Report: Unearthing crypto micro cap gems

Finding the next big cryptocurrency is every crypto investor’s dream. But as they say, you have to be in it to win it. The investors who are more likely to achieve that dream are the ones that are avidly researching and investing in altcoins. And not coins like Ether, XRP and Cardano.

We are talking about scratching around at the bottom of the barrel for projects which are busily getting on with it, don’t have the backing of big VCs and are making little noise as they bootstrap their crypto project.

Most of these projects end up as the living dead. They exist but they are for all intents and purposes dead. The founders gave up on their dream for various reasons. There are thousands of dead projects among the 10,000 odd listed cryptocurrencies.

Finding gems is that much more difficult as the number of projects has increased dramatically over the last six months and most of these new listings couldn’t exactly be described as investment grade. The memecoins and yield farming projects that litter the ecosystem has made it more difficult to pick possible winners.

Our work is also hindered by the many forums and influencers who claim to be a valuable source of crypto moonshots. The reality is somewhat different. Many influencers regurgitate the same old cryptocurrencies with no regard to the viability of the business model, tokenomics, number of users and whether the token has even a use. These are all basic considerations which are often neglected as influencers continue to bore us with the technology behind the platform which no one really understands most of all the influencer!

We all want to know only one thing. Is this frickin token going to make us any money?

Like investing in stocks, investing in cryptocurrencies is no different. You must assess the fundamentals before buying any investment. A singular focus on the technology behind how a website works is not the only consideration.

The crypto pickers biggest sin however is continuing to recommend grossly overvalued projects. Their inadequate assessments fail to take into account the fully diluted market value of a project which is the true measure of a project’s worth.

The moonshots that circulate the ecosystem are further sullied because usually the influencers who recommend them are paid a fee to do so. We are not saying there is not the odd gem among their many selections, there are, however sometimes the market is on their side which masks their true picking abilities.

With the resultant poor quality selections emanating from forums and influencers we decided to undertake our own bottom up research. That means we pulled up our sleeves and got our hands dirty to search for moonshots from the raw data on price listing platforms such as CoinMarketCap and Coin Gecko.

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We started by searching for projects which appeared to have viable business models with market caps of under $2 million, although there was one exception to this general rule.

We ruled out most projects with high maximum token circulations compared to their existing circulation. We also ruled out projects that hadn’t been posting to their social media channels recently.

We were surprised that from the mass of projects we examined that we only ended up with seven projects worth further consideration.

 

Here are the seven cryptocurrencies:

The Gems

These are our favourite projects which we believe offer potential and are worth further investigation.

DAPS Coin (DAPS)

DAPS is a privacy coin that aims to be the most private and secure privacy coin on the market. What makes DAPS special is that it claims to be the first to solve the “trust problem” for fully private chains with their own Proof of Audit algorithm which audits the chain for any abnormalities without compromising it’s anonymity features.

DAPS appears to have a robust platform having been audited by Red4Sec. It also has a healthy sized community of loyal supporters.

DAPS is a project that is clearly under the radar especially when you look at the valuation of some of its competitors, including TurtleCoin, which was a tip of ours a few months ago, which has a fully diluted valuation of $110 million compared to DAPS’ $2 million.

You can buy DAPS through Txbit and Hotbit.

Faceter (FACE)

In the next 3 years over 1 billion cameras will be installed across the globe, producing petabytes of video recordings daily. Faceter is designed to perform big data video analysis in real time — extracting faces, objects and events resulting in the transformation of these meaningless recordings into meaningful assets.

FACE token is the core of the decentralized network as a flexible, transparent, cross-border settlement mechanism for all participants. Starting with the payments they receive from customers who want to use Faceter for video analysis. Work of miners in their decentralized network is also paid by FACE.

Faceter has found a potentially lucrative niche which has so far remained unexplored particularly in the blockchain space. With a market cap of $2 million, fully diluted $3.75 million, this project is both undervalued and undiscovered. It is a project that deserves significantly more attention.

You can buy Faceter through Uniswap or HitBTC.

Libertas (LIBERTAS)

Libertas is a decentralized audio and podcast streaming service built on the Ethereum Blockchain.

The Libertas Project was born out of passion for free speech. It’s a way to allow people to have a platform without fear of being deleted, banned or deplatformed.

Libertas is building a platform dedicated to decentralising the spoken word, to allow freedom of speech to continue unhindered, to help those who have lost their voice reclaim it and to stop censorship from becoming a way of life.

Anyone will be able to upload their podcast and it cannot be taken down due to the immutable nature of the blockchain. Anyone from any country, including countries where freedom of speech is not protected and is not recognised as a right, will be able to have their voice heard.

Libertas is a commendable project. With big tech banning users for little or no reason but based on the whims of some discriminatory algorithm there is a need for a solution where users own their data and their content. There are many platforms emerging in the blockchain space to imitate Facebook and Twitter but nothing really in the podcast arena. Libertas’ platform is a little clunky at the moment but will only improve. Its market cap of $950,000 makes this a perfect time to buy into this promising project.

You can buy Libertas through Uniswap.

No Financial Advice

This report 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 a high risk, and you could lose 100% of your investment.