Author: Ronin
Translation: TechFlow
Over the past 6 months, I have invested in 189 private rounds/KOLs and have discovered the best allocation strategies for performance.
“Ugh, why am I reading this stuff!?”
Having a great product and a community built around the project is fantastic. But this does not guarantee further growth of the token, especially if the token’s economic model is only designed for the next 1-2 years.
First and foremost, fundamentals should address major pressures, which is why I am sharing this information with you.
The best token economics that I would invest in has a TGE unlock of 5-7%.
Yes, we want to make profits quickly, right now. But we also want to taste the profits early on at launch. Through this type of TGE, we can achieve: low token circulation (leaving plenty of room for rapid market cap growth), stable and growing token prices, and the opportunity to cash out from investor-driven momentum in a bull market. At TGE, there is an 11-15% circulating supply unlock.
The unlocking system is as follows:
Start: 11-15% –> End of the first year: 20% –> End of the second year: 30-35% –> Then, a linear unlock continues for several years with a lock-up period of 3-6 months.
Investing during a 12-month lock-up period is a very foolish idea because our unlock will occur in a bear market. However, a 6-month lock-up period can help retail investors gain more confidence in the token, leading to more purchases and additional liquidity.
If retail investors have confidence, investors and market manipulators will be very cautious. This means that we will steadily grow over several months or years, which is why we will sell our tokens at market tops. The team’s vesting period is after investors (rule) Linear vesting Daily – very good Monthly – good Quarterly – not good Best allocation: 30-40% for the community/ecosystem, 15% for investors, 15% for founders, 25% for reserves, 5% for advisors/KOLs, and 5% for market makers and CEX.
Ideally, the unlock ratio on the day of a TGE should be 4% for investors/advisors, 5% for public sales, and 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 choose to invest in any private rounds/KOLs, also carefully review the standards I have provided (but sometimes, you can look for better and faster trades).
I hope that my losses over the past 6 months can teach some people and help you 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 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).
