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Funds and money in crypto

Funds and money in crypto

First, let's determine why money are required for the project.

Money. The first and most evident thought that occurs to mind. A startup exchanges a portion of its stock or tokens (often a soul) for digital evergreen paper. Is it feasible to grow your business without these funds? Certainly, you can, but why? When a team has operational cash flow, it can stop pursuing profits from day one and instead focus on developing a high-quality product that will bring a lot more profit for everyone in the long run.

Expertise. Every big VC has a whole team of specialists that can assist a new or not-so-young startup with a variety of difficulties, including business model development, tokenomics, marketing, and cost reduction. Even if a developer is a talented coder, this does not guarantee that he or she can create a lucrative firm.

Connections. The fact that funds invest in dozens of initiatives necessitates communication with hundreds of thousands of professionals worldwide. There may be an intriguing project in the investor's portfolio with which one might form a relationship or attract customers.

Quality rating. When a cool fund invests in a firm, the rest of the market receives a signal to keep an eye on them. If stock experts who evaluate hundreds of companies every month opt to invest in the team, then the startup's concept and potential are rather strong. While this does not alter the fact that even market experts occasionally miss the mark.

We have therefore determined why we require a financial investment and will proceed. The following important question is how much was invested in the project.
It would appear that more is better. However, this is not always the case, at least not in our experience as bold speculators.

When 100-200 million dollars are invested in a token, this indicates that the minimum FDV is already trying for a billion dollars, making it considerably more difficult for early investors to obtain Xs with sensible prices on the listing. Therefore, purchasing such enormous items at the beginning of the market is a mediocre idea, however participation in their activities is an excellent idea.

On the other hand, if they invest too little ($100-300k), this may indicate that they don't trust much in the progress just yet; other funds invested three kopecks just in case. With this alternative, however, there is a substantial potential for X, as was the case with My Neighbor Alice, who, after privately accumulating two lyams, moved to binance and made their early investors and players wealthy. I should emphasize, however, that this is a relatively unusual occurrence, which occurred owing to the bull market's enthusiasm.

Ideally, we are interested in anything that falls between the preceding two criteria. A $5-20k investment gives ample room for X's on the listing, and is sufficient to form a really cool team and develop the product.

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