Getting in early on investment is often one of the best ways to get your money to double, 10x, or even 100x.
Check out Ethereum. When the ICO first launched, you could snag a token for around $0.31…
If you bought in back then, your ROI today is somewhere around 3892x. And that’s in the middle of a bear market.
It’s the sort of gain that every investor crosses their fingers for. So how do you find the next ICO that will park a Lamborghini in the garage?
Despite what some of the projects might be saying to get you to buy in …nothing is certain. No analysis will tell you exactly what ICO is going to be a 10x or 100x machine.
While there’s no mathematical formula that will help you pick out your early retirement ticket, there are still some factors I’ve found that can help guide an ICO investment.
Look at these two examples of ICOs and their performance after launch…
Token Symbol: SAFEZONE
MC at Launch: 137k USD
ATH Multiplier: 14x
Token Symbol: STAK
MC at Launch: 120m
Dump: -60% (after listing)
I’m sure both projects had lots of promises and whitepapers you could have read through. But if you just invested blindly, how could you have predicted either outcome?
In all the data I’ve sifted through, there are two common non-standard indicators that precede tokens that ended up going parabolic in the charts. It’s not a crystal ball, but it can help to weed out the ICOs that might tank your portfolio instead of giving you blazing returns.
Let’s return to the two examples again. Aside from the obvious difference in chart movement, there’s another variable that is wildly different.
Can you see it? The market cap at launch is much smaller than the first token
…the one that made someone’s wallet a lot fatter.
But that could just be a random coincidence, you say…
Here is another pair of examples…
Token Symbol: LOTTO
MC at launch: 1.14m
ATH Multiplier: 8x
Token Symbol: 88T
MC at launch: 34.6m
Dump: -40% (after listing)
Once again, the difference in the market cap at launch is in the millions. Through all the high-return ICOs I looked through, this factor remains consistent.
Why is that?
Market cap at launch is calculated by launch price x total supply. If the market cap is smaller than average, that usually means there is less supply at a lower price. Therefore increased demand will make it easier for the price to experience a parabolic change and start giving 10x returns.
But that’s not the only indicator to look for. In order for the price to push upward, there needs to be a source for that demand and a community of investors that are going to be willing to keep buying in at the current price.
This is momentum, the second indicator to look for. Ethereum had an abundance of it. Thanks to all the promotion, growth, and community activity, the price has steadily skyrocketed since 2014.
That wouldn’t happen if investors were selling instead of buying.
Of course, there’s no equation that will spit you out some magical momentum value. Instead, I gauge a project’s momentum by observing its community.
Social media activity, promotional campaigns, and generally positive sentiment … can be great signs of momentum. It shows that there is a community of dedicated investors already on board, waiting to buy in when the price is low…
And buy in again and again…driving the price higher and higher.
When the buying power of the project’s community exceeds the market cap, that’s when you see the multiplying prices. Because there is always someone willing to buy at the current price and keep it increasing.
Keep in mind those two indicators, market cap at launch and momentum, and you might find some ICOs with real investment potential and you can disregard some that could flop.
And the community around it is buzzing. A large promotional campaign and an ambassador program were recently rolled out to promote their platform, which uses AI to analyze financial chart patterns and their potential impact on price.
Not only that, but the community has grown to 35K people on Telegram and 18K followers on Twitter.
Just like with the successful ICOs of the past, there are lots of people waiting to get on board. Right now, the token is only available in a private sale and the chances of being approved are pretty low. If you can get in at all, mentioning this blog as a reference could help your chances.
But overall, YPRED shares a lot of those same positive traits that the successful tokens in the examples above had. The difference is …this one hasn’t launched yet.
While predicting the market is impossible, there are still methods behind making a smarter investment. I’m not claiming that my ICO strategy is a perfect analysis. Or that it will guarantee your future million-dollar withdrawal.
These indicators are just a measure of potential. But the data backs it up.
So when a new project tells you that their token is guaranteed to blow up…don’t take their word for it. Check these two factors first. It could very well help you determine how likely your money will multiply.