Report: Newbie Crypto Moonshots — Finding the next Dogecoin
Our thirst for moonshots has led us to explore every conceivable orifice in the crypto universe. One such orifice we have been investigating is the list of newly listed projects on the two main price tracking websites, CoinGecko and Coin Market Cap.
We had high hopes when we embarked on this journey but we were quickly disappointed. Unless you have the standards of a pubescent nymph there are slim pickings from this promising source.
The vast majority of new cryptos are metoo projects, including an abundance of memecoins, DeFi projects including numerous yield farmers and projects with no actual use cases whatsoever. Yes the standards have deteriorated to the point where you would need the patience of a Siberian tiger to sift through hundreds of coins to find a few hidden gems. And that is precisely what we did for a few solid days.
A couple of hundred cryptocurrencies quickly became 50 and those are the best of a bad bunch. From these we would suggest there are only a handful which are worth serious consideration. That small selection of potential moonshots we have analyzed in more detail at the end of this report.
Let’s set out the common theme we found among many of the cryptocurrencies during our search:
- Many projects have a huge supply of tokens. If you thought 1 billion was a large number what about 1 quadrillion? Is a quadrillion the new billion? Most of the new breed of memecoins seem to have fallen in love with this number. I for one am not a big fan, mainly because my calculator doesn’t have enough zeros to work out the fully diluted market cap.
- Memecoins with the word ‘moon’ in the title.
- Projects with no real world use cases.
- Projects with the word ‘safe’ in them, which are far from safe.
- Projects with massive market values with no fundamentals.
- Projects which are only a vision and consist of a cheap $100 website and a story which is as convincing as Jordan Belfort going straight.
- Projects that liberally use the term ‘deflationary’, a word more popular than the word ‘moon’.
- The majority of new coins are BEP-20 tokens — Binance Smart Chain.·
View our Monthly Moonshot Portfolio here. Twenty researched and rated cryptocurrencies that are both undervalued and undiscovered.
What was obvious was that the vast majority of projects we reviewed were startups, but not in the traditional sense. They consist of a badly designed website along with a market cap which would make a dot com pioneer blush.
As an investor we are lengthening our odds of making a return on our money by investing in such projects. There are only ever a minority of winners, but the percentage becomes increasingly smaller when you buy into projects which have no chance from the beginning. We would estimate that from the 100 odd projects we examined only 10 will end up making any type of impact and of those only two or three represent a decent investment opportunity.
Now let’s look at a few examples from our list:
Well the name says it all really.
Here is the a summary of the project from its website:
‘Losercoin is a project initiated by two poor guys from China, one is a father of two kids from a village, the other one is a coder living a miserable life by working 60 hours a week .
Two founders first heard about Bitcoin in 2017, and had lost a ton of money by trading cryptocurrencies. They started this project as an open journey and were fully prepared to lose everything’.
With only a basic website this ‘project’ has a market value of $36 million and in the last 24 hours saw $59 million of volume.
This is a popular memecoin. It currently consists of a website with no functionality and a market cap of $80 million.
This is one of those memecoins where the maximum number of tokens is 1 quadrillion or 1,000,000,000,000,000. The price is 0.0000001.
The description of the project is taken directly from their website:
‘SHIH TZU project is a meme based token that has determined to pursue NFT artwork focused on animal lover artist and advocate of animal rights including supporting animal shelter and animal with disability shelter.’.
You can probably guess the ticker… PUSSY. There is a picture of a cat on their website which goes on to tell anyone who may have lost their way and found themselves here rather than on Pornhub, ‘Do you like pussy? Pussy is the meme token to end all meme tokens. Much meow.’.
Although the website probably didn’t cost much more than $200 this project is not a total joke. It has a fully diluted market cap of $28 million and $7 million traded in just 24 hours.
This is another project with a total supply of 1 quadrillion tokens and a fully diluted market cap of $90 million.
This is the description of this project directly from the mouth of Dogefather himself:
‘Dogefather is a frictionless yield generation token hard-coded on its smart contract with a charity-based NFT marketplace coming soon. We built this token on Binance Smart Chain so people can buy Dogefather with cheaper gas fees compared to other tokens built on the Ethereum network.’.
People must find the prospect of this coin attractive as there was over $1.8 million of volume in the last 24 hours. Again this is another ‘project’ with no functioning platform and a cheap website.
All four of these tokens are issued on Binance Smart Chain.
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A lesson learnt from the world of penny stocks
There is a reason why some sharp stockbroker invented the penny stock. Obviously he or she didn’t actually invent the concept but they realized that by pricing a stock below $1 it was a great marketing gimmick. It was the equivalent of pricing a pair of socks at $9.99. We all know that it is one cent away from $10 but we convince ourselves we are getting a good deal. It works the same in cryptocurrency. It is called charm or psychological pricing.
It worked like a dream back in the days of the boiler rooms and it still works in the days of Wallstreetbets. The reality is whether a stock is priced at 0.00001 or $100 doesn’t matter, it all comes down to the number of shares in issue and the market cap. Some say it is easier for a share to go from $0.00001 to $0.00002 than from $1 to $2. That theory isn’t actually proven. Unfortunately this misnomer has found its way into the crypto investment world and especially into memecoin token pricing. Check out the tokenomics of most memecoins and see for yourself.
A few words about memecoins
It is hard to convince the memecoin lover that these are a poor investment when you read about the investor who from a $17 stake made $6.5 million by investing in the meme token shiba inu. There are many other stories like this. However it is a lottery. If you are intent on participating in this lottery our advice is only invest a small slither of your crypto portfolio and avoid the coins which have been priced with limited room for upside. Maybe the next memecoin phenomenon could be amongst our list below. We have selected one or two which could be candidates for the next Dogecoin.
So with that all said here is our list of recently listed cryptocurrencies.
A few words about our scoring
The scoring is based on fundamentals. They don’t take into account whether a particular project could go viral in the same way as Dogecoin, Safemoon et al although there is bound to be one such token lurking in this list. It is hard to score a project with simply a website and a $100 million market cap above 1…
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LlamaSwap is the newest yield farm and staking platform on BSC.
Fully Diluted Market Cap: $600,000
LAMA is only 2 months old and has amassed a healthy $1 million TVL. This compares to a very reasonable market cap of $600,000. Although DeFi and in particular yield farming is a competitive area, LAMA seems to be making good progress and is supported by a modest but growing community.
Ispolink is a novel cross-chain platform for developers powered by Binance Smart Chain and Polygon’s layer 2 scaling technology. Ispolink empowers blockchain firms to source seamlessly industry-leading talents with internal AI-powered algorithms.
Fully Diluted Market Cap: $5 million
This is probably one of the best projects amongst the new entrants that we researched. It boasts an experienced team, the backing of heavy weight investors and a very reasonable market cap. Having recently raised money through an IDO and through a private sale the project is on a sound financial footing to execute its plans.
PolyFi is a 3rd generation yield farming and AMM aggregator on Polygon Network.
Market Cap: $30,000
Fully Diluted Market Cap: $32,000
Yes, another yield and staking DeFi platform, but unlike the others this one has a ridiculously low market cap and over $500,000 of TVL. A long shot but unlike many other cryptocurrencies new to the market these guys have an operating platform and are gaining traction.
ZCore Finance (ZEFI)
ZCore Finance is a Binance Smart Chain yield farming bundled with an advanced crypto card with an integrated burning mechanism.
Fully Diluted Market Cap: $3 million
This project on the face of it looks very exciting. It has many facets to its business and numerous projects in the pipeline including a new crypto credit card with a ‘twist’. With over $7 million in TVL and a market value of just $3 million we believe this project is worth further investigation.
The next Dogecoin?
Below are a few potential candidates although remember these are total crapshoots.
Modest market cap for a memecoin of only $9 million, although it has only established a small community so far and has limited volume.
Market cap of $80m and with a decent sized community. With over $9 million of volume in the last 24 hours this could be interesting,
A modest market cap of $2.4 million, limited trading volume and with a tiny community this is a long shot of long shots.
Hummingbird compares itself to the recent meme star SHIB but apparently with better tokenomics. That translates to some 100 quadrillion tokens in circulation as compared to SHIB’s modest 1 quadrillion. The market cap is difficult to calculate — a few days ago it was at a lowly $10 million a steal for any self respecting meme trader.
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If you are on the hunt for memecoins with potential then searching through the many new projects hitting the market every day is your best bet. Although you have probably crossed swords with the guy or gal who just made $2 million dollars on a small investment in SafeMoon the odds are against you. There is still no reason why we can’t participate in this phenomenon as long as we know the risks and don’t bet the house or the wife.
We can increase our chances of success by carrying out some basic due diligence so that we quickly rule out the projects which are a complete hustle. Remember this party isn’t going to last. That means someone is going to be left holding a bunch of worthless tokens. There will be a few that will stay the course and end up having value simply by their huge network effect, others however will disappear. If you enter this crapshoot and place your bets on a few carefully selected memecoins you have a better chance than the sceptic sitting on the sidelines who secretly wants to get involved too.
Not Financial Advice
This article does not constitute financial advice or a recommendation to buy in any way. Always do your own research and never invest more than you can afford to lose. Investing in cryptocurrencies is high risk, and you could lose 100% of your investment. The article should be treated as supplementary information to add to your existing knowledge.