Track Smart Money and Venture Capital Firms
The first step is following the smart money - venture capital firms and whale wallets. These are the investors with deep connections, inside access, and early exposure to projects before they hit exchanges.
The main tool: CryptoRank.
On CryptoRank, go to Fundraising → Funding Rounds. There you’ll see which projects have raised capital, from whom, and how much.
Example: SUI Since launch, SUI has risen over 1,000%. Its early investors included Andreessen Horowitz, Coinbase Ventures, and Binance Labs - top-tier names that often indicate quality.
Here’s what to look for:
- Backing from at least 2–3 reputable VC firms
- Funding of $10M+ in early rounds
However, be cautious. VCs often receive discounted tokens and can dump on retail investors once the token lists. So treat VC backing as a signal, not a guarantee.
For even deeper tracking, use Nansen to monitor whale wallets and institutional accumulation. It’s a paid tool, but seeing where large wallets move money before announcements can be a major edge.
Verify the Team and Development Activity
Once you’ve spotted a project, verify the team and code activity. This is where most people fail - they buy based on hype instead of substance.
Start with LinkedIn:
On CryptoRank, open the project page and click “Team".
Research each founder and core developer.
Look for proven experience at credible companies.
Example:
SUI’s founder, Evan Chang, previously worked at Apple and Facebook - clear indicators of credibility and technical expertise.
Red Flags:
- Anonymous or unverifiable teams
- History of failed or scam projects
- No visible development or community presence
Next, check their GitHub:
- Find the project’s GitHub repository.
- Go to Insights → Commits.
- Check the commit frequency chart.
You want to see consistent commits - at least 10–20 per month. If there’s been no code activity for months, it’s a major red flag.
Analyze Tokenomics
Now, let’s talk about tokenomics - how the token supply is distributed and when it unlocks. Bad tokenomics can kill even the most hyped project.
Use CoinGecko or CryptoRank to check:
- Token allocation (team, investors, public sale, community)
- Vesting and unlock schedules
- Circulating vs total supply
Example:
The project Plasma had 25% of tokens allocated to the team, 25% to investors, and only 10% to a public sale. That means half the supply was controlled by insiders - a recipe for a dump once unlocks begin.
Look for projects where:
- Team and investor allocations are below 40% combined
- Public and community allocations dominate the supply
- Token unlocks are staggered gradually, not all at once
Track Adoption and Real Usage
The next step is checking real adoption - not just hype.
Use Dune Analytics to track metrics like:
- Daily active users
- Transaction volume
- Unique wallet addresses
For DeFi projects, use DeFi Llama to monitor Total Value Locked (TVL) - how much money is actually in the protocol.
A healthy project shows:
- Steady or rising TVL
- Consistent user growth
- Active community discussions
Compare the market cap to TVL - if the market cap is 10x the TVL, the project may be overvalued.
You should also evaluate social media engagement:
- Look beyond follower counts
- Focus on likes, comments, and discussions
Example:
SUI’s X (Twitter) account has 1.1M followers with strong engagement. In contrast, Decentraland has over 600K followers but weak post engagement — a sign of declining community energy.
Beware of fake hype:
Projects can buy followers, pay influencers, or use bots to create artificial buzz. A real community asks hard questions and debates ideas, not just spams “WAGMI.”
Entry Strategy and Risk Management
After finding a promising project, your entry and exit plan matter more than anything.
Here’s a simple framework:
- Max allocation per altcoin: 5% of your total portfolio. Example: $10,000 portfolio → max $500 per altcoin.
- Staggered buys: Buy 30% now, Buy 30% if it dips 10%, Buy 40% if it dips another 10%. This way, you average in safely instead of chasing pumps.
- Profit-taking strategy: At 2x, withdraw your initial investment. At 5x, sell 50% of remaining. At 10x, sell another 25%, let the rest ride.
Document every trade. Write your investment thesis: “Bought because of strong VC backing, active development, and rising TVL.” One or two successful picks can outperform dozens of losses, as long as you manage risk like a professional.
Do the Work Others Won’t
Finding the next 100x altcoin isn’t luck — it’s discipline.
Track smart money with CryptoRank. Verify teams on LinkedIn and GitHub. Check tokenomics, adoption metrics, and TVL. And above all, manage your risk.
Most people chase trends on X. You’ll be ahead of 95% of them simply by doing the research they skip.
The next big altcoin isn’t hidden - it’s just waiting for the few willing to dig deep enough to find it.
