What is a "Crypto Gem"?
Cryptocurrency Gems are one of the most sought-after things in the blockchain sector. They aren't to be confused with literal cryptocurrency-related gems such as the $12,000,000 (paid in some undisclosed cryptocurrency) rare pear-shaped diamond that was sold by Sotheby's Auction house (Source 1).
The Crypto Gem craze has taken the internet by storm as people seek to become rich using relatively small amounts of money. A great example of this is the portfolio below (Source 2). Here the person turned 6-figures into millions of dollars using a variety of Crypto Gems. The right cryptocurrency can quickly multiply your money by 10x, 100x, or even 1000x. Not all of the investments were a success, which is why I think it is important for you to invest in a variety of promising projects. A loss or even series of losses can be quickly recovered by a cryptocurrency that does exceptionally well!
Overview of Crypto Gem Culture
Crypto Gems tend to have low market caps and are usually undervalued. The zealous culture surrounding Crypto Gems has helped to spawn terms and acronyms such as FOMO, ATH/ATL, REKT, and FUD (Source 3).
- FOMO - Fear of Missing Out, Crypto Gem enthusiasts do not want to miss out on the next profitable cryptocurrency investment. FOMO can cause people to anxiously miss out on sleep and life's important events all in the name of waiting for their Crypto Gem to give them a hefty profit. The term has garnered so much popularity and acceptance that it has been added to the Oxford English Dictionary.
- ATH/ATL - All-Time High/All-Time Low, a cryptocurrencies highest or lowest price ever.
- BTD/STH - Buy the Dip/Sell the High
- REKT - Another term for the word Wrecked, in the cryptocurrency space this means that a person lost a lot of money or was even scammed after investing in a crypto project. This term is understandable as to why it came about as around 80% of 2017 ICOs (Initial Coin Offerings) were a scam (Source 4).
- FUD - Fear, Uncertainty, and Doubt, a crypto gem connoisseur might feel these things for a variety of reasons. Perhaps the price of the cryptocurrency project has been in a bear market (declining price) or the smart contract code has not been made publically available for critique. Maybe the team has not kept their promises pertaining to the project or the overall community seems to be losing interest in the project. World Events can also cause FUD, consider recent events such as the Russian Invasion of Ukraine or China criminalizing cryptocurrency transactions. Events that had adverse (negative) impacts on the overall cryptocurrency market. Social trends or beliefs can cause FUD, beliefs that Bitcoin uses too much energy or that cryptocurrencies encourage illicit activities such as money laundering can all spell trouble for the aspiring Crypto Gem pundit (expert).
- HODL - You may think this is a misspelling at first, but this is typical crypto slang advising you to hold and have diamond hands (you don't sell the cryptocurrency early) as opposed to paper hands (you sell your cryptocurrency at the slightest gut feeling of FUD, at your own expense!).
- DYOR - Do your own Research, take these words to heart. You should always do your own research and make good judgments about whether you should invest in a particular cryptocurrency.
I believe that the FOMO fanatics often lose sleep to no avail, at least for American FOMO enthusiasts. Most S.&.P profits are made overnight and Bitcoin's price is oftentimes impacted by the overall market (Source 5). Bitcoin's price action oftentimes impacts the price of altcoins and Crypto Gems.
Catchphrases and slang usages of common words are also common in this space. Catchphrases such as "To the Moon" and "When Lambo" are all frequently used in the Crypto Gem Community (Image Below - Source 6).
When someone, in the Crypto Gem Community, calls you a Whale take that as a compliment. They are acknowledging that you have a large amount of capital (money) or you own a large portion of a cryptocurrency.
Exploring Crypto Gem Culture
Scammers, Investors, and honest Entrepreneurs alike want to see their cryptocurrency projects succeed. Oftentimes, this leads to massive amounts of spam and unsolicited digital cold approaches. "Advertising spend for digital currencies reached over $119 million in 2021, a 159% increase from 2020." (Source 7). Be sure to adhere to the old adage to Not Believe Everything you see on the Internet, so just because you see spam or an advertisement saying "This cryptocurrency will go to the moon!" you should DYOR!
Various perceptions of Crypto Gem Culture prevail throughout the industry. The beliefs that I will talk about are not representative of my own, I simply want to discuss some prevalent thoughts throughout the cryptocurrency world.
Stephen Diehl believes that "Crypto is essentially an economic cult that taps into very base human instincts of fear, greed, and tribalism". (Source 11). Stephen Diehl's belief on Crypto, in relation to fear and greed, may not be very far-fetched considering market sentiment is oftentimes judged by the Fear and Greed Index (Image Below - Source 12). People panic sell when they are fearful and buy when they are greedy. Legendary Mutli-Billionaire Investor Warren Buffet once said it is wise for investors to be "fearful when others are greedy, and greedy when others are fearful" (Source 13).
Stephen believes that Crypto is an economic cult because some cryptocurrency enthusiasts believe that cryptocurrency will create a perfect Utopia free of wealth inequality and corruption. All while creating an extreme amount of new wealth for us all to enjoy. Since Satoshi Nakamoto (a pseudonym for the person or group that invented Bitcoin) is not attributed to an actual known person or group, cryptocurrency can't really reach the full definition of being a cult. A cult must have some main illustrious primary figure, and the cryptocurrency industry lacks that. Stephen also believes that some cryptocurrency believers act in a cult-like fashion since they shun reasonable arguments against their utopian views.
Not every view of Crypto Culture is negative, some people have highly positive and reasonable views as to how cryptocurrency could help benefit humanity. Here is a rundown of the positive view of cryptocurrency and blockchain technology (Source 14).
- Risk of Fraud Reduced - When it comes to anything money-related, the topics of theft, fraud, and, deception become increasingly important. The blockchain, which is secured cryptographically, will electronically transfer and ensure all transactions are recorded so no fraud goes unnoted!
- Money Transfer Efficiency/Speed - On September 14th, 2021, A Bitcoin goldmine worth 2 Billion Dollars was moved with a fee of $0.78 (0.00001713 BTC). Try moving that much using traditional banking! Some traditional transfers take a week or longer to clear and be deposited.
- Strengthening E-commerce - Buying things online has become more and more popular in the past decade. Cryptocurrency transactions, for e-commerce, can reduce the risk of fraud, make permanent transactions (this may be good depending on the context!), and allow more payment options.
- Unite Research Efforts - Decentralizing important research, taking out the middle-men institutions, foundations, and corporations can allow everyone equal and equitable access to any research globally.
- Accountability - Blockchain technology can make all actions present, even non-financial ones, and publically available on the encrypted Blockchain. The Blockchain is a store of data ultimately, so it can store non-financial things!
- Making Foreign Transfers Better - Carrying Cash or money cards can put you at a higher risk of robbery, especially in dangerous areas. Cryptocurrency can be sent globally, without fees for crossing country borders, and used accordingly.
- Stability - Cryptocurrency can be used worldwide and has no exchange or interest rates. Local currencies that are subject to high inflation or general instability, can be replaced with cryptocurrency.
- More Control over your Money - If you are wary of Banks or Financial Institutions storing your money, then crypto may be just the right answer to your problem. Either that or you can store all your hard-earned cash under your mattress at home!
“Whereas most technologies tend to automate workers on the periphery doing menial tasks, blockchains automate away the center. Instead of putting the taxi driver out of a job, blockchain puts Uber out of a job and lets the taxi drivers work with the customer directly.” – Vitalik Buterin, co-founder of Ethereum (Source 18)
“I do think Bitcoin is the first [encrypted money] that has the potential to do something like change the world.” – Peter Thiel, co-founder of PayPal (Source 18)
Vitalik has a positive view of the cryptocurrency world, he believes that blockchain technology can get rid of some of the corporations that take our profits and create a peer-to-peer ecosystem that ensures more profits for the individual.
Adoption of cryptocurrency is growing at an extraordinary rate as public and institutional acceptance of crypto is growing. By the end of 2021 Crypto investment managers had $62 Billion in assets under management (Source 15). Global Adoption has skyrocketed up to over 880% from 2020 to 2021 (Source 16).
Crypto Gem Curation
A ridiculous amount of cryptocurrencies exist, so finding a Crypto Gem can be daunting. At the time of writing, 18,602 of them are listed on the coinmarketcap website (Source 8). This is why I suggest you use a resource or exchange that finds possible Crypto Gems for you. Kucoin, an exchange founded in 2017, has become one of the most popular cryptocurrency exchanges in the world. Kucoin takes the research burden and quality curation off your shoulders with their Kucoin Labs Incubator and research program that finds promising new cryptocurrency projects and even helps them develop to their full-blown potential. Kucoin has supported over 250 projects, so there is a multitude of aspiring Crypto Gems for you to discover and profit from (Source 9). These crypto projects are not your typical rug pulls, white-noise, or scams, but they are projects that have legitimate use cases.
In order to buy Crypto Gems at the lowest price possible, and hence get a higher return on investment, you will have to participate in angel investments, launchpads, or private investments. Oftentimes the best private investments are allocated to venture capital firms such as a16z, Blockchain capital, and Node Capital (to name a few). "Venture capital funding for blockchain startups reached $25.2 billion last year, up 713% from $3.1 billion in 2020" (Source 10). Angel Investments are oftentimes difficult to attain without having good social connections. Launchpads are highly competitive but oftentimes have extremely high returns on investment. Unless you have millions of dollars casually sitting around or high-quality connections with high-profile individuals in the crypto world, launchpads will be your best option. Here are some notable and reputable launchpads to get you started.
Launchpads (Source 19):
Kucoin Spotlight - Kucoin, as always, puts its emphasis on serving its users. Allocations are always evenly distributed, with equitable hard caps and KYC (Know-Your-Customer), and the projects are always backed up with proper due diligence from Kucoin Labs.
Seedify - Seedify is a seed-stage fund that is powered by a DAO (Decentralized Autonomous Organization). Feel free to submit your own blockchain project work to Seedify, to have it voted on by the community and you may be able to raise capital for your project!
GameFi - You will need to stake GameFi in order to receive an allocation to invest in its e-sports focused ecosystem. The amount of money you will need to invest depends on the price of the GameFi token.
Find Next Your Crypto Gem Now!
The longer you wait, the less potential ROI you are missing out on. There is no better place to find your next Crypto Gem than Kucoin, 1 in 4 crypto holders worldwide use Kucoin!
1) Genç, Ekin. “Sotheby’s Auctions Rare Diamond for $12 Million in Crypto.” Decrypt, 10 July 2021, https://decrypt.co/75673/sothebys-auctions-rare-diamond-for-12-million-in-crypto. Accessed 29 Mar. 2022.
2) “AK_Bull_Worm.” Twitter, Twitter, 2021, https://twitter.com/, https://twitter.com/AK_Bull_Worm/status/1391957751933267969?s=19.
3) “Crypto Slang Terms You Should Know Before Getting into Cryptos.” Cryptocoingossip, 20 Oct. 2020, https://ccoingossip.com/crypto-slang-terms/.
4) ·, Liam Andrew Wright, et al. “Satis Group Report: '78% of Icos Are Scams'.” CryptoSlate, 17 July 2018, https://cryptoslate.com/satis-group-report-78-of-icos-are-scams/.
5) Sommer, Jeff. “The Stock Market Works by Day, but It Loves the Night.” The New York Times, The New York Times, 2 Feb. 2018, https://www.nytimes.com/2018/02/02/your-money/stock-market-after-hours-trading.html.
6) CryptoMkg. “Bitcoin Moon Meme Gifs - Get the Best GIF on Giphy.” GIPHY, https://giphy.com/explore/bitcoin-moon-meme.
7) Wood, Chris. “Ad Spend for Cryptocurrencies Increases as Advertisers Educate Consumers.” MarTech, 6 Feb. 2022, https://martech.org/ad-spend-for-cryptocurrencies-increases-as-advertisers-educate-consumers/.