Every year the market welcomes tens of hundreds of new listing projects, and during the uptrend season, there are thousands
As for the downtrend, there is low liquidity and fewer listed projects.
Investing in new projects has many big risks. If you don't know how to read tokenomics, how to price a project appropriately, what capitalization to buy, and when to invest, then prioritize the project. new.
Since 2023, many new projects have been listed including $ARB /2.3 times, $SUI /3 times, $EDU /4 times, $ARKM /2.5 times, $SEI /2.7 times,....
If you buy $BTC during this time, you may still make a profit
Buying old coins like $LINK will break even, buying old coins like $INJ will still make a profit
At the same time, why are some coins divided 3 or 4 times, while some projects keep their prices, while others can still go against the market?
It is a matter of LIQUIDITY, SUPPLY - DEMAND.
For new projects:
+Most of the resources are in the hands of the project developers (in the past, the foundation category was now changed to ecosystem => just unlock it and bring it to the release floor).
- Some airdrop projects have a total supply allocated to retails, but at the present time everyone is hungry for money, of course, if they receive the airdrop, they will release it.
- Capitalization valuation: Current projects listed at the beginning of the year seem very hyped, no products yet, new projects have only been built for a few months, fdv valuation is already 300-500M for tokens
As for Layer1, it is 3-5B when TVL <50M, the ecosystem is not outstanding compared to the old project.
When listing, the market price was 100 times higher than seed, x10 private, so it can be said that the price is too high compared to what new projects can do.
- Demand: is weakening, spot volume is the lowest since 2019 => leading to insufficient liquidity to maintain the price of new projects, while pressure is released every day.
=> At the present time, the pressure to release according to linear liquidity unlock is gradually weakening, so it is understandable that new coins are dumping stronger than the market.
So when should you invest in a new project?
- Reasonable valuation: New projects listed in 2019 cap 5-30M$
Currently new tokens have a reasonable capitalization valuation of 30-50M
Layer1 depending on the level of development, ecosystem, TVL, TRX, can be priced <300M
If you remember last year $OP after the airdrop and fud was taken away, the cap was still 70M => that's a good capitalization level to invest in a new project. By the beginning of the year 2023, including unlock, MC $OP will only be about 200M => then pump to peak 3.2, the cap will only be around 700M
But currently the price has been divided /2.6 times from the peak, and the capitalization is up to 1B (ie an increase of 30% compared to the peak capitalization at the beginning of the year).
The story considers risk and profit, new capitalization is profitable, to come up with an appropriate entry level
- New coins pump strongly after Halving:
