Don't lie, we've all asked that question, and more of us have Googled it than we'd like to admit. Our partners have always told us what we wanted to hear, but we've always known it deep down, YES, SIZE DOES MATTER!
@BitCloutBuffett is here to set the record straight and tell you that the truth will set you free. Because, guess what? The larger the creator coin, the harder it's going to be to generate a significant return. Wait, what did you think I was talking about?
Now, I know what you're thinking, 1) I've got a sick mind and 2) no shit! it's harder to double a $10k coin than it is a $100 coin! This matters more today than ever before, because creator coin volumes (especially buys) have plummeted. If you look at the chart below from BitCloutPulse.Com, buying volume across the entire platform has fallen to between $500k to $1 million a day, compared to a month ago where ~$7-10 million was the norm.
Think about that for a second. If buys are down to less than a million a day, then based on the bonding curve, generating 2-4x returns on a large coin may be nearly impossible (at least in the near-term).
If you look at the math below, for example, to 4x the price of a $1,200 coin, you would need to bring in $450k in new investments. That's almost 10% of all the buys we've seen on the platform over the past week! Now comparatively, to 4x the price of a $77 coin only takes about $7k in new investments.
Now, this doesn't mean I don't invest or find value in larger coins (see my investment in @craig or @desginsta). There's nothing wrong with these large cap coins and the stability they often bring ("hitting singles"), but for those looking for the early day "home run" returns, you should probably start looking at creators with coins below $500!
I looked into the hundreds of investments in my own portfolio, and I found that the small cap creators were in many cases my biggest wins!
Now to be fair, there is a downside to this strategy: IT'S TIME CONSUMING and VOLATILE! With the amount of rug pulls and new creators dropping off the platform, there is a lot of potential downside if you don't choose the correct coins! Due to those challenges, I've recently outsourced a lot of my due diligence to two interesting accounts: @belowfifty and @smallfund that I think are worth taking a look at:
- @belowfifty - incubator that spotlights, invests and supports accounts below $50. Tons of upside in their plays and I love how @millytamati helps grow these small accounts.
- @smallfund - more of a traditional fund that invests in smaller accounts and reinvests 40% of their profits back into their coin.
Even if you don't want to invest in these accounts, I absolutely think they're worth a follow to see who they're investing in! Not only do I think these accounts help you avoid potential scams; they've also found some really interesting new/small creators:
- @chadgouws - a South African AI engineer recommended by @belowfifty who's been brining a ton of interesting insights to the platform in a short amount of time.
- @sanchy - @belowfifty's first featured creator who's a social entrepreneur who's been championing the Spanish community on BitClout (notice the global theme).
- @beerselfie - investment of @smallfund that is pretty self explanatory with a pretty large following on other social platforms.
So there you have it folks, I've answered the age old question: Size does matter... when it comes to Creator Coins! If you didn't stop reading after the first paragraph and have gotten to this point, sorry for the #ClickBait! I hope you enjoyed learning about my most recent strategy. If you have any questions or if you want to discuss these topics, ping me on BitClout!