Author:
Ronin
Translation by: Deep Tide TechFlow
In the past 6 months, I have invested in 189 private/KOL rounds and have identified the best performing allocation strategies.
“Why am I reading this stuff!?”
Having a great product and a community built around a project is fantastic.
However, this does not guarantee further token growth, especially if the token economic model is designed for only 1-2 years in the future.
Firstly, fundamentals should address major pressure points, which is why I am sharing this information with you.
The best token economics I would invest in:
TGE unlocks 5-7%
Yes, we want to profit quickly, right now. But we also want to taste the profits early on at launch. Through this TGE, we can achieve:
Low token circulation (leaving ample room for rapid market cap growth)
Stable and growing token prices
Opportunity to offload during a bull market driven by investors
TGE with 11-15% circulating supply
The unlocking system is as follows:
11-15% at launch -> 20% at the end of the first year -> 30-35% at the end of the second year -> followed by linear unlocks for several years
Lock-up period of 3-6 months
Investing within a 12-month lock-up period is a very foolish idea, as our unlock will occur during a bear market. However, a 6-month lock-up period can help retail investors gain confidence in the token, leading to more purchases and additional liquidity.
If retail investors are confident, investors and market manipulators will be very cautious. This means we will steadily grow over several months or years, which is why we will sell our tokens at market peaks.
Team vesting period after investors (rule)
Linear vesting
Daily – very good
Monthly – good
Quarterly – not good
Best allocation
30-40% for community/ecosystem
15% for investors
15% for founders
25% for reserves
5% for advisors/KOL
5% for market makers and CEX
Ideally, the unlock percentages on the day of the TGE (Token Generation Event) should be 4% for investors/advisors, 5% for public sale, 6% for community/reserves, totaling 15%.
Conclusion
If you decide to invest in any altcoins, please check them against the standards I have described above.
If you decide to invest in any private/KOL rounds, also carefully examine the standards I have provided (but sometimes, you may find better and faster trades).
I hope that my losses over the past 6 months can teach some people, enabling you to gain greater profits in your investments.
Remember! If you trade – you are gambling.
If you analyze and trade based on news – you are a master.
Trading solely based on speculation, smart money movements, or technical analysis is a bad idea. You also need to follow fundamentals and current news (this is the only secret to success).
