In the cryptocurrency market, finding 100x coins (digital assets with the potential to rise 100 times or more) has always been an investor’s dream. This article will introduce a successful method for finding promising crypto altcoins through probabilistic screening. This approach is derived from a successful investment experience during the last bear market, and has been further developed in the context that the Fed's interest rate hike cycle is coming to an end and the market is ripe for bottoming.
background story:
At the bottom of the last bear market, a friend established a fund called the "Return to Zero Fund". Their strategy is to diversify their funds into 50 small-cap altcoins, hoping to pursue high returns with a "return to zero" mentality. In the end, they successfully captured some low-probability 100-fold coins, such as AAVE and LINK, and achieved hundreds or even thousands of times in the bull market, bringing huge returns to investors. However, this successful experience also reminds us that finding 100x coins usually requires a certain amount of luck, so it is more suitable to search through probability screening.
Main screening criteria:
To increase the probability of investment success, here are some of the main screening criteria that investors can use to select promising crypto altcoins:
Technical aspect: Pay attention to projects that have fallen by more than 90% from their past highs and are ranked around 100-1000 in terms of market capitalization.
Fundamentals: The project's GitHub is still being updated and the community is still running
Chip side: Pay attention to those projects where the chips have been fully traded, the chip release has been completed, and there are major market makers.
Narrative: prefer new projects with new concepts and launched during the bear market.
Liquidity: Prioritize projects that can be traded on compliant fiat currency exchanges (such as Binance, Coinbase, OKX, etc.).
Potential investment areas:
Based on the above screening criteria, here are some promising crypto investment areas:
1. Defi (decentralized finance): With the rise of speculative demand in the bull market and the improvement of the second-layer expansion plan, the Defi field will bring more composable gameplay. Some potential projects include GRAIL, JOE, MCB, LYRA, etc.
2. Blockchain Games and Metaverse: The blockchain game field is breaking the traditional game business logic and returning value and benefits to players. Platform projects such as MAGIC, AGLD, YGG and HALO are expected to flourish in the future.
3. NFT (Non-Fungible Token): The NFT market continues to grow, facilitating the creation, trading, and financial services of digital assets. Projects such as SUDO, BEND, and OPUL provide NFT solutions in different fields.
4. Social: Web3 social graph is expected to explode in the future, providing support for project parties to build products and communities. Projects such as GAL and RLY focus on this area.
5. Combination of artificial intelligence and blockchain: The combination of artificial intelligence and blockchain is still being explored, and projects such as AGIX, FET, ALI and RNDR will create new business models and opportunities.
6. Meme: Meme coins such as DOGE and SHIB have skyrocketed in the last bull market, and emotional narratives also have certain value. Projects such as XEN, BITCOIN and TSUKA have development plans in this area.
7. Payment: As more institutions adopt crypto payments, crypto payment providers such as ACH will see long-term demand.
8. Infrastructure: Decentralized infrastructure helps attract mainstream users to join the Web3 world, and projects such as DAO, RAD, POND, CTSI, STG, AXL and SIS are driving this development.
9. Public chain: Building a public chain can provide a core value carrier for Web3. Projects such as CANTO, KAS and CFX have potential opportunities in this field.
Finding 100x coins is a high-risk, high-reward task that requires careful risk assessment and adequate research and due diligence. These screening criteria and investment areas only provide a starting point, but the final decision should be based on personal investment goals and risk tolerance.