Mr. Buzz, a partner with V3V Ventures, shared his thoughts on choosing promising tokens in his Telegram channel @buzz.
There’s a lot of hype surrounding new tokens. There’s a lot less hype around tokens that are 2-3 years old. But some of them still might rise significantly in price, and so investing in them could mean great ROI. The hard part is identifying “which ones are most likely to rise”.
Mr. Buzz shared some of the techniques that can help with that. What can make an “old token” rise in price? One option is a listing on a big exchange. Another is the end of the vesting period. The token creators could work with the “market makers” to ensure a pump, so the token price would be high when they would be free to sell it.
But how to understand whether a token is going to be listed on an exchange and whether its creators are going to work with market makers? Without insider information there’s no guaranteed way to know that, but history data can help. Analyzing it, we can notice patterns and make assumptions. If different projects work with the same VC funds, those funds may influence similar decisions, leading to similar results.
So V3V Ventures selected hundreds of projects and gathered info on them. What was the price at which VC funds entered? What’s the price now? How many followers does the project have on GitHub? On X? What exchanges is it listed on? Mr. Buzz shared the resulting spreadsheet for all the world to see.
As he notes, all this information does not lead to a sure-fire conclusions that will inevitably make you rich. But this information can help to make better assumptions. So while people are mostly trying to guess which new projects and tokens are worth investing in, someone might make a fortune investing in the old ones.
It’s worth noting that the Telegram channel @buzz where Mr. Buzz posted it is an investment itself. Telegram usernames are bought and sold as NFTs on Fragment.com website, so buying a four-letter one is a long-term investment: its value and price might rise over time. This is one more example of a non-obvious asset, hiding in plain sight while people are busy with more hyped-up ones.
