Altcoins Talks - Cryptocurrency Forum
Archive => Sorting Box => Topic started by: NewspaperD2 on September 11, 2023, 05:32:55 AM
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1. Investment Fund/Backer/Market Maker (Most Important)
When it comes to investment funds, prioritize large funds with a history of participating in successful projects that have seen substantial token price increases. These funds should work together to push the price higher. Too many investment funds involved in a project can lead to a lack of consensus on the price trajectory, no matter how large the funds are. Just like in real life, some funds invest just for fun and quick profits, leading to token dumps rather than long-term commitment. Choose projects with reputable funds, a reasonable number of participants, and a history of successful collaboration (working together to drive token prices).
Backing from influential entities is crucial. For example, the increase in the price of Binance's fan token is more significant than CHZ's fan token. Therefore, it's essential to choose projects with some level of influence. This is also one of the reasons why C98 hasn't pumped as strongly as SFP and TWT in recent days.
In terms of Market Makers (MM), top-tier projects attract MM activity, not every project can secure their services. Wintermute, for instance, only collaborates with top-notch projects. Other prominent MMs include Jump (known for aggressive price manipulation) and Paradigm. You can track their activities on various on-chain analysis tools.
2. Project Stage:
Every project goes through different stages of development: Development, Peak, and Decline. It's early to invest in projects during their stages.
Chart Analysis: If a project's chart continually seeks new lows, it's best to avoid it. While some projects occasionally experience a rebound, there are usually better options than choosing projects with consistently declining charts.
3. Tokennomics:
Circulating Supply: For projects with strong backing, it's beneficial to have a moderate circulating supply to facilitate price manipulation. It allows backers to easily drive up the price. For instance, TWT recently had significant price increases due to a relatively low circulating supply. In contrast, C98 couldn't increase much because it has a higher circulating supply. However, investing this way means you need to swim with the whales, and going against them can lead to substantial losses if the whales intend to scam or default.
Market Cap: Prefer projects with a smaller market cap. For example, a project with a $1 billion market cap needs an additional $1 billion to double the price, which is much more challenging than a project with a $100 million market cap.
Token Use Case: Consider the purpose of the token. What benefits does holding it provide? Can holding the token impact the project? Some projects experience significant price increases even without a clear use case for their tokens, while others offer limited benefits to holders. For example, Lido has seen tremendous price growth despite limited token benefits.
Vesting and Unlocking Schedules: Check the token vesting and unlocking schedules to plan your investment. Upcoming token unlocks can be a negative factor.
Liquidity: Prefer coins with good liquidity, making it easier to buy and sell. When MMs push the price, they consider coins with good liquidity for dumping.
4. Market Trends and BTC:
All projects are derived by Bitcoin's trends except for rare exceptions. In a bearish market or when there's no strong trend, projects may struggle to increase in price due to low liquidity and inexperienced traders.
5. Project Team:
#DevelopmentTeam : Choose projects led by individuals who have previously worked on successful projects. For example, if Andre Cronje specializes in DeFi, consider his DeFi projects. Avoid projects with developers who have faced controversies.
6. Money Flow:
Monitor where the money is flowing, such as into categories like DEX or Wallet. Prioritize projects aligned with these categories while considering the above criteria. Knowing where money is flowing takes practice.
7. Project Marketing:
News and Updates: Prioritize projects with positive news, active Twitter accounts, and partnerships with reputable entities.
Community Support: Although this preeminent applies to meme coins, community support can be a positive factor for other projects as well.
8. Other Relevant Criteria:
Technology: Consider the technology behind the project. While not a primary criterion for most tokens or coins (except meme coins), advanced technology can contribute to long-term success.
Smart Money/Onchain: Check if there is a significant presence of smart money wallets. High-value
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Hello guys, who knows what's new with crypto? What coins are your favorites? What will be bombed?
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1 Check out the project’s website
2 Read the white paper
3 Scrutinize social media channels
4 Analyze the project team and partnerships
5 Evaluate the cryptocurrency’s market metrics
6 Study the price history
7 Determine whether the cryptocurrency has a utility
Read full for yourself here https://www.coindesk.com/learn/7-key-ways-to-evaluate-a-cryptocurrency-before-buying-it/ (https://www.coindesk.com/learn/7-key-ways-to-evaluate-a-cryptocurrency-before-buying-it/)