Thread by @TheEwansEffect

Investing in $METIS Lowcaps? Or any eco for that matter.

4 main things I look at.

Might save you from some rugs.

Short 🧵, Like & RT.

1. Liquidity: The ease at which the token can be bought or sold, you can track liquidity with @dexscreener by inputting the contract code & searching.

Lower liquidity = Higher volatility.

Higher liquidity = Lower volatility.

Simply means the lower the liq, the easier it's affected by buys & sells and knowing this, you can manage your risk tolerance and know what you may be willing to invest in any token.

Lower liq doesn't mean bad, it may mean that the project is early and on the + side,

Continuous buys would keep you on a higher profit than a token with higher liq.

Downside? The sells affect you much more + higher chance of getting rugged.

2. Team updates:

Stay glued to their Twitter for a lot of announcements and work from the Devs, knowing the team is building & showing it is always a good sign.

@metisamainu does this very well.

Followers may not matter as most projects are very new.

3. Innovative plays/Usecase:

@MetisDAO is a growing chain and as such some very high value plays are those which have seen success on other chains & are forked to Metis, or a token with first movers advantage & adding utility to the chain.

Examples:

- @BinaryDAO_fi an Innovative #DaaS

- @starstreamfin, first yield aggregator on $METIS

- @repath_finance an innovative tomb fork (bullish on this one personally)

- @NomosInu P2E on Metis, Good gameplay too.

There's been more in the Eco, the point is i don't usually go for tokens with one way uses like just reflections only and no apparent value pegged to it, except I just wanna ape blindly.

Positioning yourself in projects like these can give very good gains. Forgot $BULMA too.

4. Community: What's the general feel on it on social media? If you can't find a telegram, active social media presence, or some noticeable shills, it's a very red flag.

Do not just ape into any thing you may see on Dex screener because it's having a nice %

The community stretches to Telegram or Discord, usually.

Happy community = Happy project.

If they're bullish on it but small in number, you might have just seen an early gem.

Obviously, passing all these 4 metrics or utilizing them won't give you a 100% win rate, but you might save someone with it + sharpen your own Investment metrics.

Stay safe out there, might do a thread on other possible Yield Farming strategies on $METIS in the future.

Thank you for your time ;).

Share & RT if you found these helpful. Let me know what you may want me to cover next too!