How to find the next 100x coin in the cryptocurrency world in 2024? Five steps to find the next 100x coin
Hundred-fold coin = a cryptocurrency that has increased by 10,000% (one hundred times) or more
Key points of this article:
Hundred-fold coins are not just a legend in the cryptocurrency circle. There is a real chance that they will appear during the bull market, and the probability is not low.
Five principles for finding 100x coins: track, project itself, token economic model, market value, and decentralization
2024 Key Tracks, What are the tracks that institutions are also optimistic about?
What is harder than buying a 100x coin: holding on to the three elements of being a Hodler
Is the 100x coin a legend in the cryptocurrency circle? Can there really be a 100x coin?
Is it really possible for the price to rise 100 times? Is the 100-fold coin just a legend in the cryptocurrency circle? Let’s take a look at last year’s 2023:
This data from CoinGecko is a ranking of the top 100 cryptocurrencies by market value in 2023. Among them, the cryptocurrency with the highest increase is Bonk, with an increase of 7300% (73 times).
Image source: Cryptocurrency blogger X@杀破狼
There will be no 100x coins in 2023, and if there are any, they are mostly short-lived meme coins. Although Bitcoin performed well in 2023, this year is still not a bull market for most cryptocurrencies, and it is even in a bear market. However, compared with 2022, the market conditions have improved, and the market stage has begun to enter the end of the bear market.
If we look a little further back, we will see that there are many 100x coins from the last Bitcoin halving (May 2020) to the bull market in 2021; Juheng.com published an article talking about the 100x coins that appeared in the last bull market. According to the numbers compiled in that article, during the last bull market in 2020-2021, 61 100x coins appeared among the top 600 cryptocurrencies by market value.
Solana, a very well-known public chain at present, had its token SOL listed shortly before the third Bitcoin halving. About a year and a half after its listing, it hit a historical high of $259.96, a 43,220% increase compared to the price at the time of listing, an increase of more than four hundred times in a year and a half.
Hundred-fold coins are not a legend in the currency circle. They really appear during bull markets. They are not very rare. There are 61 of them in the top 600. However, not just any coin can rise a hundred times.
Five steps to increase your chances of finding 100x coins
Although there is a chance that 100x coins will appear during a bull market, it is still hard to come by. There is no indicator that can 100% guarantee finding 100x coins, but there are still simple principles that can increase the probability of finding 100x coins.
Here are five steps to find 100x coins:
Find the track with development potential
Find potential projects (technology, model, team, etc.) in the track
Review the token economic model to assess whether the token has the potential to rise
The market value cannot be too high. It is difficult for a project with a high market value to increase by a hundred times.
Don’t put your eggs in one basket, diversify your investments to increase your chances of success
Step 1 of finding 100x coins: Find potential track sectors
Tracks, sectors, and fields are just words that refer to different categories in cryptocurrencies. The classification may come from the type of project itself (such as L1/L2), or the scope of application (such as payment/privacy), or technical differences (such as Optimism/ZK), etc.
Cryptocurrency is just one type of asset, and it can be further divided into many different categories. Some categories have relatively large market potentials, while others are relatively small or face more difficult market expansion. Only a sufficiently large market scale can support a high market value of a project. If a category itself has a small market scale, the cryptocurrency project in this category is unlikely to have a high market value.
Step 2 of finding 100x coins: Find projects with potential
Research on cryptocurrency projects is a large topic, and here are a few key points.
After finding a potential track in step one, step two is to find a potential project in the track. What is considered potential? One is that its business model is at a key position, and if the 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 do it faster and cheaper.
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 any) words) to evaluate whether the project really has the execution ability to achieve its goals.
Step 3 of Finding 100x Coins: Examining the Token Economic Model
Tokenomics is a very important part of cryptocurrency. The supply, issuance speed, distribution ratio, purpose of tokens, etc. of a project's tokens all fall within the scope of the token economics 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 find it difficult to rise sharply, because the speed of token issuance may be faster than the growth rate of the project.
The allocation ratio affects the potential selling pressure 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 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 can roughly draw the following conclusions:
The team plus the 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 program, which is quite generous. At least many tokens are distributed to early users.
Most of the tokens have been unlocked, so there is not much pressure to dump the tokens.
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 the coin issuance channels, but also lists the coin issuance schedule, which can usually be found in the white paper or explanatory documents of each project.
The allocation ratio affects the potential selling pressure 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 profit-taking selling pressure.
Taking Chromia as an example, the token distribution is listed in detail. The largest portion is the ecological development fund, followed by incentives. The total amount allocated to investors and the team is less than 30%.
In addition to supply and distribution, the purpose of the token is also very important. Is this coin useful? When the project grows, can it drive up the demand for the token? Can it drive up the price of the coin?
Step 4 of finding 100x coins: Find projects whose "market value MC / fully diluted valuation FDV" is not too high
Why is market capitalization important? Let’s calculate that the current total market capitalization of Bitcoin is nearly 800 billion US dollars. If it increases by 100 times, the market capitalization will exceed 80 trillion US dollars, which is equivalent to 30 Apple companies.
The current total market value of Ethereum is close to 260 billion US dollars. If it increases by another 100 times, the market value of 26 trillion US dollars will be equal to 10 Apples and 40 Teslas.
Most of the commodities already circulating in the market have a market value built up by real money. If the market value is already very high, it will become increasingly difficult to continue to rise. To increase by another 1%, more and more money will be needed to be invested.
If you want to find a coin that can increase 100 times, it is very difficult to find a project with a large market value. You have to look for one with a relatively low market value.
The issuance plans of each cryptocurrency are different, and considering FDV will be more accurate than the circulating market value.
Circulating market value MC = coin price x issuance volume
Fully Diluted Valuation (FDV), the coin price x includes the maximum amount of issuance that will be issued in the future
Example:
If you want to find the next 100x public chain coin, refer to the highest market value of similar leading projects such as Ethereum, BNB, ADA, SOL, etc. in the last bull market. At that time, Ethereum reached a market value of about 500 billion US dollars, and the others were about 70-80 billion US dollars. Conservatively calculating at the low end, 70 billion US dollars divided by 100 = 700 million US dollars.
The first screening indicator is here: look for public chain projects whose current market capitalization (MC) or fully diluted valuation (FDV) is below US$700 million.
Some cryptocurrencies do not have a total issuance limit, so FDV cannot be calculated. Cryptocurrencies without a total issuance limit are inflation models, and will continue to increase in issuance, with the issuance volume increasing. For such projects, we must pay close attention to its inflation rate. Is it well controlled within the range? If inflation is too severe, it will be more difficult for coins that are issued too much to rise.
Step 5 of finding 100x coins: Don’t put all your eggs in one basket, diversify your investments to increase your chances of success
I want to emphasize again that it is hard to find a 100x coin. There is no way to 100% guarantee to find a 100x coin. You can only increase the chance of success. In this regard, it is a bit like the investment strategy of venture capital, investing in many startups, most of which will fail and go bankrupt, and the investment will end in a loss; but a few of them will succeed, and the venture capital will get dozens or hundreds of times the reward, which is enough to cover the losses of all other failures, and the overall return will be positive in the end.
If your investment goal is to buy a coin that can increase 100 times your investment, you will not just invest in one or two coins, as the chance of success is too low. Instead, you will invest in more potential projects to increase your chances of success.
Five steps to find the next 100x coin
1. Find a 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 have the right team background and qualifications
3. Review the Token Economic Model
The inflation rate cannot be too high, the allocation to the team and investors cannot be too much, and the tokens must have empowerment and value acquisition
4. Screen out projects with too high market value
The higher the market value, the harder it is to increase. Projects with low market value have more explosive growth potential.
5. Diversify your investments to increase your chances of success
There is no 100% surefire way to win, don't put all your eggs in one basket
What are the key tracks in 2024?
Based on the principles in the previous paragraph, how can we buy the 2024 100x coin?
First list the potential tracks in 2024
Find several potential projects in the track whose current market value/FDV is still low enough
Diversification increases your chances of success
So what are the potential tracks in 2024?
First of all, the bull market focuses on market expectations and capital increments. The market must have bull market expectations and atmosphere, and more capital must enter the cryptocurrency market to have the conditions for the next bull market. The key to market expectations is#Bitcoinhalving, and the two key narratives of capital increment are#Bitcoinspot ETF and#RWAreal 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.
Hold – It is more difficult than buying a 100x coin
You can't hold on, even if it increases a hundred times or a thousand times, it has nothing to do with you
It is not easy to buy a 100x coin, but if you sell it after it goes up 30%, it doesn’t matter if it goes up a few hundred times. Compared to buying a 100x coin, holding on to it may be a more difficult task.
If you can’t hold on to it, there’s no need to deliberately look for coins that can increase 100 times, because you simply can’t hold on to it for that long.
If you want to buy coins that increase 100 times, you have to hold on to them so that you can really benefit from the entire 100-fold increase.
Buying and holding is called Hodl in the cryptocurrency circle. Deliberate mistyping is a joke that only the cryptocurrency circle understands. In 2013, a drunk trader posted on the Bitcoin forum, and he mistakenly typed Hodling instead of Holding.
Since then, Hodl has been used to express a firm belief in Bitcoin and a determination to hold it for a long time. This has also gradually spread to other cryptocurrencies. Buy and hold, Hodling!
This is a very common Hodl meme, used to show that although Hodl seems to be just a simple holding, it actually requires going through all kinds of hardships and obstacles.
It is difficult to hold on to a stock when it plummets, and even more difficult to hold on to a stock when it surges. It is extremely difficult to hold on to a stock when it surges back after a plummet. Although Hodl means to buy and hold, and remain unmoved regardless of whether the price goes up or down, Hodl should not be a stubborn hold, and should not be a short position. There is still some belief in the cryptocurrency project in it.
Be sure to invest in cryptocurrency with your spare money
This is the most realistic condition. Spare money refers to money that you will not use for at least a period of time, usually within a few years. If you have a million dollars and plan to use it to buy a new car or hold a wedding in one or two years, losing this money will affect your life plan, so this money is not considered spare money.
If you buy 10-20 cryptocurrencies, maybe only one will increase 100 times, and you must have spare money to bear such a low hit rate. If you can hold on to a 90% drop, you must also have spare money, otherwise you will have to sell at a loss due to capital needs.
Being a Hodler requires faith and real belief in it.
Only with faith can you hold on, and faith needs information and knowledge to support it, otherwise it will just be blind. The white paper of the project, the articles or speeches of the founders and team members, the development trend of the cryptocurrency field, the status of the real world, the actual development progress of the project... etc., all need to be truly 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 need to continuously do your homework and research before, during and after the process. Only when you understand can you have faith, and only when you have faith can you hold on. Holding on without faith is just a waste of time.
The above content is for reference only and does not constitute any investment advice!
Investment is risky, please be cautious when entering the market!!!
