Original Author:
Ronin
Translated by: Deep Tide TechFlow
Over the past 6 months, I have invested in 189 private/KOL rounds and have identified the best allocation strategies.
“Man, why am I reading this stuff!?”
Having a great product and a community built around the project is fantastic.
But that does not guarantee further growth of the token, especially if the tokenomics model is designed only for the next 1-2 years.
Firstly, fundamentals should address major pressure points, which is why I am sharing this information with you.
The best tokenomics I will invest in
TGE unlocks 5-7%
Yes, we want to make profits quickly, right now. But we also want to taste the profits early on. Through this TGE, we can achieve:
Low token circulation (leaving ample room for rapid market cap growth)
Stable and increasing token prices
Opportunity to offload during a bull market driven by investors
TGE with 11-15% circulating supply
The unlocking system is as follows:
Initial release 11-15% -> End of the first year 20% -> End of the second year 30-35% -> Then, linear unlocking for several years
Lock-up period of 3-6 months
Investing within a 12-month lock-up period is a foolish idea, as our unlocking will occur during a bear market. However, a lock-up period of 6 months can help retail investors have more confidence in the token, leading to more purchases and additional liquidity.
If retail investors are confident, 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 peaks.
Team vesting period after investors (rules)
Linear vesting
Daily – very good
Monthly – good
Quarterly – not good
Best allocation
30-40% for community/ecosystem
15% for investors
15% for founders
25% for reserves
5% for advisors/KOL
5% for market makers and CEX
Ideally, the unlocking ratio on the day of TGE (token generation event) would be 4% for investors/advisors, 5% for public sale, 6% for community/reserves, totaling 15%.
Conclusion
If you decide to invest in any altcoin, please check it against the standards I have described above.
If you decide to invest in any private/KOL rounds, also carefully check the standards I have provided (but sometimes, you may find better, faster deals).
I hope my losses over these 6 months can teach some people and help you make 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 based on speculation, smart money movements, or technical analysis is a bad idea. You also need to follow fundamentals and current news (that’s the only secret to success).
