You know Dogecoin (DOGE), the speculative crypto token with a fluffy dog mascot?
It shot up 100x in the last four years.
DOGE is now worth more than Target (TGT)… America’s oldest bank, BNY Mellon (BK)… and America’s largest homebuilder, D.R. Horton (DHI).
Another crypto token called “AI Prophecy” has surged 3,000% since Election Day. Many other “memecoins” with silly names are doubling and tripling.
Some investors look at this and conclude crypto is just one giant casino. There’s no way to tell which dog coin will pump next. The only way to find a crypto that can 100x is to get extremely lucky.
They’re missing the big picture. We’re moving into a new crypto era.
You see, this memecoin circus wasn’t an accident. It was engineered by regulators.
They purposely created a twisted system where joke tokens flourished while real innovation froze.
Charlie Munger — Warren Buffett’s right-hand man — always said, “Show me the incentives, and I’ll show you the outcome.”
For the past four years, America’s crypto rules created the worst possible incentives.
Anyone could make a worthless token named after their pet hamster. But trying to build a platform that allows anyone to seamlessly send money across borders? That could land you in jail. The US Securities and Exchange Commission (SEC) would hunt down and sue innovators who built something useful.
We lived in a bizarro world where the only projects regulators allowed were cryptos that obviously had no underlying value. It’s as if trading GameStop (GME) meme stocks was fine but investing in Amazon (AMZN) or Apple (AAPL) was illegal.
Crypto banks were shut down by the government. Founders and funds were sued. Protocols were subject to constant surveillance sweeps.
This wasn’t an accident. Their plan: create a circus atmosphere filled with joke memecoins. Then point at it and say, “See? Crypto is nothing but a giant casino. Let’s ban it.”
Thankfully, they failed.
The US presidential election results freed crypto from its regulatory handcuffs.
The incoming Congress will be the most pro-crypto we’ve ever seen. And Gary Gensler, the SEC chairman who made it his mission to strangle crypto innovation, exits on inauguration day.
For the first time in years, entrepreneurs can build without fear of a lawsuit landing on their desk. Think of it as crypto’s legalization day. A new crypto era.
This means the next 100x crypto probably won’t be a memecoin.
We’re entering a time when quality crypto businesses solving real problems will shine.
These cryptos will shoot up 100x not because of they sound funny… but because they truly deserve it.
The market already smells this freedom. Just look at the charts of small, quality cryptos that were under the SEC’s thumb.
VitaDAO (VITA), a project revolutionizing biotech funding, jumped 300%.
Render Network (RNDR), “Uber for AI chips,” surged 100%.
The Graph (GRT), which works like “Google of blockchain,” shot up 100%.
Hivemapper (HONEY), which created a more accurate version of Google Maps, gained 100%.
These aren’t memecoins. They’re real businesses solving real problems. And now they can operate in the daylight instead of regulatory shadows.
They are also the kind of quality cryptos we hunt for in RiskHedge Venture. Even under hostile regulations, our portfolio beat bitcoin’s performance in 2023. Here are our results:
Our latest picks — shared on November 14 — are already up 60% and 20%, respectively. Both are huge winners from the coming regulatory shift.
Investing in crypto today is like investing in Facebook when Zuckerberg launched it out of his dorm room.
Bitcoin (BTC) went live in early 2009.
That very same day, investors could buy it for fractions of a cent. I know many folks who did and made lifechanging money.
A few years back, almost every crypto held an initial coin offering (ICO), crypto’s version of an IPO.
That’s what got me hooked on crypto: the chance to invest in the next Facebook when it was just some college kids in their dorm rooms. It’s one of the only ways to 100x your investment. ICOs offered ground-floor access to potentially world-changing projects.
This is the opposite of how the stock market works nowadays. By the time Uber or Airbnb go public, they’re already worth billions. All the explosive early growth has been captured by insiders.
ICOs let ordinary investors get in on the ground floor.
Then the SEC de facto banned ICOs, calling them “illegal securities.” Instead of an open auction that anyone can buy into, early stage tokens were handed to venture capitalists (VCs) behind closed doors.
By the time a token became publicly tradable, VCs were often up 100X or more on their positions. Once again, regulations had turned a fair (risky, but fair) market into an insider’s game.
But the coming wave of regulatory clarity will once again give ordinary investors the chance to get in early on quality projects and the chance to 100x their investment. Get ready for the return of ICOs.
Dog tokens and other joke memecoins won’t disappear completely. But the momentum is shifting toward substance over speculation.
We’re entering the golden era of crypto innovations. And not 1 in 100 investors is prepared for this opportunity.
For more insights, subscribe to my investing letter The Jolt⚡.
I publish fresh research on stocks and crypto every Monday and Friday.
Also, I run a crypto advisory called Venture. You can learn more about it by clicking here.
— Stephen McBride, Chief Analyst at RiskHedge
Where to look for the next 100x crypto? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.