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- Tips for Vetting Tokens
THE RIGHT TRACK
As we discussed in our last installment, once your filters are set within Dex Screener for tracking early-stage coins, you’ll begin seeing a list of tokens that meet your criteria. At this point, you need to vet the individual tokens to identify which ones are worthy of investment consideration.
Here’s how to vet tokens effectively:
Check Market Cap: Focus on market cap rather than price. The market cap offers a better indication of the token’s potential milestones, like reaching $100k or $1 million, which often drive buying and selling behavior. 💹
Ensure the Token is Fully Diluted: This ensures there won’t be inflationary pressures that can devalue the token after your purchase. A fully diluted token reduces the risk of sudden increases in circulating supply. 💡
Check Liquidity Lock: Verify that liquidity is locked, as indicated by a padlock icon with a green circle. This lock prevents developers from pulling liquidity and crashing the token's value, a common scam tactic. 🔒️
Analyze Volume Trends: Volume should be consistent or trending upward. A token with dwindling volume is less likely to have substantial price action, reducing your chances of making a profitable trade. 📊
Check Token Holders: Look at the distribution of token holders. If a small number of wallets hold large percentages of the supply, this increases the risk of a sudden sell-off that could crash the price. Look for well-distributed tokens, with no single wallet holding more than a few percent of the supply. ☑️
COIN SPOTLIGHT 📈
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As the crypto landscape continues to evolve, the quest for the best undervalued crypto to buy now remains a thrilling adventure. Here are a few key coins to watch:
Toncoin (TON) is a decentralized cryptocurrency that runs on the TON blockchain to facilitate transactions and power a number of network functions. With a power-packed technology stack at its core, Toncoin combines a bucket full of elements of blockchain, distributed ledger technology, and smart contracts. The goal is to harness its existing user base to turn it into a portal to Web3, enabling billions of transactions within a smooth and user-friendly Telegram architecture.
Ondo (ONDO) aims to bridge the gaps between traditional banking and blockchain technology and bring new ends to the DeFi space. The platform exposes the world of DeFi to a larger audience by enabling the production of risk-isolated, fixed-yield loans backed by yield-generating crypto assets through the use of a permissionless system. Ondo has launched products like OUSG, which offers on-chain exposure to US Treasury bonds, and USDY, a stablecoin substitute that combines the features of stability and yield.
Hedera (HBAR) is a cryptocurrency that seeks to be faster, more efficient, and more secure than traditional blockchain technology. Hedera uses Hashgraph technology, which allows it to process transactions super-fast and at a much lower cost. What allows Hedera to stand out is its innovative governance model, which blends a council of top organizations from different industries with decentralized governance.
Green Bitcoin (GBTC), which sold out of its first stage and raised over $250,000 in just one day, is still making waves. Since then, as more and more investors pour money into the predict-to-earn staking ecosystem—which provides long-term benefits for active participation—the fundraising effort has surpassed the $360,000 mark.
Jupiter (JUP) is one of the most advanced swap aggregation engines in the entire blockchain industry. Jupiter ensures user data security and privacy by using high-level encryption, allowing safe decentralized applications on public and private networks. Jupiter is expanding its DeFi portfolio to include a strong range of products such as perpetual trading, limit orders, and bridge comparators.
FINAL SPIN 📽️
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GOLDEN NUGGET 📚️
“Government 'help' to business is just as disastrous as government persecution... the only way a government can be of service to national prosperity is by keeping its hands off.” -- Ayn Rand
