The content is a transcript of a live stream where the speaker discusses various topics related to cryptocurrency. They address some questions from viewers, including a review of a specific project called Ergo and whether it is a good idea to invest in niche areas like crypto gaming. The speaker emphasizes the importance of diversifying one’s portfolio and not being too focused on a single narrative. They also compare the potential returns of two cryptocurrencies, Quant and Ethereum, and explain why they would choose Quant. Additionally, they discuss the basics of “gem hunting” in cryptocurrency, including tokenomics (circulating supply and holders) as important factors to consider when analyzing a project.
Foreign Hello everyone and welcome back to another live stream on my channel.
Addressed Live Stream
I know we went live before but today is the addressed live stream that I am going to do at 9pm UAE time every single Saturday, so I do want to address a few things before we get straight into this live.
I did say I’ll answer the first three questions because I saw a lot of you guys down below asking some questions, so I feel inclined now to answer those questions before we get into the gem hunting basics, which is very important in crypto, some gem reviews, and three narratives you must have in your portfolio.
So guys, let’s get straight into this today. I can see a question here which I do assume is the first question we had on this live stream, which is reviewing Ergo. Now, I pulled this up before while I was watching the comments and had a look at this straight up, and something I found very interesting which made me potentially bullish on this project, guys, is the Flux partnership. Now, I’m very bullish on Flux. I like this idea of a hybrid blockchain between proof of work and proof of stake, and the fact that Ergo is partnered with Flux makes me potentially bullish on this project. Now, I haven’t done my research into this project, do your own due diligence, but solely based off that, I’ll be looking to do more research and invest in projects before forming a conclusion. So, bit, I’m going to tell you right now, I’m potentially bullish on this project. However, I will do more research. Hit me up with a message on Telegram and I’ll look further into this project.
Diversify Your Portfolio
Now, I think the second question on the list was this one right here. “Hello Seth, I know that it’s always good to diversify your portfolio, but do you think it’s right to buy coins from a niche that you understand, like crypto gaming?” Now, this is a very good question. I get this question a lot in crypto, and the unfortunate answer, my friend, is don’t marry projects, don’t marry narratives. It doesn’t matter what you know in crypto. The crypto market doesn’t care what you know. They don’t care what you know. The crypto market will perform based on what’s the current narrative and where the money’s flowing. It doesn’t care what you know and what you like. So, what I want you to do, my friend, in crypto, is to remove all your biases and invest into projects and narratives which will promulgate the most lucrative returns. So, for example, last bull run it was gaming projects, it was metaverse projects. This bull run, most likely, it will be AI, it will be decentralized storage. So even though you are bullish on gaming, I’m not saying not to have any gaming projects, but just remember, you shouldn’t only have gaming projects because that is not that strong of a narrative. And I know that you said that you understand gaming, that it is good to diversify, but you know why I say that? It is because what if gaming doesn’t perform that well? What if decentralized storage doesn’t perform that well? If your whole portfolio is gaming and actually gaming doesn’t do that well in crypto anymore, then your whole portfolio is limited in the amount of returns you can make. Why would you want that? You shouldn’t want that. You want to diversify so you can accommodate as many different narratives as possible. So that gives you the best chance in order to make a lot of money in crypto.
Quant vs Ethereum
The last question we got on this list, guys, before we get into gem hunting basics and then we’ll get on to the reviews, is if you only have to choose between Quant and Ethereum, which one will you invest into? Now, I find this a very funny question because you may be surprised at the answer, guys, but I’m gonna go with Quant. Now, at the end of the day, Quant is an ISO-compliant token. It’s not a blockchain. For those of you guys who don’t know what Quant is, it’s more of a middleware pioneering interoperability. They aim to be a very interoperable platform connecting all the major DLTs together in a variety of different ways to be applied in real life because it is ISO-compliant. Now, I’m very bullish on Quant, and personally, I’m expecting Quant to do more than a 10x. And because of that fact, I think Quant could comfortably 20x my money. Ethereum most likely, guys, is going to be the top [of the market], being a 10x. So, I’m going to go for the most of the returns, which is where Quant is. That’s why I’m personally choosing Quant over Ethereum, even though Quant will be more risky.
Gem Hunting Basics
Guys, I know there are a lot of questions down below. I will be addressing them in a moment. But firstly, guys, I want to talk about gem hunting basics because a lot of you guys put loads of different projects down below, but you need to look at the basics before you even put the project in the chat, guys. Because a lot of these things are fundamentally important when analyzing a crypto project for the next bull run. So, let’s get straight into this, guys. Here is the basic gem hunting criteria that I created or whipped up right before this live stream.
Number one is tokonomics. We say tokenomics all the time, but what do we mean? Well, think of tokenomics as everything to do with the tokens, literally everything – the circulating supply, holders, and disparities. Now, when we look for tokenomics, when I say, “Oh yeah, this project has good tokenomics,” what do I mean by that? Well, the first thing I mean, guys, is the circulating supply. Now, the circulating supply is very important in crypto. If you have a very low circulating supply, that means there’s going to be very high inflation with that project. Think of it this way. If you dump 90% of tokens into the market, the price is going to drop because every token you add in, the price goes down because those tokens they already hold are worth less. Think about this. The project could, anytime they wanted to – technically, you have to trust the project – but anytime they wanted to, they could technically dump 90-95% of tokens into the market. That’s not going to make me feel secure if what I’m holding could technically be worth almost 100% less than what it is. That does not fill me with confidence. And this is why, guys, we look for that 50% rule. We look for projects to have 50% or more tokens in circulation. And depending on the project, it can get away with having a little bit lower, maybe 37%, maybe 40% or 50%. That is very low, and I’m going to be steering away from investing in this project. That is one of the main things.
The second thing, guys, is the holders. The holders are very important, guys. How do you check the holders? You click on a project, for example, this random project there. You go to the Explorer section right here, the explorers, and you click on whatever is there. For example, this is built on Arbitron, that is why it says “Hobby scan”. For example, GLQ is built on Etherscan, that is why it says “Etherscan” on the Explorer. So, go into whatever it says and have a look at it. Now, this is why holders are very important, guys. As you can see here on this random project, I found one wallet, one single wallet. So, it could be any of you guys, you or me, holds 47% of the tokens. Now, it’s back to that idea of information. It’s about the idea of if you add tokens into the market, they will be worth less. This person holds 47% of tokens, so what do these people want to do? You never know what’s going to happen. If this person wanted to, he could sell all of his tokens…