February 9, 2022
10,000x is unlikely. That takes $100 and makes it $1,000,000. The Winklevoss Twins, who invested in Bitcoin in 2013 “only” made 500x on their $11 million invested. You are looking for 1000x moonshots at a maximum. That still takes $1,000 and turns it into $1,000,000. If we have that target in mind, we can give you TWO ways to find such projects, starting with the most obvious one—the one that venture capitalist’s use.
1. They Come for You
To be upfront about it, the best way, which is also the way that venture capitalist firms get in so early on moonshots, is to have “deal flow.” This means that you have a reputation among connected people for being equitable and reasonable in your treatment of investment opportunities. Once that happens, people come to you. If you’re not a venture capitalist, then you can also become a crypto influencer. People also reach out to me and pitch their ideas for this reason. We could pack most of my days with these sessions, but as you can imagine, not all are worth the time involved.
How does the average person get that info then?
You’ll need to subscribe to a service that has a section that focuses on early launch moonshots.
It should also work on vetting those coins by some standard set of questions.
• Is there a proven use case for the project?
• How large is that user base and how certain can we be about that?
• How well prepared is the white paper? Look at Jack Dorsey’s TBDex white paper. This is the gold standard for how a white paper should look. It is technical, without getting bogged down in the mathematics of the project. And it is professionally presented.
• Can this project actually be realized? Why haven’t others done it?
• How does it deal with commonly known attacks, flaws, or problems?
• What’s the architecture of the project look like? It is simple enough? Does it make sense?
• Is the project just a matter of coding and launching a coin, or will it
additionally involve the manufacture of equipment or its installation?
• Even if a userbase exists, is that user base sophisticated enough to work with cryptocurrencies? Gamer’s adopting NFTs, for example, is easy, but the average public member isn’t there yet.
• What are the tokenomics of the project?
• Will an early investor face massive coin dilution?
• What will incentive long-term holding?
• What are the vesting periods?
• What are the number of GitHub lines for the project?
• How many active commits a month have they made?
• Is it coded well and how easy will it be for other developers to use that code?
• Is the company hitting its milestones?
• How is the publicity campaign faring?
In Sum: the best way is to be approached and then vet those proposals. Most people have neither the deal flow nor the time to put in the work that’s needed to vet the proposals. So, you’re probably best-off subscribing to a service that does that for you.
2. Pre-Launch IDOs
Notably, this isn’t available to investors in the United States.
• If you’re an accredited investor and you put your money in a hedge fund, and that fund is off-shore, and that fund has this as part of its strategy, then you can get access that way.
For the rest of you, if you want to try your luck as some Initial Decentralized Offerings, you can jump onto Star Terra.
To qualify, you’ll need to buy lots of STT coins and stake them. How many you stake will qualify you for a tier system. The higher your tier the more likely you’ll get to participate in the IDOs.
Whale class always qualifies, but you’ll need at least 100k of staked STT to qualify for that.
Then you have to buy the coins. Returns can be quite nice though (10x – 30x in a short time frame). Just be sure to check the vesting periods.
For lower returns, and Americans can do this, you can try Pylon. You deposit UST and you get it all back regardless of how well the coin does, but you’ll need to lock it up for 6 to 18 months (depending on what you choose). The better returns are about 300% notably.
3. The Realities of a Moonshot Portfolio
There are two hard truths you need to bear in mind with moonshot plays.
A. The first is that if you initiate a moonshot play and the market tanks soon after, your moonshot will die. Take the Jade Protocol. It launched in the NOV – DEC decline of cryptos and after a few days run-up, it’s done nothing but decline. The protocol is fair launch, has a Google dev and a Harvard professor. It has transitioned to a utility token with a high yield (it’s an OHM fork). No matter, it was killed by timing and may not come back.
B. The second hard truth is that even VC firms don’t tend to get 1000x returns in a year. If you don’t know, a16z is the leading VC crypto firm in the world. They have two 20x plays this year and only 1 loser. Absolutely amazing. They have 0 trades that gave them 100x and obviously 0 that gave them 1000x. The point is, finding 1000x coins is exceptionally hard even for firms packed with full-time analysts.
You can make a fortune with a few 10x to 20x plays. Then, with a portion of the proceeds.
Here’s that math.
• Start with 10k in ETH – Return 177,000.
• Put 50k into LUNA & 127k into 20% yield farming
-LUNA Return =$600,000
-Yield Farming Return = $25.4k
Total Return =752.4k = 75.2x in 2 years
If that strategy now gets just 2x (100%) in the next year, it would return 150.4x in 3 years
Notably, that strategy, does fine without any moonshots. It just trades L1 coins and yield farms.
If you can wait for about 3 years and plan on making more than just 1 trade, then moonshot returns are quite achievable.
Bezel Blockchain Management is specialized in identifying good opportunities raising at the blockchain environment and we are also building our very own ecosystem to stimulate our clients to participate on this revolution, in a safe and profitable way. Soon we will be launching our NFT hosting website that will expose a whole new path for blockchain enthusiast to be part of our projects in many different ways.