With the recent release of smart contracts on the Cardano blockchain developers are now able to develop & release new projects. There is already a whole load of projects in development that plan to soon be released on the Cardano blockchain, this journal details the coins we are most bullish on.
Disclaimer: NOT FINANCIAL NOR INVESTMENT ADVICE. Only you are responsible for any capital-related decisions you make and only you are accountable for the results.
As we stated before – this is a rapidly developing industry. This offers both huge potential, and much greater risk.
Why? With new projects being launched seemingly every day there is always the chance that a new, strong competitor arrives to the scene and essentially steals the marketcap of competing projects as investors move funds over to this new opportunity.
How do we minimize risk? Actively research & stay up to date with the goings on in the Cardano ecosystem. Cardano is rapidly moving ecosystem and if you can’t put in a few hours may get left behind.
The 5 picks, are they long term? For us, yes! We’ve looked at a lot of projects building on Cardano, some are really bad, some good, and some extraordinary. These five are projects that we think have the greatest chance of long term survival.
What factors are you looking at when deciding on these projects? In no particular order, here are some the main factors I look for in a new project: - Strong protocol use case - Experienced development team - Busy (but realistic) road map - Tokenomics - Capital funding - Past price action - Project community
Entry / Exit Strategy
Avoid the FOMO! This isn’t a buy now signal. Our entry strategy is to get my average entry price as low as possible. There are multiple methods to doing this, and I detail them in the entry / exit strategy report. You can find this on Discord & on the website.
In short – we plan to use DCA & dip buying strategies to lower my entry price if we see further negative price action over time.
Don’t overlook your entry strategy! Take the time to plan this out before you start looking to invest It’s also important to have some profit taking targets in mind, I plan to stick with the strategy I detail in the entry / exit strategy report. Taking out what we put in, leaving ourselfs with only profits in the market is our first goal
We get a lot of questions regarding capital allocation. “How much should I invest” & “How I should split it between the 5 coins”. The answer to this questions every time is: we are not offering you financial advice.
Besides the obvious FA reasons, there is also the problem of us not knowing your financial situation. What works for us likely won’t work for you, and what works for you won’t work for us. Everyone is going to have a different financial situation. That is going to play a major role in how, when & how much we should be investing.
Whilst we can’t tell you how to invest your money, we can share some of the rules I stick to when allocating capital. - Most importantly, we never invest more than I can comfortably afford to lose. - We keep around 30% of my portfolio liquid on the blockchain in either USDC, BUSD or USDT. This is to buy crashes & corrections. - We never overexpose my portfolio to low cap coins. - We try to maintain the majority of our portfolio in high caps. - If we feel like we are FOMOing into a project, I’ll turn off my device. These are things that work for us, that doesn’t mean you have to follow them. Everyone is going to invest differently, and as long as you’re profitable there is no right & wrong way to get there.
Acquiring the Project Tokens
Every token is going to be slightly different to buy, some will be available on major exchanges & some won’t be. Some Cardano projects are still using ERC20 as they have yet to be ported over to Cardano blockchain.
If you want to check where a coin can be purchased from, visit its CoinMarketCap page, scroll to the bottom, there you will find your answer.
Bear in mind this an introduction to these coins, not a research report. I strongly encourage you all to research further into these projects if you like what you read within this report.
SingularityNET - $AGIX
AI & Automation is something I’ve spoken about a great deal lately. Singularity aims to bring A.I to the blockchain, offering completely transparent & decentralized A.I programs for anyone to utilize. I recently listened to the Singularity founder Ben Goertzel speak at the Cardano summit and he made some very interesting comments regarding big tech giants like Apple, Google & Amazon. The way they own your data and use that to develop AI programs like Siri & Alexa. If we want a future where our privacy isn’t constantly being invaded we need a future away from centralized companies controlling & processing all of our data.
How to get $AGIX
There is a strong community of avid investors, programmers & researchers behind the Singularity project. This is key for a project that relies so heavily on community involvement. There is also a strong relationship between IHOK & Singularity which is always a good sign. Followers of Charles Hoskinson know that he is bullish on the project.
Competing against the tech giants is very difficult as they have seemingly unlimited funding & some of the brightest minds working for them. That doesn’t mean a community project wouldn’t be as successful but you would just assume it would be a lot more difficult. There is also the question of how far can A.I tech can go. Are we seeing a rapid growth in development that will eventually plateau or will we continue to see significant innovation indefinitely?
ERGO is a highly sophisticated Proof of Work blockchain which probably not the sort of project you expected to see on this top 5 list. There is however a very good reason for including Ergo here and that is the partnership being built with Cardano.
A common misconception is the Proof of Work is a thing of the past and that the only way forward of Proof of Stake. Whilst there are lots of weaknesses with PoW that PoS does address, there are still benefits to the traditional PoW system. Ergo is going to be giving these benefits to Cardano. The first being a DEX that connects both Ergo & Cardano.
I think we will see a lot more coming from the Ergo Cardano partnership. The cross-chain DEX is hopefully just the start!
How to get $ERG
$ERG is available on KuCoin
Brining proof of work to the Cardano blockchain allows for: Increased security, connection to the real world through physical miners & general consensus security. ERGO is anti-ASIC which means you have to use GPU miners to mine $ERG. I know a lot of you reading this either have or are in the process of getting GPU mining rigs. $ERG is a strong alternative to $ETH mining. I plan to put my new rig mining $ERG. The current return rate is slightly below that of Ethereum but it’s still profitable. When Ethereum moves to Proof of Stake in Q1/Q2 of next year I will likely move my other rig to $ERG as well.
The downside for all PoW consensus coins is the negative environmental effect of running a miner. It’s “wasting” a lot of energy that could be used for something else. There is also the risk of a 51% attack (Check the crypto school for more info on this). Lower cap projects are more susceptible to 51% attacks due to their lower total hash rate. But what we also find is that the low amount of available liquidity makes a 51% less profitable for anyone that wishes to pursue it.
Cardano DEX - $ADAX
Every major smart contract platform has its biggest decentralized exchange (DEX). Ethereum has Uniswap. Binance Smart Chain has Pancakeswap. There is yet to be a defining DEX on the Cardano blockchain however there are a few big competitors.
The two biggest Cardano DEX’s on the market, in my opinion, are ADAX & Sundaeswap. From my own research I’ve come to favour ADAX over Sundaeswap & the other competitors. Here’s why:
How to get $ADAX
You can get $ADAX on ExMarkets, no KYC is required. Send $ADA from any exchange to ExMarkets, then simply swap it into $ADAX. You can safely store your $ADAX on Yoroi, or any other Cardano wallet.
ADAX is going to release with a built-in Ethereum bridge. This will allow crypto holders to turn their ERC20 tokens into Cardano tokens with just a few clicks. I think this is a really smart move from ADAX, crypto investors can now avoid the costly ERC20 gas fees and move funds onto Cardano – where fees are much lower.
The ADAX platform layout previewed in their litepaper has a much more familiar interface than most over DEXs. Complicated interfaces make DeFi difficult to utilize, especially for newer investors. This is a step in the right direction that I hope other protocols will follow.
The ADAX DEX is not yet released, there is always the risk that the finished project is not as well polished as the whitepaper & roadmap has led us to believe. ADAX is currently only available on ExMarkets, there is no decentralized alternative or ISPO. It’s hard to find disadvantages with ADAX as the final product is not released. Once it is it will be easier to compare ADAX with other decentralized exchanges on Cardano. Any investment is very speculative in nature for this very reason.
Meld - $MELD
Meld calls itself a “Banking Stack” and it’s not wrong! Meld is a all in one lending & borrowing platform for both Crypto & Fiat. The concept of borrowing and staking on the blockchain is nothing new. We’ve seen this many times before for example AAVE, a project we’ve covered in the past. Meld brings some new & exciting changes to the table that make it different from the protocols we are used to seeing.
How to get $MELD
Initial Stake Pool Offering (ISPO) - www.meld.com
Cardano gives developers the ability to utilize a new, much fairer way to launch their project. In exchange for you delegating your funds to a projects personal staking pool you will be rewarded with the projects native token. Typically we would delegate our $ADA to a standard pool and earn $ADA in return. With an ISPO we will still delegate our $ADA to a pool, in this case the MELD pool, we would then receive the $MELD token instead of $ADA.
We are a huge fan of DeFi and Meld is a prime example of why - A borderless, decentralised alternative to banking. Earn & borrow freely without giving away personal information or giving a central entity custody of your funds.
When taking out a loan you must supply collateral. In this case two times what you wish to borrow. This is standard for any Defi lending platform however what makes MELD special is what they do with your locked collateralized funds. Instead of it sitting in a wallet collecting dust your funds are being put to work in MELDs liquidity pools which means its generating you a return even while its locked.
Similar to with ADAX the final product is not released yet so it’s hard to find downsides. Any investment into $MELD is highly speculative. There is always the risk that the project does not deliver on its initial promises.
DeFIRE - $CWAP
DeFIRE is a DEX aggregator on the Cardano blockchain. A DEX aggregator will compare exchange rates on multiple different decentralised exchange and then automatically use the one that offers the best return. Similar to how any price comparison website would work, just decentralized! Decentralised exchanges don’t use order books like a centralised exchange would but instead they use liquidity pools. This sometimes results in there being big variations in exchange rates between DEXs depending on available liquidity
As the Cardano ecosystem is still so new there is no standout exchange, like with Ethereum & UniSwap. This means there may be liquidity inconsistencies across exchanges. An aggregator like DeFIRE would enable investors to ensure they are always using the pools with the best liquidity & lowest price. It would also save a lot of time, having everything in once place.
DeFIRE is a microcap, making it a lot riskier. If you’re not familiar with low cap projects that are more volatile than your standard crypto investment. DEX aggregators don’t get as much attention as they deserve, especially on Ethereum. DeFi users still typically go straight to their preferred DEX instead of looking the best possible exchange. If this trend continues on Cardano we may see this negatively reflect on DeFIRE.