My Parachain Strategy Guide! Invest in the Polkadot Parachains the Smart Way!
If you are new to my channel, i would like to extend a very, very warm welcome. My goal with this channel is to provide you no bs, crypto content on a weekly basis. So, jumping straight into todays video, i want to give you my take on participating in the polka dot crowd loans, whether you adopt my way of thinking and go ahead and do that yourself or if i simply give you something to think about. Ive done my job. Just remember to do your own research and just a little update id like to let you all know, unfortunately, just because my channel has grown inside so quickly, which i want to also. Thank you so much for really do appreciate that i cant respond to comments as much as i used to. Unfortunately, i really do like interacting with every single one of you in helping you all out but, as i say, unfortunately, just because its grown so quickly its taking hours and hours to respond to all my comments, so instead ill respond to comments immediately after i post A video wait a few days and respond to the comments on the same video. You know a couple days later, so with all that being said, if you would like to direct message me in any way, please go join my discord or also dm me on twitter, where im a lot more active, but still it does take a lot of time To get to messages, the links will be in the description.
Okay, so, first of all, i thought its completely necessary to tell you all my opinion on the polka dot crowd loans in general. Just so, you know where i actually stand, but as we should all know by now, it doesnt look good in regards to returns for some of the larger projects, and that is just going to be a fact. If what i just said shocked you at all or surprised you, i urge you to check out my ratio prediction videos for akala, moonbeam and ace the networks. The link will be seen at the top right hand, corner of your screen and youll quickly see why now the kusama para chain or power chain auction should, i say, seems to be the place to be fully high returns in regards to parrot chain crowd loans. This is pretty much because the canary networks for these sister nets so like, for example, kurura, furukawa or moon river for moonbeam, seem to have a higher return, because these projects are actually designed to be tested and trialled on the kusama network. First, before the teams can make any sort of changes and then upload those changes or make those changes before their polka dot counterparts, and we can actually see this in regards to a star changing their tokenomics right before the crowd loan began. What im trying to say is the polkadot para chains are supposed to be the biggest sister of their kusama counterparts and therefore supposed to be less volatile and a lot more structured.
Now. This now leads me back to my point of low rewards. The larger projects like akala moon, beam and a star will all generate low ratios for their crowd. Loan contributors, as there is more demand and teams, may make changes on the token distribution like ive mentioned with a star. So my idea, moving forward is to look for power chains that will offer high roi, while still maintaining a high chance of winning a paratrain slot in todays example, ill be focusing on the first batch of five auctions. However, you can easily replicate a majority of this for the remaining batches so on each batch we know therell be five winners. Now you can see the list of all the contenders on the screen now and lets face the music here. People akala moon, beam and a star are all probably going to win first, second and third, so therefore we need to look at who has the chance of coming. Fourth and fifth, its the participants competing at this level that will generate the higher roi. As the hype has followed the three aforementioned projects, ideally, if the fourth and fifth spot looked like it, was going to be filled between a brand new lets, just call it ico coin that youre only able to participate in via a crowd loan versus a coin. That is openly traded. I would choose the ladder personally, i honestly would prefer to invest in the coin on the open market, so im able to maintain liquidity and also be exposed to price movement as a result of a slot victory, plain and simple.
The reasoning for this is, i dont want my dot locked away for 96 weeks, no matter how many third parties offer a one to one liquid dot ratio or how appealing their additional bonuses are. I will go on to what two coins, i think, have a great chance at this in a second, with the reasons as to why, but i know things can easily change, so i want to show you a fantastic tool that will let you know this ahead of Time and what youre able to see on screen now is, in fact that tool. This is the current amount of dot contributed to each active crowd loan. So obviously there are quite a few not open yet, but this chart does allow you to assume, and the keyword is assume here, what the dot contributed to the individual crowd. Loans may be now the reason we dont take this as the final amount of dot that a project will participate in the auctions with is because the project itself may have very large bags from early investors and also other means that they are also using to participate With also a single investor may completely blow these figures out of the water, as seen in the screenshot here, an individual whether it was institutional or not contributed a whopping, 3.5 million dot to a caller just crazy, not to tease you too much, but i wanted to Give those of you who were participating in a carla some insight into the use of lc dot and what the possibilities are here, and this is actually a part of my strategy anyway.
This can also work with other third party projects that are allowing you to gain your contributed dot back in a liquid form, such as binances b, dot, which ill be making a video on tomorrow or equilibrium, and parallel finances x dot. So my original power change strategy will be able to work in the instance that akala wins the first slot and, as you can see from the screenshot, they are currently double the dot of the next closest project which is moonbeam. So it does look like this will realize, but again far too early to be able to definitely tell if you wanted to know what the actual strategy was then check out the video linked at the top right hand corner of your screen. My strategy is basically a newer and refined version. However, you can still use the old one, and just so you are aware, when i refer to a color from here on or more specifically, lc dot. Just remember you can swap this out with your liquid dot variant. So my strategy will firstly require an understanding of your portfolio as a whole. Lets use the example that you are participating with one hundred dot tokens. Then we will need to split this portfolio into two parts. The first i call my lc.holdings, which will be 33 of the portfolio and the second being dot liquid holdings, which will be the remaining 66 of your portfolio still remained in dot tokens. So obviously the lcd holdings will be used to participate in the akala crowd loan.
Under option 2, exposing us to lcdot and also aca tokens in this case we are offering 33 dot tokens and will receive a small amount of aca tokens and the 33ld back at the network launch now akala does claim. The network launch will be immediately after a successful slot is confirmed, which should theoretically be between the 18th and 20th of november, at least again in theory. I wouldnt hold your breath, though. When the network is launched, you should also have the ability to convert your lc dot back into dot via an amm, which you should do asap as a part of this strategy. This will then be converted back into the rough dollar figure you put in in this case, itll be 33 dot by about 51 per dot, which is about 1600 dollars and converted off the network back into a stable coin like usdt, where we will hold it. For now, the reason we do this is because one we have now exposed ourselves to the aca token, which will grant us somewhat of a return immediately and in the coming years, although its not much its still something. The second is because i want the free nft, as the bonus percent rewards wont, really be all that great at this hypothetical investment and three is because we really dont know when the network will actually be up and running for sure. Neither do we know when the trading pair between the lc dot and dot will be active.
So realistically, these funds should be considered useless and not guaranteed youll receive them in a timely manner. For those of you who are using a third party, i would say, youll have yours back potentially sooner, although you will need to ensure that youre able to convert these back into dot or a stable coin asap. Alternatively, though, you could use these funds for liquidity and to earn yield, the opportunities are literally endless and its entirely up to you what you do with these funds and the fourth and final one is because i actually want to use these funds to participate in a Promising project that will take full advantage of the bull market, such as convergence, finance or cyto, for example. However, you can again invest this in whatever you need im, just keeping these funds away from the paratrain auctions just to allow me to be exposed to different things. Although in saying that there is nothing stopping you from reinvesting this into another power chain as well, just make sure you convert it back into dot at least asap, and just a quick side note this percentage shouldnt be solidified in anyones, mind you could just as well Contribute five tokens to a color and obviously, to do this, you will receive the nft and obviously a fraction of the aca tokens as well. The more you expose yourself guys without spreading capital thin is always a good thing, at least in my opinion now, in regards to the remaining 66.
This is the funding for both or either of the fourth and fifth auctions. The reason you are seeing the tether and dot tokens on your screen is because i have no idea whether an openly traded, token or tokens will win both spots or, if two crowd loan tokens will win or better yet one of each. So you need to ask yourself if youre comfortable, locking away your dot for two years in the case, one or both spots are secured by crowd loan projects. Ideally, as i have already mentioned, the whole goal is to invest in the project or projects that are openly tradable, such as clover, finance and lutentry. However, in this case, we wont be able to tell until the time obviously comes. I really cant run through every single scenario with you guys, unfortunately, but i want to mention that if both spots are filled by crowd, loaned projects – and you are like me and wont – want to lock away your dot. Remember. There are liquid dot options, including the likes of binance, if using something like the equilibrium or parallel finance interface is too difficult for you or you are very, very new now. This leads me into what projects i actually believe could win these spots. I think off the start, the most viable containers would be late: entry, centrifuge clover, finance cross network and affinity. Obviously, i have left out some great projects like darwinia for non obvious reasons, such as they arent already trading.
All the social engagement is not where it needs to be now realistically guys, i could just say, wait until november 30th and december 1st, which are the two days prior to the fourth auction. In order to check that dot funding chart, i showed you earlier and place your bet on the project that is coming in fourth or in the case of the fifth auction, wait until december 7th and december 8th, but i feel like explaining some metrics that will give You an understanding on what projects may rank up there before that time comes also, there will likely be disadvantages on waiting until right before the fourth and fifth auction, which i will mention shortly again. This is just to give you an understanding of what may make a project more appealing over the other, as a single person can contribute millions of dot like in a carlos case and blow this right out of the water, as mentioned waiting until the last few days. Before the commencement of auction four and five to ensure a project has the highest chances of winning does have its disadvantages, i would say the most obvious would be hindering returns as we would be in the latter stages of this bull run. Now, of course, there are super cycle ideologies, but lets just keep it simple. So realistically, these coins may already be higher in price and therefore holding off for too long may result in you losing potential profits.
This is where utilizing the metric information i am about to provide and also regularly tracking, where these projects are on the dot contribution chart is very, very important. You absolutely need to keep a constant eye on this information and decide to invest when you are confident in both the dot chart and the projects engagement. Now not to worry guys, i will be keeping you all updated on my twitter in regards to who the fourth and fifth contender might be, and probably more so, on my discord now. This is obviously important, but dont over complicate it. Okay, we arent talking about the difference between tens of thousands of dollars for at least most people. We are maybe talking at max a few thousand now. If you are worried about investing in the wrong power chain, then i would simply play it safe and wait until closer to the fourth and fifth auction dates and look at investing in whatever projects seem to be winning or simply choosing the project that you, like. The most ill personally be waiting until all projects are tracked on the dot contribution chart, giving it around a week or two from the date that happens, finding the two closest to winning the fourth and fifth spot, ensuring their metrics obviously align with a higher social engagement And pulling the trigger early, i dont want to get caught out waiting too long and investing at higher prices. Obviously again keeping you updated on.
My socials is my goal here as well. Moving on to my indicators, now, im using a website called lunacrush to locate the social engagement metric and the shared link metric to understand how popular a project currently is. I will also be using the twitter followers as a benchmark, although this really isnt as accurate as engagement, is more important than the number of followers. A project obviously has so literary has 63 000 followers, with social engagement being at 35.1 million, and the shared links being at a whopping 8.25 k. Now centrifuge has 42 000 followers and is not listed on lunar. Crush now were going to actually find projects that also launched on coin list. Dont actually have any of their social metrics available. Yet now, clover finance has 78 000 followers and is not listed on. Luna crush cross network has 97 000 followers, with social engagement being at 9.96 million and shared links at 970.. Now affinity has 15 000 followers and no lunar crush stats. However, affinity is extremely endorsed by engine who are obviously their creators, which wouldnt surprise me if they invested heavily into the auctions. Also, the backers are extremely top quality, so this one had to be included now. I do feel like i should say all of these projects. Actually do have decent venture capitalist backing, although, in my opinion, affinity takes the cake in terms of quantity and quality. Now i just want to give a quick example of what metrics that dont look appealing, actually look like just so youre well aware, and in this case it is darwinian network.
Here we can see. Darwinia has 70 000 followers, which is quite impressive, although the social engagement is at 1.3 million and share links is only 111.. When you compare this to any ordinary project yeah, it may stack up decently. However, when it comes to actually competing with projects that are literally 35 times more engaged with, then it wont win, but then again anything can happen. Now that i have somewhat justified my reasoning, i think this will realistically come down to a fight between latintry clover, finance, crust network and id probably have affinity in there as a dark horse. One important thing as well: if your capital is spread thin, i would look at investing in one over the other, meaning either the fourth or the fifth parachain spot. I would also like to point out that, if it looks like project four and project five are either going to be or are both not openly traded coins, then i would look at using these funds to invest into a smaller project that has yet to take an Off ie, not a parachain, and i dont want to sound like a broken record, but just to reiterate what i was saying about the dot contribution chart and also the social metrics. I want you to use these to grasp the concept of what a project is potentially receiving more funding than the next, although at the end of the day, we cannot use this as any form of formal criteria as the venture capitalist backing and the individual contribution of Dot will alter the outcome.
Okay, guys that will sum the video up. Now i wanted to make this as simple as i possibly could, so that you can add or take things away depending on what your strategy may be and how much potential dot you have to contribute to the power chains. Now i especially figure this would be great for the beginners, as it gives structure that they may already not have, and i also hope this gave you some important – do your own research topics to look at as well again use luna crush. It is free for most things and to go on there and to look at some of the reasons why a certain coin would be better than the next again. Ive only mentioned five here that you can see on screen and ive, obviously broken them down a bit more and taken out centrifuge thats, just my opinion on these four coins that could potentially win. In my complete honesty, if i was to place a bet on two coins, well lets just say three because honestly, i definitely think lutentry will place. I think its between clover and crust network, but also again, its very, very hard to tell its anyones guess. So i think its far too early to be able to definitely tell whos in the lead of who, but i think if you follow what ive mentioned to you in todays, video youll have a great understanding moving forward. Now, if you did have any more suggestions regarding things or topics, i should cover in regards to these last to the fourth and fifth auctions, please let me know i can make a new video closer to the date and i can obviously let you all know on Whats happening now with all that being said, i thank you so much for watching todays video but, most importantly, i hope you have learned something or adopted or will think about adopting a certain way going forward for the polkadot paratrain auctions.
Now i would like to announce i will be taking on one on one clients for sessions in the next few weeks. So if you would be interested in a paid session, please either email me or dm me on either discord or twitter for more updates. But again i might make a quick youtube video just announcing this in the next few days.