Before purchasing project tokens, you should ask yourself the following questions:
· Is this team real? Who are these people? What experience do they have?
· Who supported the project?
· Is their valuation reasonable and what problems does the project address?
Venture capitalists make money by investing in private equity rounds
· Always remember that venture capitalists make their money by investing early in token seed and private placement rounds.
· You may think you're going in at a low price, but VC is going in at 20 times lower.
Private placements and seed rounds are an integral part of any project and can help get the project off the ground and start developing a product.
When investors start selling assets, this can create a lot of sell off zones, and most investors will become exit liquidity.
So how do you avoid this?
Before purchasing project tokens, you should check the following things:
· Unlock Activities
· Token Distribution
· Vesting Schedule
Always monitor the unlock date before investing.
Whales act contrary to the market
· Everyone has heard the phrase "Buy Fear, Sell Greed," but few can pull it off.
· This is what whales do. When everyone is selling in panic and fear, they build their positions. Therefore, they profit when greed sets in.
