- What if I promised YOU a guaranteed way
to find 100X cryptos to invest in?
Pretty exciting, right?
Well, I'd be lying if I said that.
But what if I told you I've spent hours pouring
over coins that have 100Xed, searching for similarities, building
a research report, hitting dead ends, and finally finding
a token that just might blow up.
That's more believable
and exactly what I did.
So I started my searching, and right away,
I was hit with a kind of surprise.
See, 100Xs and cryptos are talked about a lot,
but aren't actually that common.
Most of the coins that have truly increased
that dramatically are coins you've likely heard of.
Out of the top 15 coins by market cap, most
have increased by 100 fold to their all time highs.
The only exception being Avax and CRO.
The FTT token did 102X, Cardano 179X, XRP 1300X.
And then we get a bit crazy.
With Ethereum going up 11,000 times,
Shiba increased 1 million fold.
And of course, Bitcoin increased 22 million X.
This blew my mind.
That means $1 invested into Bitcoin in the
beginning became worth 22 million at its peak.
By the way, this entire research report will be
available for members of Finova, formerly Patreon.
On Finova, you'll find reports like this, live coaching every day,
access to all my investments in real time, and
daily trade signals, all on a custom built platform.
Just make sure to grab your
spot linked in the description below.
Now, the tokens that I mentioned are well
known, but that wasn't always the case.
These guys used to just be your average nerd.
Now they're all nerds with a
billion dollars thanks to their projects.
What made them do so darn well?
What can can investor look out for?
Because there will surely be new tokens added to
the 100 X club a year from now.
And new billionaires made.
I began my digging, and the next
surprising piece was the start date
didn't seem to matter a whole lot.
Like, sure, Bitcoin and Ethereum have been around
a while, but Dogecoin came out in 2013.
That 8000X'd.
Shiba came out in 2020, that million X'd
BNB launched in 2020 and
is now one of the largest coins in the world.
XRP launched eight years earlier and is half the size.
This told me that a new
project can do well very quickly.
The next question is what type
of token does the best?
DeFi, gaming, adults-only tokens?
But looking at these 15, they all essentially fall into
three categories layer 1 and 2 coins, meaning they're blockchains
where apps can be built on top, exchange coins, meaning
they have utility on a crypto exchange.
And of course, you can't forget meme coins.
Now, meme coins aside, these
all have extremely high utility.
They all serve a purpose and solve problems.
And you'll see this come up time and time again.
And this is when I ran into
the next big twist: insider ownership.
I was curious to see if these
highly successful projects have equally large whales.
And they do.
The whale concentration of the 15 projects is quite high,
from around 30% for Solana to as high as the
mid 90% range for AVAX, CRO, and FTT.
The only exceptions here are Cardano and Bitcoin.
The big question is why is this and what
impact does that have on the coins price?
First, it's important to note that
But another big piece comes down to VC funding.
We can see, with the exception of Bitcoin
and a few others, every other project on
this list has this type of funding.
What this means is large investors bought a big chunk of
the total supply of the coin before it went public
to your average investor, that chunk
then turned into multibillion dollar holdings.
Now, I was sitting here thinking
of the secondary effects of this.
Crypto investors generally aren't fans
of VCs in projects.
However, we have to recognize
The first is credibility.
Big investors attached to things means
other investors will pile on.
Not just retail investors, but other VCs will
see like oh hey, they've been successful in
the past, let me invest as well.
But also the thing about these investors
is they don't trade as much.
They're more likely to hold on long term.
So for example, if 50% of the token supply is being
held long term by large investors, and there's simply less of
that, that will be traded in the open market, which can
push prices up higher if demand is consistent.
And that 50% number isn't unheard of, Solana sold 50%
of its supply to VCs for $370 million, AVAX, 42% for $290 million
BNB, 50% for $2 billion.
Others have lower funding amounts and percentages sold.
The memes and Bitcoin didn't dabble in presales at all.
Now, this has another interesting implication.
It appears that the presence of VC funding increases
the odds that a project does extremely well.
However, it isn't all perfect because the fact
that there are VCs in the first place
lowers the potential return for everyone else.
Let me explain what I mean.
If there's a token presale, this means when the
token is available to the general public, it will
already have a market cap in the millions, because
people already bought these tokens where a meme or
Bitcoins market cap essentially started at zero.
This means multiples will always be
lower for VC backed projects.
Put simply, it's easier to 100X something that has
$100 market cap than a 100 million dollar market cap.
But on the flip side, there's also higher risk as well.
There are far more failed meme
coins than coins backed by VCs.
What I'm saying is a VC backed
project will essentially never million X like Shiba.
But there are more precautions built in as well,
if you want to call them precautions.
So we know the
whether we like it or not.
And before we talk about a coin I have an eye
on, we need to go a bit deeper into how these
projects actually use their utility, because utility is just one part.
You could have the best technology in the world,
but if no one uses it, it's essentially worthless.
All 100 X cryptos have something in
common - an extremely active user base.
And that isn't just people following and engaging with the
project on Reddit, which is a good sign in itself.
It's more than that.
You want to look for a project
that people are actually exchanging value on.
Are they sending money for payments?
Are they using DeFi services?
Are they exchanging NFTs to the
network, whatever that might be,
and this all builds up and dramatically increases the odds
that a project will actually be successful.
As soon as people start using
it, you see those prices increase. We need to think of
crypto projects like regular businesses.
If people use their services, it's worth something.
PayPal would be worth very little if no one used it.
Same goes for crypto.
So what does the data say?
Unsurprisingly, the projects that do the
best have very active users.
The active address ratio is the percent of
users or addresses that used the chain in the last 24 hours.
We can see all of
these top chains are quite active, especially Solana and Litecoin.
I found that among the top 15 crypto projects,
the average daily active wallet addresses are 1.7%.
If we're thinking of blockchains like
businesses, then the average daily active
wallets are like repeat customers.
And we can go one step further and look at
are quite popular in terms of transactions.
When looking for the next 100 X,
I would highly recommend checking out those ratios.
Average daily active addresses and
transactions per active address.
The higher the better on both.
It means that people are using the projects and
they're actually coming back to use it again.
That's very important.
If you're looking to find this data,
it can be a lot of work.
You don't want to know how long this entire report
took to make, but data can be found through on
chain block explorers or data aggregator sites like Messari.
Now, which other things do 100X
projects tend to have in common?
We have some more obvious
things like developer activity.
One way to look at this is
GitHub commits, essentially changes to program files.
Here's the data from the
15 projects we've been discussing.
It's just important to note that this data is
not perfect, because not all commits have equal importance.
Some projects are insanely active, like Cardano.
Others won't have meaningful data
like Binance or Solana
What you really want to know is,
are people actively working on this thing?
For smaller projects, you'll likely need to
go into their Telegram or Discord groups.
There, you can actually talk to project representatives
who can give you more context on what
the team is actually up to.
One of my favorite things to look
for is a highly responsive team.
In my opinion, the least you can do is respond to
your investors, and I love when projects actually do that.
But beyond this, there are a few
nuanced things I noticed between these projects.
First, their mission is generally
clear and easy to understand.
If a project can't articulate what it's actually
attempting to do, they're going to lose investors.
Look for well defined goals
in any of your investments.
Second, they're attempting to solve big problems.
The most money will always go to the
projects that have the biggest ambitions, and of
course, the team to back up those ambitions.
And third, the community loves them.
Cryptos need strong goodwill from
the community to survive.
None of these projects are yet producing enough
value to justify them as value investments.
They're all speculation to some degree, and because
of that, you need a community that is
willing to stick things out long term.
Now, from here, I want to take these criteria and
look at a project I suspect to be undervalued - Ergo.
Starting off with the basics, there was no token
allocation to VCs or insiders in the beginning.
This is a layer 1 blockchain with a smart
team, strong community, and good tech behind it.
But they haven't been able to
break into the mainstream just yet.
In terms of active address ratio, ergo is above average
when compared to the top 15 cryptos we discussed.
And this is despite having a
far, far smaller market cap.
And Ergo's number of transactions per active address
is comparable to, but slightly lower than the
average of the 15 largest crypto tokens.
This is one of those projects who checks
just about every box, except they just need
a marketing push to really get things going
and grow their user base even further.
And the lack of VC funding, which is nice to see as
an investor, is also a bit of a double edged sword.
On the one hand, the project
is much more fair and decentralized.
But on the other hand, they don't have
the same amount of money that a VC
backed company gets to spend on things like
marketing, which can slow growth like we're seeing.
So in summary,
when looking for the next 100 X project.
I highly recommend keeping an eye out for projects.
Ideally layer 1s with huge goals and
a team to back those goals.
Small cryptos that are getting
attention from big investors.
An extremely active user base who
continues to use the platform. (repeat customers)
Active developers who actually deliver on their
promises and a strong marketing presence with
a core group of fans.
Nothing is guaranteed in crypto.
However, there are certain things that you can look
out for to help increase your odds of success.
I'd like to thank you so much for watching.