Arthur Hayes has a net worth of $500mill+
He managed to invest millions in $GMX when it was at $17 (now at $50+).
He uses the following model to identify coins that have high potential.
You can copy Arthur’s model in 4 steps: 🧵👇
He managed to invest millions in $GMX when it was at $17 (now at $50+).
He uses the following model to identify coins that have high potential.
You can copy Arthur’s model in 4 steps: 🧵👇
This post is based on a podcast where he stated that he uses tools to search for protocols revenues/fees.
I believe there is a lot more to his model than what he revealed.
I’m going to combine my thoughts with what we know Arthur does, then I’ll explain how you can do it:
I believe there is a lot more to his model than what he revealed.
I’m going to combine my thoughts with what we know Arthur does, then I’ll explain how you can do it:
1: Introduction
We know Arthur utilises protocol revenues and compares it to their fully diluted valuation + market cap.
I'll teach you how to do this but that's all well and good but you’re not going to find the real gem he is.
I believe he is looking at what chains are having stable-coins bridged to it.
I also believe he is looking at wealth affects from ecosystems that have pumped.
Let me explain…
We know Arthur utilises protocol revenues and compares it to their fully diluted valuation + market cap.
I'll teach you how to do this but that's all well and good but you’re not going to find the real gem he is.
I believe he is looking at what chains are having stable-coins bridged to it.
I also believe he is looking at wealth affects from ecosystems that have pumped.
Let me explain…
2: Money flows
I believe Arthur looks at stable-coin flows to see what chain is having strong stablecoin inflows.
(At the time this was the case for Arbitrum)
You can do this by:
- Going to DeFiLlama
- Going to stables & clicking chains
- Seeing what chains have a lot of stables flowing to its ecosystem.
- Taking note of the top ones.
I believe Arthur looks at stable-coin flows to see what chain is having strong stablecoin inflows.
(At the time this was the case for Arbitrum)
You can do this by:
- Going to DeFiLlama
- Going to stables & clicking chains
- Seeing what chains have a lot of stables flowing to its ecosystem.
- Taking note of the top ones.
3: Wealth affects
Another method you can utilise is seeing what chain has had the largest pump.
The token holders are then wealthy and you can expect value to flow into the ecosystem.
You can do this by:
- Going to CoinGecko or CoinMarketCap
- Looking at the top gainers for chains that have ecosystems.
- Taking note if the ones that has performed the best.
Another method you can utilise is seeing what chain has had the largest pump.
The token holders are then wealthy and you can expect value to flow into the ecosystem.
You can do this by:
- Going to CoinGecko or CoinMarketCap
- Looking at the top gainers for chains that have ecosystems.
- Taking note if the ones that has performed the best.
4: Protocol revenue
Now you’ve identified where their is cash floating about you can place an educated gamble on a protocol that exists on that chain.
You do this by:
- Using DeFiLlama or TokenTerminal.
- Filtering to get look into the chains you’ve identified.
- Comparing their revenue/fdv or mcap.
- Finding protocols that are producing more revenue compared to their valuation.
- Comparing that to the other protocols on that chain.
- Betting that the ones with the most amount of revenue compared to their fdv/mcap outperform.
I know Arthur does that because he said on a podcast that he utilises tools such as TokenTerminal to compare protocols revenues & fees when making an investment.
Now you’ve identified where their is cash floating about you can place an educated gamble on a protocol that exists on that chain.
You do this by:
- Using DeFiLlama or TokenTerminal.
- Filtering to get look into the chains you’ve identified.
- Comparing their revenue/fdv or mcap.
- Finding protocols that are producing more revenue compared to their valuation.
- Comparing that to the other protocols on that chain.
- Betting that the ones with the most amount of revenue compared to their fdv/mcap outperform.
I know Arthur does that because he said on a podcast that he utilises tools such as TokenTerminal to compare protocols revenues & fees when making an investment.
5: Summary
- Track money flows
- Identify chains with highest inflows.
- Track top performing coins.
- Identify chains that have pumped.
- Look into the chains identified.
- Find the best performing protocols in regards to revenue / fdv or mcap.
- Track money flows
- Identify chains with highest inflows.
- Track top performing coins.
- Identify chains that have pumped.
- Look into the chains identified.
- Find the best performing protocols in regards to revenue / fdv or mcap.
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I digest hours of content to find value.
I then piece it all together in a manner that's easy to understand, this takes hours.
It takes only 0.23s to like the tagged post below (heck, you should probably bookmark it for future reference too):👇
I then piece it all together in a manner that's easy to understand, this takes hours.
It takes only 0.23s to like the tagged post below (heck, you should probably bookmark it for future reference too):👇
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