php Editor Xigua’s 100x coin in 2024 has become an investment hotspot, and investors are looking for the next 100x coin. How to find the next 100x coin? The following five steps may help you find potential projects with doubling potential: research market trends, focus on popular areas, conduct in-depth analysis of project fundamentals, pay attention to team background and strength, make prudent decisions, and invest rationally. By following these steps, you may be able to discover the next potential 100x coin project.
Is it really possible to rise a hundred times? Is the 100x coin just a legend in the currency circle? Let’s take a look at last year 2023:
CoinGecko This data is the 2023 growth ranking of the top 100 cryptocurrency coins by market capitalization. Among them, the cryptocurrency with the highest growth is Bonk, with an increase of 7300% (73x).
There are no 100x coins in 2023, and if there are, they are mostly short-lived meme coins. Although Bitcoin performs well in 2023, this year is still not a bull market for most cryptocurrencies, and is even in a bear market. , but compared with 2022, the market situation has improved, and the market stage has begun to enter the end of the bear market.
If you look further ahead and see the bull market from the last Bitcoin halving (May 2020) to 2021, there will be more than 100 times the number of coins; Juheng.com published an article, We are talking about the 100x coins that appeared in the last bull market. According to the numbers compiled in that article, during the last 2020-2021 bull market, 61 100x coins appeared among the top 600 cryptocurrencies by market capitalization.
Solana is a public chain that is currently attracting much attention, and its token $SOL was listed shortly before Bitcoin’s third halving. In the year and a half after its listing, $SOL hit a record high of $259.96, an increase of 43,220%. This number is impressive, with $SOL increasing more than four hundred times in just a short period of time.
Hundred-fold coins are not fictitious rumors in the currency circle. They do appear during the bull market. Although they are not unique, there are only 61 in the top 600, so not all coins are likely to rise hundreds of times.
Although there is a chance that a 100x coin will appear during the bull market, it is still rare. There is no indicator that can 100% guarantee that you will find a 100x coin, but there are still Simple principles can increase your chances of finding a 100x coin.
Here we share five steps to find a hundred-fold coin:
Find out the track with development potential
In Find potential projects (technology, models, teams, etc.) in the track
Check the token economic model and evaluate whether the token has upside potential
The market value cannot be too high. It is difficult for a project with an already high market value to increase a hundred times.
Don’t put your eggs in one basket, diversify your investments to increase your chances of success
Track, sector, and field are just words that refer to different categories and classification methods in cryptocurrency. It may come from the type of the project itself (such as L1 / L2), or the application scope (such as payment / privacy), or technical differences (such as Optimism / ZK), etc.
Cryptocurrency is just a type of asset and can be divided into many different categories. Some categories have relatively large market potential in terms of conditions, while some are relatively small or face more difficult market expansion. Only with a large enough market scale prospect can the project's high market value be supported. If the market size of a category itself is small, the cryptocurrency projects in this category will have less chance of having a high market value.
Q: How to evaluate whether the track has potential? Is there a business scale that can increase a hundred times?
ＡA: The most direct way is to look at the track market value. To some extent, the market value can be understood as the value consensus of the entire market for this thing. The track market value can be viewed from information websites such as Coinmarketcap and CoinGecko. In addition, referring to the analysis of other research institutions, the latter part of this article will list the list of tracks that research institutions are optimistic about in 2024.
Cryptocurrency project research is a big topic. To fully explain it, you may need to write a 10,000-word article. Here are a few simple An important point.
After the first step is to identify potential tracks, the second step is to find potential projects in the tracks. How is it considered to have potential? One is that its business model has reached a key position, and if this track grows, it will inevitably be driven; the other is that it has mastered key technologies and can do things that other projects cannot do, or can use them faster Cheaper way to do it.
But after all, the white paper and vision plan of the project may just be a mouthful, and may not actually be achieved, so it is also necessary to examine the team background of the project, such as the founder’s past experience, the qualifications of core members, and The investment team (if there is one) uses this to evaluate whether the project really has the execution capabilities to achieve its goals.
Token economic model (Tokenomics) is a very important part of cryptocurrency, regarding the issuance supply, issuance speed, etc. of a project’s tokens. Distribution proportion, token usage, etc., all belong to the scope of the token economic model.
First of all, the issuance volume and issuance speed will not only affect the FDV mentioned in the next paragraph, but also the inflation rate. If the token inflation rate is too high, even a potential project will have difficulty. A huge increase because the rate of additional token issuance may be faster than the growth rate of the project.
The allocation proportion affects how much potential selling pressure there will be in the future. If a large proportion is allocated to the team and investors, and there are no appropriate lock-up restrictions, as long as the token rises in the future, it may face huge pressure. Profit taking selling pressure.
Through the CryptoRank website, we can see that $Pendle has performed particularly well this year, its token economy and unlocking time, and we can roughly draw the following conclusions
The team plus Private Round allocation is not small: a total of 37%
Liquidity Incentives, Liquidity Bootstrapping Pool: 46%. Nearly half of the circulation is given to the liquidity reward plan. It is quite generous, at least many tokens are distributed to early users
Most of the tokens have been unlocked, and there is not much pressure to smash the market
Through chip analysis, we can roughly know whether the current entry point is at high risk, and then allocate corresponding funds for investment.
Taking the token issuance plan of the public chain project Chromia as an example, it not only lists What are the currency issuance channels and the currency issuance schedule are also listed, which can usually be found in the white paper or documentation of each project.
The allocation proportion affects how much potential selling pressure there will be in the future. If a large proportion is allocated to the team and investors, and there are no appropriate lock-up restrictions, as long as the token rises in the future, it may face huge pressure. Profit taking selling pressure.
Taking Chromia as an example, the token allocation is listed in detail. The largest amount is the ecological development fund, followed by the total amount allocated to incentives, investors and teams. Less than 30%.
In addition to supply and distribution, the purpose of tokens is also very important. Is this coin useful? Will the demand for tokens increase as the project grows? Drive currency prices up?
Why is market cap important? Calculating, the current total market value of Bitcoin is nearly 800 billion U.S. dollars. If it rises another hundred times, the market value will exceed 80 trillion U.S. dollars, which is equivalent to 30 Apple companies.
The current total market value of Ethereum is close to 260 billion U.S. dollars. If it rises another hundred times, the market value of 26 trillion U.S. dollars is equal to 10 Apples and 40 Teslas.
The market value of most of the commodities already circulating in the market is piled up by real gold and silver. If the market value is already very high, it will be increasingly difficult to continue to rise. To rise by another 1%, more and more investment will be needed. The more money you invest.
If you want to find 100x coins, it is very difficult for projects that already have a large market value. You have to look for them in places with a relatively low market value.
The issuance plans of each cryptocurrency are different, and it is more accurate to consider FDV than the circulating market value.
Circulation market capitalization MC = currency price x issuance volume
Fully diluted valuation (FDV), currency price Circulation volume
Q: What is the market capitalization that is considered too big?
ＡA: You can refer to the market value of similar leading companies in the last bull market, and then divide it by one hundred.
For example:
If you want to find the next 100-fold public chain currency, refer to the highest market value of similar leading projects such as Ethereum, BNB, ADA, SOL, etc. in the last bull market, when Ethereum reached The market value is about 500 billion U.S. dollars, and the others are about 70-80 billion U.S. dollars. Calculated conservatively, 70 billion U.S. dollars divided by one hundred = 700 million U.S. dollars.
The first screening indicator comes out, looking for public chain projects with a current market capitalization (MC) or fully diluted valuation (FDV) of less than 700 million US dollars.
Some cryptocurrencies do not have a total issuance limit, so FDV cannot be calculated. Cryptocurrencies without a total limit are based on an inflation model and will continue to be issued, and the issuance volume will become larger and larger. For this type of project, we must pay close attention to its inflation rate. Is it well controlled within the range? If inflation is too serious, it will be more difficult for coins that are issued too much to rise.
I emphasize once again that a hundred-fold coin is hard to come by, and there is no 100% guarantee of finding a hundred-fold coin. method can only increase the chance of hitting. At this point, the investment strategy is somewhat similar to that of venture capital. If you invest in many start-up companies, most of them will fail and go bankrupt, and the investment will end up losing money; but a few of them will succeed, and the venture capital will get dozens or hundreds of times. The reward is enough to absorb the losses of all other failures, and ultimately the overall reward is positive.
If you set the investment goal of buying a hundred times the currency, you will not only invest in one or two coins, and the chance of hitting it will be too low, but you will invest in more potential projects to increase the chance of hitting it.
Five steps to find the next 100x coin
1. Find the track with development potential
Refer to the next paragraph of the article 2024 key tracks
2. Find potential projects in the track
Get stuck in a key position, master important technologies, and the team background and qualifications are consistent
3. Review the token economic model
The inflation rate cannot be too high, and the allocation to the team and investors cannot be too high. More, tokens must have empowerment and value acquisition
4. Screen out projects whose market value is too high
The higher the market value, the harder it is to rise, while projects with low market value are more explosive.
5. Diversify your investment to increase your chances of hitting
There is no 100% hit method, don’t put all your eggs in the same basket
Based on the principles in the previous paragraph, how to buy 2024 100x coins?
First list the potential tracks in 2024
Look for several potential projects in the track whose current market value/FDV is still low enough
diversify investment to increase hit chances
So what are the potential tracks in 2024?
There are too many articles and you are too lazy to read? It doesn’t matter. Let’s summarize it again:
First of all, the key points of the bull market: market expectations and capital increment. The market must have bull market expectations and atmosphere, and more funds must enter the cryptocurrency market to be able to usher in the next round. Bull market conditions. The key to market expectations is #Bitcoin halving, and the two key narratives of capital increment are #Bitcoin spot ETF and #RWA real asset tokenization. Here we can first grasp the two key points of 2024: Bitcoin and RWA , in addition to Bitcoin itself, the former also includes Bitcoin-related ecology, and the latter is a cryptocurrency project that tokenizes various real assets.
The editor has compiled the expectations and outlook reports of five research institutions for the 2024 cryptocurrency market. The key tracks that more than three institutions are optimistic about at the same time are the Bitcoin ecosystem, AI artificial intelligence, and DePin decentralization. infrastructure, DeSoc/SocialFi social finance, and zero-knowledge proof.
It is not easy to buy a hundred-fold coin, but you sell it after it rises by 30%. , it doesn’t matter if it rises hundreds of times later. Compared with buying a hundred-fold coin, holding onto a hundred-fold coin may be a more difficult task.
If you can't hold on, there's no need to deliberately look for a hundred times the coin, because you can't hold it for that long.
If you want to buy a hundred-fold coin, you have to hold on to it, so that you can really enjoy the entire hundred-fold increase.
Buy Holding is called Hodl in the currency circle. Deliberately typing it wrong is a joke that only a currency circle understands. In 2013, a drunk trader posted an article on the Bitcoin forum and he mistakenly typed Holding. Became Hodling.
Since then, Hodl has been used to express a firm belief in Bitcoin and the determination not to sell it for a long time. This is slowly spreading to other cryptocurrencies as well, buy and hold, Hodling!
This is a very common Hodl meme, used to show that although Hodl seems to be very simple to hold, in fact it has to go through various difficulties and obstacles.
It is very difficult to hold on when the market falls sharply. It is even more difficult to hold on when the market rises sharply. It is extremely difficult to hold on to the market when it rises again after a large fall. Although Hodl is to buy and hold and is unmoved no matter whether it rises or falls, Hodl should not be a dead support or a negative order. There is still some belief in the cryptocurrency project, and it must actually be done Hodl has several conditions:
Spare money to participate
Truly believe
Community support
This is the most realistic condition. Spare money refers to money that will not be used for at least a period of time, usually within a few years. If you have one million on hand and plan to use it to buy a new car or hold a wedding within a year or two, losing this money will cause you to get stuck and have an impact. Life planning, then this money is not considered spare money.
If you buy 10-20 cryptocurrencies, maybe only one will be a 100-fold coin. You must have spare money to withstand such a low hit rate. If you can still hold on after a 90% drop, you must have spare money, otherwise you will have to stop loss and sell due to demand for funds.
You can only hold on to it if you have faith. Beliefs need to be supported by information and knowledge, otherwise they are just blind. The project’s white paper, articles or speeches by the founder and team members, development trends in the cryptocurrency field, real-world status, actual project development progress, etc., all need to be clearly understood and reviewed from time to time.
You must know clearly what you believe in so that you can continue to believe in it.
Hodl is not just about holding, you have to do continuous homework and research before and after the process. Only by understanding can you have faith, and only by having faith can you hold on. Holding on without faith is just a trap. .
It is very lonely to do homework, research and pursue information alone for a long time. When the currency price is not as expected, it is also There will definitely be a lot of self-doubt. It is best to have a group of research partners who can share information and opinions with each other and support each other emotionally.
Communities tend to form an echo chamber effect, and the echo chamber effect helps Hold.
Three elements of cryptocurrency Hodler: spare money to participate, sincere belief, community partners
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