How I Find Good Crypto Projects EARLY

Summary

In this video, the speaker outlines a detailed, step-by-step approach to discovering and investing in high-potential cryptocurrency projects. They discuss the importance of identifying strong narratives, assessing market metrics like market cap and liquidity, and filtering out bad projects through careful research. Emphasizing the significance of real tech behind the projects, the speaker also highlights how to spot catalysts that could drive future growth. Ultimately, the speaker encourages viewers to do their own research and avoid blindly following hype during crypto bull runs.

Takeaways

• 😀 It's important to have a methodology when assessing new crypto projects, especially during volatile markets.
• 😀 Identifying the right narratives, like AI, can significantly influence the popularity and growth potential of a crypto project.
• 😀 AI is expected to be a major narrative in the crypto space as more retail investors seek exposure to emerging AI-related projects.
• 😀 When evaluating crypto projects, it's essential to assess whether the technology is valuable or just vaporware.
• 😀 Checking the activity and updates on platforms like Twitter and Discord is crucial to determine whether the project is still actively being developed.
• 😀 Regular releases and significant updates every couple of months indicate a more bullish project, while stagnation is a red flag.
• 😀 It's vital to consider whether influencers and the broader crypto community will support a project during a bull run.
• 😀 Viral narratives are key in driving widespread excitement in crypto, especially simple stories that are easy to understand and share.
• 😀 A strong crypto project often taps into easily explainable narratives, like the success of well-known individuals (e.g., Coinbase’s Brian Armstrong co-founding Research Coin).
• 😀 Don't forget to do your own research and make informed investment decisions rather than blindly following popular trends or narratives.

Q & A

Why is it important for crypto projects to tap into popular narratives?

Tapping into popular narratives, like the AI boom, helps attract a larger audience and increases the chances of retail investors discovering the project. When people connect with a trending theme, they are more likely to invest, thinking they are getting exposure to a booming market.

What role does the team's activity and engagement play in evaluating a crypto project?

The activity and engagement of the project's team, as shown through platforms like Twitter and Discord, are important indicators of the project's viability. If a team stops being active or fails to release regular updates, it could signal that the project is no longer being actively developed or supported.

How does the narrative of a project affect its viral potential during a crypto bull run?

A simple and easy-to-understand narrative is crucial for a project's viral potential. During a bull run, many individuals who are not traditional investors may get involved, and they often share projects they find easy to explain. Projects with straightforward, shareable stories, such as those related to well-known figures or simple concepts, are more likely to go viral.

What is the risk of investing in crypto projects that lack substantial technology?

Projects that lack substantial technology and are merely selling ideas or marketing buzz are considered vaporware. Investing in these projects can be risky as they may not offer real value, leading to potential financial losses when the market realizes the tech doesn't meet expectations.

Why is it crucial to check the upcoming releases or milestones of a crypto project?

Checking the upcoming releases or milestones helps assess whether a project is consistently developing and making progress. Regular updates and major milestones suggest that the team is dedicated to ongoing development, which is a positive sign for long-term viability.

What does the speaker mean by 'vaporware' in the context of crypto projects?

In this context, 'vaporware' refers to crypto projects that make bold promises but fail to deliver any meaningful technology or product. These projects often rely on marketing and hype rather than actual innovation or utility, making them a risky investment.

How does the AI narrative influence investor behavior in crypto markets?

The AI narrative attracts investors who may have missed out on early-stage investments in large AI companies like Nvidia. These investors are eager to find smaller, more affordable crypto projects related to AI, hoping for a chance to capitalize on the booming AI sector.

What kind of projects does the speaker believe will be popular among influencers during a bull run?

The speaker believes that projects with easy-to-explain narratives, such as those with well-known figures or simple, relatable concepts, will be popular among influencers. These are the types of projects that will generate buzz and attract widespread attention during a bull run.

How does the speaker differentiate between projects with valuable tech and those with vaporware?

The speaker looks at whether the project has actual, functioning technology that adds value to the space or if it simply relies on marketing hype. A project with valuable tech has real potential for growth, while vaporware projects lack substance and are unlikely to succeed in the long term.

Why does the speaker emphasize doing your own research before investing in crypto projects?

The speaker stresses doing your own research because every investor's situation is unique. While the insights shared in the video are based on personal experience, they cannot account for individual investment strategies or setups. Independent research ensures that investors make informed decisions based on their own circumstances.