The problem

Retail investors do not get the opportunity to invest in promising early stage crypto projects that can earn them multibagger returns

Large investors stick to the bluechip crypto projects such as Bitcoin and Ethereum. These bluechip projects do not give high returns (compared to smallcap crypto projects) but they are less volatile and have a more predicable future. However, retail investors often try to invest in early stage-projects in the hope of earning much higher returns. Good early stage projects can deliver huge returns, however, most retail investors cannot invest in such projects since -

  1. Identifying promising projects at an early stage requires detailed research. Retail investors do not have the time, contacts, and the tools required to research on their own

  2. Early stage investment opportunities are announced in closed groups and retail investors do not get to know about them

  3. Early investments (seed, private sales, IDO) often require a large investment. Retail investors do not like to invest much in new projects

  4. Early investments have a lock-in period which makes it more risky for retail investors

  5. Tracking new projects and ascertaining when to exit is very difficult for retail investors

Last updated