How to Spot Long-Term Winners in Crypto: 3 Examples

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Avatar for Japh
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2 years ago

First off, you have to be mindful of 3 things:

  1. Great minds are consistent at their craft. 

  2. Great minds are recognized by other great minds. 

  3. Sooner or later, great minds attract capital, and those who recognize them early get rewarded.

In this article, I will explore three projects at the 2nd stage which still offer asymmetric rewards (where their potential upside is much greater than their potential downside). 

Now let’s explore 3 crypto investments that meet our long-term winning criteria. 

1. Quantstamp ($QSP)

Quantstamp website homepage

Quantstamp ($QSP) is a coin from 2017. It experienced the tail end of the 2017 bull mania and lived through the excruciating crypto bear market of 2018/19/20. 

So, where is it today? 

Just like many other 2017-crypto projects, $QSP has not yet fully recovered and is still underwater from its all-time high. 

However, $QSP has already put in its all-time low in March 2020, and has since been building a beautiful market structure:

Quantstamp (QSP) price chart - full history (Source)

In the chart above, take note of how $QSP has put in higher highs and higher lows since its all-time low. 

This is really good.

Now, notice how $QSP has broken above that critical line of resistance and has recently come back down to test it as support?

This is also a really good sign as it appears to be respecting this level with a strong bounce. 

That said, this is the type of market structure you want to see when spotting long-term winners in crypto. Also, combining that with the fact that $QSP hasn’t made new ATHs yet, makes the risk-to-reward ratio for $QSP a screaming buy. 

Now, let’s look at the fundamentals:

Quantstamp is a leader in blockchain and smart contract security. Period.

Industry-leading blockchain companies and cryptocurrency projects hire Quantstamp to conduct smart contract, off-chain, networking, and front-end audits in order to enhance their security and assess their risk. 

Quantstamp has performed over 200 audits and secured over $100 billion in value for top tier crypto clients across a wide range of facets including:

  • NFTs

  • DeFi

  • Layer 1 Blockchains

  • Blockchain and Layer 1 Ecosystem Development

  • CBDCs and Stablecoins

  • Exchange and Custodian Services

  • Enterprise Research and Implementations

  • Insurance Offerings

Some of the leading blockchain projects working with Quantstamp are:

So yeah, with projects like Ethereum 2.0 (Prysm and Teku clients), Flow, Avalanche, Binance Smart Chain, Cardano, Hedera Hashgraph, Tezos, and more, it’s clear to me that Quantstamp is dominating the blockchain security space. 

But one thing I really want to highlight here is their work with DeFi.

Quantstamp keeps on hammering out the DeFi audits with laser focus. 

They’ve completed expert audits for DeFi projects: Maker, Aave, Compound, Curve, Sushi, Chainlink, Reflexer (RAI), KeeperDAO, BarnBridge, Saddle Finance, Idle Finance, Badger DAO, xDai, Polygon, and more. 

Furthermore, DeFi is already a $100B+ industry and still in its early days. It still has plenty of room to evolve and grow and Quantstamp will be there every step of the way as this industry booms. 

And yes, while $QSP might not have the best DeFi utility yet (think of yield, lending, collateral, etc.), but in the future, $QSP will be like a piece of their company, simple as that.

2. Harvest Finance ($FARM)

Harvest Finance website homepage

Harvest Finance ($FARM) is a lucrative automated yield farming protocol that launched during the height of DeFi Summer 2020. That said, Harvest Finance is just under a year old now.

So, where is it today?

Harvest Finance (FARM) price chart - full history (Source)

Looking at the price chart above, you’ll notice that $FARM doesn’t have the most bullish chart in crypto. It’s failed to really gain momentum and establish an upwards trend…  

Basically, $FARM has traded within a range between $70 - $300 since inception. 

That said, take a look at where we are now… We’re trading at the bottom of the range at $70! 

Do you know what this means?

Every time $FARM has gotten to the bottom of this range ($70), it tests it as support and then blasts strongly to the top of the range ($300).

That said, the risk-to-reward ratio on $FARM right now couldn’t be any better. 

However, does $FARM have the strong fundamentals to back it up? 

Let’s look at the fundamentals:

Harvest Finance is the best place to be in DeFi. Period. 

Their automated yield farming platform allows anyone to put their idle crypto assets to work in the highest producing yield-farming opportunities and saves users a ton of gas by farming with the collective. 

Harvest stays on top of the game by consistently adding support for the latest and greatest strategies available. 

For instance, Harvest currently supports 145 different high-yielding strategies across both the Ethereum and Binance networks via 19 different DeFi platforms. 

To give you a lil taste, here are some of Harvest’s high-yielding strategy categories:

  • Stablecoins

  • BTC

  • Staked ETH

  • Uniswap Liquidity

  • SushiSwap

  • NFTs

  • 1Inch

  • Mirrored Stocks

  • + More

No other yield-farming platform comes even close to the number of opportunities supported by Harvest Finance and their team is committed to always bringing its users the best value. 

And oh boy are they delivering value!

Harvest Finance is the most undervalued project in terms of FDV/TVL compared to its competitors:

Not only that, but Harvest is consistently delivering daily profits to farmers. In Q2 2020, Harvest delivered 86% more daily profits to farmers than in Q1:

Another fundamental boost for Harvest is it's incredibly low P/E (Price/Earnings ratio), which indicates that the $FARM token price is low relative to its earnings:

All that being said, $FARM appears to be incredibly undervalued from both a fundamental and technical perspective. Therefore, the risk-to-reward ratio for investing in $FARM is potentially the best it's ever been.

Do with this information as you will ;)

3. CargoX ($CXO)

CargoX website homepage

CargoX is an independent supplier of blockchain-based solutions for logistics, specifically for processing Bills of Lading (B/L) - the most important documents in the global logistics industry. 

Additionally, CargoX is used to upload and securely transfer more than 60 other types of highly sensitive documents that business partners, customers, or companies need to be confidential. 

Cargox’s encrypted blockchain-based document-transfer solution and cryptocurrency launched in early 2018, at the very beginning of the last major crypto bear market. 

Despite launching during the most difficult times for cryptocurrency, CargoX kept its head in the game; they built out its platform, made multiple promising partnerships, acquired customers, made deals, won awards, and never stopped building and innovating. 

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