The ability to identify and participate in high-potential presales can be a game-changer for retail investors. This article aims to provide a comprehensive summary of one of the recent analyses on Twitter that retail investors can leverage, which even insiders may not possess.
In a recent tweet, the well-known trader and technical analysis expert, Crypto Nova (@CryptoGirlNova), shared some valuable insights on how to become successful in presales during the upcoming run. Here are the key takeaways:
What you'll learn 👉
Useful Resources
Crypto Nova recommends using @ICODrops and @CryptoRank_io as your go-to websites for finding upcoming high-potential presales. These platforms provide a wealth of information on upcoming high-potential presales, including details on where the sales will take place.
Basic Research
The importance of conducting thorough research cannot be overstated. Ensuring the authenticity of a project is crucial to avoid falling victim to scams. Launchpads can be particularly helpful in this regard, as they often have dedicated teams for due diligence.
A clean Twitter history and a consistent focus on product development, rather than incessant promotion of the initial DEX offering (IDO), are positive signs. A doxxed team and a live product or demo are additional bonuses that can boost investor confidence.
Demand
The most accurate indicator of profit is token demand. Look at the project’s socials and ensure it has plenty of organic likes, retweets, and comments versus their total amount of followers. Beware of disproportionate ratios, as they may indicate artificial engagement.
Capped Investment
Any presale that’s uncapped and free to participate for all should be avoided. The presale needs to be difficult to get in and have limited spots or a limited investment. The reasoning is simple: if everyone can invest as much as they want, who will buy your tokens at a higher price post-sale?
Moreover, uncapped presales can inflate the valuation, which is detrimental from an investor’s perspective. Remember, you are the investor, and your interests may not align with those of the team.
Project Valuation
A presale should offer tokens at a price lower than the expected market price. However, this is not always the case. It’s essential to check the initial market cap at launch. The lower the valuation, the better. A simple trick to calculate the initial market cap is to multiply the IDO price by the initial circulating supply.
Vesting
Vesting duration is one area where retail investors often have an edge over venture capitalists (VCs) or the project team. While large token unlocks in the future can be a concern, remember that team members and VCs usually have a vesting period of multiple years. As a retail investor, you can often exit your position long before these larger players start selling.
Launchpads
Launchpads, which gained popularity in 2021, offer an easy infrastructure for project founders and a large community for investors. While holding tokens to participate in sales may seem inconvenient, it can often work in your favor. The more popular the launchpad, the better the post-performance tends to be.
Conclusion
Crypto Nova concludes that presales are one of the best opportunities but there are a lot of dos and don’ts, and knowing how is key. Understanding these intricacies is key to unlocking their potential. As with all investments, due diligence, careful analysis, and a clear understanding of the market dynamics are essential to success.
