Based on my observations, each bull market will give birth to a few or more cryptocurrencies with over a hundredfold increase. Through retrospective summarization, there are several key characteristics that need to be present.
First: It must be a new coin issued in 2022-2023. Many people do not understand why new coins and not old ones. There is game theory involved; for an old project that has gone through a bull market and then a bear market, the confidence and faith of holders are severely damaged after a slow bear trajectory. From the perspective of the project team, raising funds for an old project is far more costly than issuing a new project, and new projects have new narrative logic; it is easier to raise without being stuck in losses, so choosing new coins increases the probability of success. Additionally, it needs to have experienced a long bottoming period with signs of accumulating capital at the bottom monthly level.
Second: It should have infinite imaginative potential, ideally changing the production and lifestyle of all humanity; disruptive innovation in technology revolution. Only such projects can gather strong consensus. For example, OpenAI's ChatGPT launched in 2023 brought disruptive innovations in artificial intelligence applications. In short, the capital support of top global investment institutions is required; institutions have better comprehensive judgment capabilities regarding technological revolutions than ordinary people and can more easily form a herd effect.
Third: A market capitalization of less than 100 million USD is most suitable. A small market cap is a prerequisite; those with a market cap above 500 million USD have a very low probability. Additionally, the fundamentals must have core well-known institutional investment backgrounds and top-tier IP traffic empowerment (refer to Elon Musk empowering DOGE).
Fourth: Timing is very important. First, a good environment is needed, preferably during the late bear market or early bull market. To determine whether it is a bear or early bull market, the Federal Reserve's monetary policy serves as a standard reference. If interest rate hikes are nearing an end, the market may reach the bottom and start a new round of trends. Currently, the Federal Reserve's interest rates have reached high levels, and stopping rate hikes is imminent. As for when to enter the rate-cutting cycle, it mainly depends on whether inflation decreases to 2%. For medium to long-term layout of hundredfold cryptocurrencies, the timing should be at the end of 2023.
Fifth: During this period, focus on high market attention projects with well-known institutional investments, such as Ethereum's Layer 2 networks, which are the main investment focus of major institutions. Other sectors include AI, L2/metaverse applications, gaming, DeFi, and the Hong Kong sector. Select ten projects for in-depth exploration, organize the founding teams, and analyze which investment institutions are behind them, as well as how the project applies in the supply chain. It is best to experience the project process yourself. Generally, good projects have interactive airdrop rewards.
Sixth: As the saying goes, good projects inherently attract attention and are sought after by major exchanges for listings. Therefore, we need to see if the project is listed on several of the largest global exchanges, including Binance, Coinbase, OKX, etc.; exchanges are the entry point for traffic; those not listed should not be considered. Because if even more professional institutions have not discovered good projects, we have no need to waste time. As for shanzhai projects, especially those from domestic sources, there are too many scams in the crypto space that collect intelligence taxes. Projects are often packaged beautifully, making them hard to defend against. Many people cannot distinguish; ordinary individuals should conduct background research on the founding teams and investment institutions via chatgpt software before considering whether to invest and how much.
Seventh: In the crypto space, the iron rule of getting rich is to invest in new rather than old projects. Essentially, it is about new storylines and new narratives; the early creative synergy of the team is also at its best. The shortcomings of the projects have not yet been exposed, making it easier to open people's imaginations. Of course, not all old projects are without potential; it is just that the probability is very low, just like in business.
After selecting projects with a hundredfold potential, it is best to establish a self-selected pool of no more than 10. Note that this is not about immediately acting and buying in full, but rather observing market sentiment and waiting for price adjustments to buy in multiple times. Remember not to leave it on exchanges as you won't be able to hold it. Once purchased, transfer it to your own wallet. It is best if this wallet is not frequently used for better management and to reduce the risk of theft. If you can do the above, you have basically experienced more than two rounds of bull and bear markets in the crypto space; seasoned investors understand the author's heartfelt message. Those who have made significant profits in the crypto space, millions or more, do not need to check various news every day; they can do their jobs, travel, and not even need to watch the markets. In a bear market, dollar-cost averaging into hundredfold potential assets is advisable; in a bull market, just sell. People say holding assets is harder than being single; the difficulty lies in our heightened attention, which makes it easier to miss out on hundredfold or thousandfold returns.
From the perspective of market capitalization ranking, in March 2020, among the top 600 cryptocurrencies by market cap, 61 hundredfold cryptocurrencies were born (secondary market).
Among the top 100 cryptocurrencies by market capitalization, there are 11 hundredfold coins, accounting for 18%, which are #BNB, #LINK, #ADA, #DOGE, #VET, #SNX, #SOL, #THETA, #HOT, #ENJ, #LUNA. Old coins have new narratives, which is also a new growth explosion point. For example, BNB and BSC chain have detached from the single exchange token attribute. Among cryptocurrencies ranked 100-300 by market cap, 21 hundredfold coins were born, accounting for 34.4%. Among cryptocurrencies ranked 300-600 by market cap, 22 were born, accounting for 36%.
Based on the above judgments, the cryptocurrencies that meet the criteria are few and far between. A few examples to focus on include FET, SSV, RNDR, CFX, etc. Observe and choose the timing; those who are not good at timing should like, save, and follow.
