Based on my years of investment experience, I share the framework for screening out 100x coins:
1. The circulating market value and total market value should be low. The total market value of the public chain should be less than 50 million, and the dapp protocol should be less than 5 million. It is easy to understand that the circulating market value should be low. If the market value is not low, the space will not be large enough, the lower the better. Why must the total market value be low? That is because the tokens will be released slowly in the later 1-2 years. If the total market value is not low, it means that the project party does not need to pull the market, and can get rich by shipping horizontally. In other words, even if it drops 10 times, there will still be high prices and profits.
2. The ceiling of the track should be high. At least the valuation in the big bull market should reach more than 1 billion US dollars. If it is a meme coin, you can refer to Dogecoin, if it is a public chain, you can refer to ETH SOL MATIC, if it is a dapp or other protocol, you can refer to uni aave LDO, etc.
3. New narratives, don’t participate in tracks that are too unpopular. It is best to solve practical problems. New narratives must be long-term value discovery, not short-term cyclical hype. For example, the current AI GPU computing power narrative, a safer, faster and more decentralized public chain, and infrastructure across several tracks such as the Metaverse Chain Games AR.
4. The 100-fold black horse coin must be in a place where no one cares about it. Because the coins known by the whole network are basically opened high (ICP) or normal valuation (ARB), do you think their unit price can increase by 100 times? When the market opens, the total market value is tens of billions or hundreds of billions. Let alone a 100-fold increase, even if it increases by 10 times, it will catch up with ETH and BTC.
5. The liquidity of the early 100x coins is basically very poor, and they are generally on the chain or in small exchanges. Therefore, when many novices see others recommending early coins, they don’t study the value. They keep saying that they don’t want to go to small exchanges, they are too much like local dogs, and it’s too troublesome to buy. There are no apps and they don’t participate. These are all superficial phenomena, and they don’t see the essence of value. When I bought Magic in 2021, it was very troublesome to cross the chain. Later, it increased 10 times in a month. When I bought PPI in February 2023, I also needed a double wallet to cross the chain. I tried many exchanges and they didn’t support it. Later, Gate supported Espace to withdraw coins. Later, the threshold of BRC20 tokens was also very high. It was very troublesome to have points and OTC. In short, high thresholds are the only way to stop leeks. Binance has no threshold, but it is difficult to make money on it. All shipments are made after going online. Refer to the recent trend of RDNT GNS PEPE FLOKI.
6. The best time for tokens to be launched is at the end of the bull market or the beginning of the bear market. When conducting research or buying, the launch and wash time is best 6-12 months, and the circulation rate is better than 50%. KAS was launched in May 22, and the deep wash lasted for about 6 months. The highest increase this year is more than 100 times. PPI was launched in May 22, and it started to explode after 9 months of deep wash. The current circulation rate is about 60%, and the highest increase this year is about 50 times.
7. The unit price is low, and there should be more zeros after the decimal point. If the unit price is hundreds or thousands of U at the beginning, more than 80% of the leeks will be scared away. Especially in the bull market, those who rush in are all new leeks. They only look at the unit price and don’t understand the market value. The unit price of meme coins and public chain coins is very low at the beginning, and 3-5 zeros are normal.
8. It is best to use a public chain or a head protocol on a public chain. The best way to make money in the cryptocurrency world is with a public chain. In the 21st year of the bull market, more than 10 public chain coins with a hundred-fold increase emerged, such as Sol Matic Avax Sol FTM, each with its own advantages. There are also many head protocols, such as Uni Aave Cake XVS, etc. Why don’t I participate in Hong Kong’s hot coins ACH Lina Kdy? Because they are not public chains, and many things have a short life cycle, and they are over after a wave of speculation. But public chains are different. They have always been hot and have always been about building ecosystems and market value.
9. The founder, team background, investment institution, and financing amount must be reliable. The founder should preferably be a famous person in the cryptocurrency circle, such as the Ethereum core team. For example, the founder of KAS is God Y, and the founder of ROSE is Professor Song. Having a well-known institution participate in the investment is equivalent to having an additional endorsement. The financing amount and project valuation are also very important. Good public chain projects are generally valued in the billions.
10. Those who violate the logic of value investment cannot participate. What does it mean to violate the logic of value investment? For example, AMPL is stable, and there was a deflationary token on arb before. The more you hold the token, the less you have. Whenever you see this, no matter how innovative it is, don't participate. In the end, it will definitely be a mess and you will be cut off completely. AMPL cut off many big Vs. If you think you are a natural fast runner, then ignore what I said.
11. Try not to participate in old coins unless there is a very strong new narrative. For example, RNDR CFX in this round are old coins, but their narratives are very good and perfectly fit the main theme of this new round of bull market. The former spans the hot spots of several tracks such as AI GPU NFT chain games AR VR metaverse, and it is difficult to be eliminated with basic settings. The latter is a better, faster and safer public chain, and it has the resource support of the national government behind it. In addition, Hong Kong will become the core of the new round of WEB3.0, making CFX the core target of Hong Kong's hot spots. Putting aside the Hong Kong hot spot, it is also a better public chain, and it also has its ecology and value.
12. Choose Longyi for the track, and try not to choose the latter. For the Hong Kong hotspot, I chose CFX, and the eco-coin above is the dex token PPI. The eco-coins on CFX are all incubated on PPI, so they are Longyi. So you can't go wrong by choosing Longyi.