- This topic has 12 replies, 2 voices, and was last updated 8 months ago by aliensmadeus.
- Friday, April 1st, 2022 at 09:13 #206618the_far_yardParticipant
The title is self-explanatory. The chart is bottom heavy, and it is filled with failed coins/tokens. In 2021, a study by Gandal, Moore, Hamrick, Vasek (2021) titled “The rise and fall of cryptocurrency coins and tokens” found that ;
Based on data that spans more than 4 years (2018 – 2021); taking into context 725 tokens and 1082 coins. They found that;
1. 44% of publicly-traded coins were abandoned during that period.
2. 71% of abandoned coins are later resurrected, leaving 18% of coins to fail permanently.
3. Tokens experience abandonment less frequently, with only 7% abandonment and 5% permanent token abandonment at the end of the data.
This is quite similar to how start-ups in conventional businesses. You can find similar data on the ICO failure rates, which is at about 90%. If you’re investing in crypto, view it as a similar investment as you would do for a start-up. Crypto is an intangible asset, so it must be viewed more than just a coin, or a token, it’s your connection between your own values to what the company is promising.
So, question is- what can you check? Just like how you’d conduct a due diligence for businesses that you’re gonna spend your money on;
Aside from checking the whitepaper, and the profile of the development team to know who are behind the projects; if possible;
1. **Understand Market Sentiment:** [https://www.tradingview.com/markets/cryptocurrencies/prices-all/](https://www.tradingview.com/markets/cryptocurrencies/prices-all/)
The purpose of understanding market sentiment is understand how the market is either Strongly Selling/Strongly Buying. Some folks find it better to sell when the market is Strongly Buying to fetch a good return on spot trade, but everyone does have their own strategy. I’m keeping tabs on this one just for my amusement and taking notes how the market is reaction during this turbulence period.
2. **Understand The Job Done (Partial) Through GitHub (Some are outdated, be wary)**
[https://www.cryptomiso.com](https://www.cryptomiso.com/) / GitHub
A good project goes a long way, but not all work done are made equal. It’s important to have a project in the works. This is one of the possible indicators you could use to make sure the team you’re hodling for are doing something relevant to their promised road-map. However, it is important to highlight that some information are outdated, and it is best to do your own desktop research and triangulate your findings. Some of the work done on GitHub are not reflected here on CryptoMiso.
3. **Understand the Hypothetical Situation of (If X Coin is at Y Coin’s Market Cap…)**
This is suitable to understand the feasibility of a coin reaching X USD in value. The parabolic run certain coins had that saw its value increasing by tenfold or more last year drove the FOMO mentality. However, there are some realistic projects that does not have the branding nor marketing – and this site would help you to evaluate the possibility and scale of a coin based on their key indicators such as market cap, and coins circulations.
4. **Understand the Whale’s Concentration, and other indicators**
Amongst other indicators available on this website, I find the Whale’s concentration to be rather interesting. I was searching for a site that highlighted the ratio of transaction sizes, and this is as close as I could get so far. I am still looking for a site (Paid or Free) that would show the size of transactions through (Big, Median, Small) transaction sizes. There are other indicators that you might find useful here too, I bet.
[Above all else, good luck! When in doubt, read my flair.](https://preview.redd.it/0vo3yxwt4vq81.png?width=512&format=png&auto=webp&s=a94ef72170de5364a9848a48ca91dece554d926b)Friday, April 1st, 2022 at 09:13 #206619icest0
Market goes down, but post quality goes up. 💯Friday, April 1st, 2022 at 09:13 #206620FinishGloomy
5. Have insane luck, cause even cosmic entities can’t predict how the market will behaveFriday, April 1st, 2022 at 09:13 #206621Nostalg33k
I prefer to stay investing in BTC/ETH as 80% of my folio. I’m risk averse. Good luck out thereFriday, April 1st, 2022 at 09:13 #206622nanaymonaenae
At that market cap, manipulation has more effect than the actual fundamentals tbh.Friday, April 1st, 2022 at 09:13 #206623MortalPunchRO
My friend tries to invest in new coins/tokens, but he chooses them randomnly, only by looking at the name and market cap. You can guess what’s his success rate…Friday, April 1st, 2022 at 09:13 #206624toiletbrushes
All shitcoins without solid fundamentals and use cases will be gone in next bear market.Friday, April 1st, 2022 at 09:13 #206625CONSOLE_LOAD_LETTER
Like anything, including sports betting, having research and probabilities on your side only goes so far and it’s why bankroll management and risk dispersement to stay on top of variance is of the utmost importance. It is possible to do well, but people who don’t understand these concepts end up just gambling in the dark and ate basically like lottery players who do not have probabilities or an understanding of risk and variance. This sort of gambling can be a dangerous combination, especially when it’s disguised as “investment”.Friday, April 1st, 2022 at 09:13 #206626CymandeTV
This reference by itself just attract to read the whole post.Friday, April 1st, 2022 at 09:13 #206627OVERTIME003
Instructions unclear, I am now 10k indebtFriday, April 1st, 2022 at 09:13 #206628[deleted]
[deleted]Friday, April 1st, 2022 at 09:13 #206629Wabi-Sabibitch
Hope. Hope that I invest in uber rather than Jawbone.Friday, April 1st, 2022 at 09:13 #206630aliensmadeus
blockchain projects are basically a mix between internet companies from the 2000s and startups from the 2010s = DLT projects 2020s
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