Finding Eligible Native Tokens in Your Sector

First, we identified the general market direction..

Then, we picked a sector of crypto that we love and want to focus our attention on….

Now, we need to find some juicy native tokens that can provide us with the 100x opportunity.

This is step number 3 in the Crypto 100x Blueprint Checklist. This is where we start to make some magic happen.

But, what is a native token?

Native tokens are crypto tokens/projects that live on a certain blockchain. There are a ton of layer 1/layer 2 blockchains that dapps (crypto projects) can build on. These projects building on the layer 1/layer 2 blockchains release apps that run on the blockchain called dapps. These dapps typically also release a token, which is where we get native tokens. These tokens represent their respected project, and they live on the blockchain that the project chose to build on.

JUP is a native token on SOL

UNI is a native token on ETH

LENFI is a native token on ADA

(there’s a little nuance where ERC-20 tokens are not technically native, but for this argument they are native to Ethereum)

An example of this would be Uniswap building a DEX on Ethereum where the UNI token is a native token to the ETH blockchain. Another example is LENFI building a lending protocol that lives on Cardano as a dapp. LENFI is therefore a native token on the ADA blockchain.

Native tokens are just tokens that live on a certain blockchain, and they typically represent their respected dapp. These tokens usually give some utility, and they can be bought, traded, sold, or leveraged against. These tokens provide opportunity.

Think of these tokens like apps on the App Store. Apple is the layer 1 blockchain, and the apps are the native tokens that live on that blockchain.

And why are native tokens so important?

Native tokens allow for massive upside potential. These tokens are where you can find undervalued assets that can outperform the rest of the market.

The crypto market average return on investment is basically just buying and holding BTC. We get into native tokens to outperform the returns that BTC is offering.

We are here to make a 100x, so we want to find undervalued native tokens. And yes, layer 1 tokens can also be undervalued.

Remember how we discussed in our last email about how loving your sector allows for you to dive deeper into your sector, gain more knowledge, and give you an edge over the average retail investor? This is where that separation comes into play.

Average retail investors are not diving into ecosystems and building lists of native tokens to invest in. They are not doing detailed research on the native tokens within a certain ecosystem, and they are not prioritizing certain ecosystems for deeper analysis.

Because of this gap, native tokens have potential to deliver an awesome product while still being undervalued relative to the rest of the market. When the true “altcoin season” comes, native tokens have potential to grow more as their value is realized by the rest of the market.

Let’s take Ethereum for example. Ethereum is a massive layer 1 blockchain. On Ethereum, there is a DEX called Uniswap and a lending protocol called AAVE. Do you think ETH, UNI, or AAVE has more potential to grow over the bull market?

In my opinion, UNI and AAVE would have more total growth potential due to their smaller market share, while ETH could provide better security, and less volatility, while still growing a ton.

Similarly, Cardano’s ADA token is worth about $15B at the time of writing. Native tokens on Cardano can have a market cap between $10-$50M. Which do you think has more total potential to grow?

So, how do you find native tokens in your sector to invest in?

1. Find the tokens within your sector

2. Build a list of potential investments

3. Filter the list down to hone in on certain investment criteria

The easiest way to find tokens in your sector is to find the best charting platform within your sector.

Some charting platforms to use on various ecosystems are:

Dexscreener - Ethereum & Solana

Taptools - Cardano

Vestige Finance - Algorand

The second easiest way to find tokens to invest in is by going to the most popular DEX in your sector and looking at the available tokens to trade.

Once you find those sneaky tokens, all you have to do is build a list of tokens that you want to research. These tokens are your potential native token investments.

If your sector that you love is DEX tokens on Cardano…make a list of DEX tokens on Cardano. If your sector is just all of Cardano, then make a list of some tokens on Cardano that catch your eye so you can investigate them further.

The major goal of this is to just build a list so you can filter out tokens you don’t like and find ones that you do like. Yes this takes real work. Yes it’s a pain and can be hard. But this is how you get a potential at a 100x.

You might be wondering, “well now what do I do with this list of random tokens”?

Don’t worry!

Here is the next email/post on Fundamental Analysis:

This is where the work gets even more juicy because you can start to cross tokens off of your list.

As always, send me a DM on X (Twitter) here if you have any questions.

Thanks,

Dawson