocking amount.
7. Regarding washout + strong dealer + good play, the daily bottom hovers long enough, the bottom shrinks for a long time, the weekly bottom hovers long enough, the bottom shrinks for a long time, the purpose is to wash out the unsteady chips; the dealer absorbs chips at a low price; there is a strong dealer behind and he knows how to play. After the bottom shrinks for a long time and goes sideways, it continues to increase in volume, and the bottom rises no more than 2-3 times.
8. Regarding price and value, price ≈ institution’s cost price, price ≤ 2-3 times of institution’s cost price. It is best to go online and break even. Value: the project valuation should be approximately 1 billion US dollars.
9. The Dark Horse of 100x Coin also has a distinctive feature. The liquidity is very poor. They basically go to small exchanges first. They can easily be judged as local dogs, or the acquisition is very complicated, and the knowledge threshold and operation threshold are very high.
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