1) ⚠️ FA CLASSES PART 3 ⚠️
As part of our weekly FA classes, we'll start with the 3th step of researching a cryptocurrency:
''Analysing the market cap of a crypto project''
Case-study and homework provided down below 🧵 👇
➡️ You will have 2 days to participate ⏰
As part of our weekly FA classes, we'll start with the 3th step of researching a cryptocurrency:
''Analysing the market cap of a crypto project''
Case-study and homework provided down below 🧵 👇
➡️ You will have 2 days to participate ⏰
2) ⭐ Case-study
A few days ago you discovered $MLT after many positive recommendations on crypto twitter.
As the good investor you are, you've analysed the general concept and the team behind #MLT first.
➡️ Want to know how to analyse the team?
Read up on the 2nd class 👇
A few days ago you discovered $MLT after many positive recommendations on crypto twitter.
As the good investor you are, you've analysed the general concept and the team behind #MLT first.
➡️ Want to know how to analyse the team?
Read up on the 2nd class 👇
3) After being sold on the general idea behind $MLT and see the team qualified enough to make this a success you move on to the next step.
⏩ Is the project still a good investment?
We aren't building the product. We aren't sponsoring the product.
We are INVESTING into it.
⏩ Is the project still a good investment?
We aren't building the product. We aren't sponsoring the product.
We are INVESTING into it.
4) As any good investor we buy undervalued projects and sell overvalued ones.
Would you still buy apple, Amazon or Google today?
There's no doubt these companies are legends in what they do and offer.
But their stocks already have the price to show for it.
Would you still buy apple, Amazon or Google today?
There's no doubt these companies are legends in what they do and offer.
But their stocks already have the price to show for it.
5) They have already reached mass-adoption.
You are not buying anything at an undervalued price anymore.
I like many cryptocurrencies, but I don't like all of their prices.
⏩ Let's carry on.
The only way to determine a cryptocurrency's value is their market cap.
You are not buying anything at an undervalued price anymore.
I like many cryptocurrencies, but I don't like all of their prices.
⏩ Let's carry on.
The only way to determine a cryptocurrency's value is their market cap.
6) This is the total value of all tokens in circulation multiplied by today's price of 1 token.
Is your cryptocurrency trading at 0.1$ and are there currently 100 million tokens on the market?
⏩ The market cap is 10 million (0.01 * 100 million).
Where do we find this info?
Is your cryptocurrency trading at 0.1$ and are there currently 100 million tokens on the market?
⏩ The market cap is 10 million (0.01 * 100 million).
Where do we find this info?
7) We visit a cryptocurrency database.
The best one by far and the one I've used for years is @coingecko.
You can find ANY cryptocurrency there.
1) Click on the search button at the top of the page.
2) Type in $MLT.
3) Click on the right one in the list.
The best one by far and the one I've used for years is @coingecko.
You can find ANY cryptocurrency there.
1) Click on the search button at the top of the page.
2) Type in $MLT.
3) Click on the right one in the list.
8) There are 2 things we will be looking at.
1) Market cap
2) Fully diluted value
➡️ The market cap is today's valuation.
➡️ The fully diluted market cap is the futures valuation at today's price.
The closer these 2 numbers are to each other the better.
1) Market cap
2) Fully diluted value
➡️ The market cap is today's valuation.
➡️ The fully diluted market cap is the futures valuation at today's price.
The closer these 2 numbers are to each other the better.
9) Not all tokens are already released on the market.
Some are still locked and waiting to be released for the team, VCs or marketing.
⏩ DO NOT disregard fully diluted valuation.
Market cap is what's important today but locked tokens will be coming for you eventually.
Some are still locked and waiting to be released for the team, VCs or marketing.
⏩ DO NOT disregard fully diluted valuation.
Market cap is what's important today but locked tokens will be coming for you eventually.
10) Take into account that a market cap of 1 million and a fully diluted valuation of 10 million can still be considered low.
Even though the fully diluted valuation is 10x larger than the market cap which is generally HUGE and a bad sign.
Even though the fully diluted valuation is 10x larger than the market cap which is generally HUGE and a bad sign.
11) A market cap of 100 million and a fully diluted valuation of 1 billion is an entire different matter of course.
$MLT has a market cap of 21 million and a fully diluted valuation of 30 million.
If you've experience in these markets you know this really is not a lot.
$MLT has a market cap of 21 million and a fully diluted valuation of 30 million.
If you've experience in these markets you know this really is not a lot.
12) Do you lack experience?
Don't worry I got you ↓
When you search for $mlt on coingecko you can see a number next to its name.
⏩ #770
This means #mlt is ranked 770 in terms of valuation.
There are 769 more expensive cryptocurrencies by market cap.
Don't worry I got you ↓
When you search for $mlt on coingecko you can see a number next to its name.
⏩ #770
This means #mlt is ranked 770 in terms of valuation.
There are 769 more expensive cryptocurrencies by market cap.
13) While this doesn't say everything it does give you a general idea that there is a lot of room for growth and it has not reached global numbers yet.
Conclusion:
$MLT has been approved in our first 3 "FA analysis" steps.
We move on to step 4.
➡️ Our next FA class soon!
Conclusion:
$MLT has been approved in our first 3 "FA analysis" steps.
We move on to step 4.
➡️ Our next FA class soon!
14) ⭐ Homework
Feeling confident? Now it's YOUR turn.
→ @AxieInfinity - $AXS
→ @FerrumNetwork - $FRM
1) You deem both worthy for further investigation.
2) You do a market cap check.
3) What are your findings? Do you consider them undervalued or not?
Comment below👇
Feeling confident? Now it's YOUR turn.
→ @AxieInfinity - $AXS
→ @FerrumNetwork - $FRM
1) You deem both worthy for further investigation.
2) You do a market cap check.
3) What are your findings? Do you consider them undervalued or not?
Comment below👇
15) If you like these classes make sure to put on your notifications for the next upcoming ''FA SERIES''.
➡️ "Know-how and analysis on tokenomics is next"
Stay tuned ⏰
Nova out 💟
➡️ "Know-how and analysis on tokenomics is next"
Stay tuned ⏰
Nova out 💟
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