I've been lucky to get in on projects very early & made huge profits on $SOL, $GALA & $MATIC
I know it's hard when you start out in crypto.
But heres a simple MEGA THREAD , to get you started & hopefully find that next hidden gem. ๐งต
Pls RT if you find it useful.
I know it's hard when you start out in crypto.
But heres a simple MEGA THREAD , to get you started & hopefully find that next hidden gem. ๐งต
Pls RT if you find it useful.
1/ DO NOT focus on current price alone. Just because something is pennies like $SHIBA, $XRP or $SAFEMOON, does not mean its a bargain or good value.
2/ YOU SHOULD focus on "Tokeconomics". This includes:
-Total circulating supply
-Total market cap AND fully diluted market cap
-Who owns the tokens
-How inflationary/deflationary is it
I'll explain more...
-Total circulating supply
-Total market cap AND fully diluted market cap
-Who owns the tokens
-How inflationary/deflationary is it
I'll explain more...
3/ TOTAL CIRCULATING SUPPLY
This basically is the max number of coins/tokens that will ever exist on a project. The higher the number, generally the worse it is. Think of it like total shares issued in a company. The higher it is, the smaller the price of a coin will be.
This basically is the max number of coins/tokens that will ever exist on a project. The higher the number, generally the worse it is. Think of it like total shares issued in a company. The higher it is, the smaller the price of a coin will be.
4/ TOTAL MARKET CAP, Part 1
Market cap is the current price of the token x the current circulating supply. And fully diluted market cap is the current price x total coins in existence. The market cap figure is far more important to evaluate than the current price of a project
Market cap is the current price of the token x the current circulating supply. And fully diluted market cap is the current price x total coins in existence. The market cap figure is far more important to evaluate than the current price of a project
5/TOTAL MARKET CAP, Part 2
Heres a simple working example. Comparing two gaming ecosystems $GALA (price $0.4) v $UOS ($1.74) we might think the first project has better growth potential. But looking at market cap we can see $UOS's market cap is around 1/8th of $GALA.
Heres a simple working example. Comparing two gaming ecosystems $GALA (price $0.4) v $UOS ($1.74) we might think the first project has better growth potential. But looking at market cap we can see $UOS's market cap is around 1/8th of $GALA.
6/ TOTAL MARKET CAP, Part 3
This means, because its market cap is so much lower, it will take far less money to grow the price of the project. For example $2BN extra investment in $UOS would see it grow by x2 whereas the same amount in $GALA would only grow it be 12.5%!
This means, because its market cap is so much lower, it will take far less money to grow the price of the project. For example $2BN extra investment in $UOS would see it grow by x2 whereas the same amount in $GALA would only grow it be 12.5%!
7/ WHO OWNS THE TOKEN, Part 1
Even if the market cap is good, with a ways to grow, this is not enough to form an opinion. Next you need to look at who owns what proportion of tokens. The ideal would always be a small % to insiders or investors and a bigger % to the public.
Even if the market cap is good, with a ways to grow, this is not enough to form an opinion. Next you need to look at who owns what proportion of tokens. The ideal would always be a small % to insiders or investors and a bigger % to the public.
8/ WHO OWNS THE TOKEN, Part 2
Here is a simple working example, comparing Genopets ($GENE) and Gold Fever ($NGL). As we can see on the left $GENE has give over 50% of supply to the team and investors. While $NGL gives only around 20%, with the majority being disturbed in game
Here is a simple working example, comparing Genopets ($GENE) and Gold Fever ($NGL). As we can see on the left $GENE has give over 50% of supply to the team and investors. While $NGL gives only around 20%, with the majority being disturbed in game
9/ WHO OWNS THE TOKEN, Part 3
Based on this case i would bet on $NGL over $GENE, as there is less threat of rugpulls/the investors dumping their coins
Based on this case i would bet on $NGL over $GENE, as there is less threat of rugpulls/the investors dumping their coins
10/ INFLATIONARY VS DEFLATIONARY
The next thing to consider is how deflationary or inflationary a project is. If the latter be wary, this is a red flag for me. It will continually put pressure on the price downward and prevent big gains from occurring.
The next thing to consider is how deflationary or inflationary a project is. If the latter be wary, this is a red flag for me. It will continually put pressure on the price downward and prevent big gains from occurring.
I will be writing more on this topic over the coming week.
Let me know if you found it useful ๐๐๐
Let me know if you found it useful ๐๐๐
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