How to Evaluate Altcoins Like a Pro (PART 2)
(Missed Part 1? Check my previous post for the foundation)
Last day I covered success criteria and valuation metrics. Now here's how I evaluate the human and market dynamics that actually drive altcoin performance:
The People Behind the Project:
Team & Backing Power
For utility plays, distribution matters more than technology. Well-known founders and strategic backers create the network effects needed for adoption.
My research stack: Elfa AI tracks KOL and VC involvement. When top-tier VCs and influential voices align behind a project, it signals institutional confidence and marketing reach.
Real example: Early AI meta projects had backing from known crypto VCs plus endorsements from tech influencers like $ACT . That combination created the momentum for 10x+ runs.
Round Price Reality Check
I always research what early backers paid. Healthy projects show 3-7x multiples from seed to public pricing. Higher multiples need extraordinary justification.
Red flag: When public price is 20x+ above seed rounds, you're often buying the top of early investor exits.
Market Dynamics:
The Age Sweet Spot
Projects under 6 months old offer highest volatility and upside potential. No bagholders yet, maximum price discovery ahead.
This is why I keep close tabs on pre-launch opportunities like #DALPY - getting positioned before the crowd arrives can provide the best risk-adjusted returns.
Hard truth: Older projects rarely exceed previous ATHs without major fundamental upgrades. Fresh narratives beat recycled ones.
Momentum Fingerprints
I look for altcoins that outperform $BTC during market dips. True strength shows in aggressive pumps followed by shallow corrections that get bought immediately.
Pattern recognition: Strong alts hold key support levels while weak ones make new lows on every BTC hiccup.
Part 3 reveals my exact screening process and current opportunity sectors.
Which evaluation factor surprises you most?