March 11, 2025
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Table Of Contents:
As a Trader or Investor, the most critical thing you want is to multiply your capital, like the parable of talents.
This is why venture capitalists usually take the risk and invest in startups where there is opportunity to grow their capital in multiples as opposed to mature companies which are good for cash flow but don't offer high growth opportunities.
Hence the common saying, "Buy Low, Sell High" or as some say, "Buy High, Sell Higher".
For example, if the target peak price is $100 and the current price is $10. The multiple is obtained by dividing the Peak Price with the Current Price, e.g. $100 / $10 = 10X. This implies that if you invest $7 and bought an asset at the price of $10, then at peak you will have $7 * 10 = $70. However, if you wait for price to go to $20, then $100/$20= 5X you will have $7 * 5 = $35.
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The Paradox of Multiplier - Capital Gain Assessment
The Higher the price, the lower the multiple and the lower the price, the higher the multiple. This is why traders or investors look for the lowest possible price to enter the market. Low prices favour those who are targeting capital gain or cashflow through dividend E.g.:
$100 / $1 = 100X $100 / $2 = 50X $100 / $5 = 20X $100 / $10 = 10X $100 / $20 = 5X $100 / $50 = 2X $100 / $75 = 1.3X
The larger the market cap, the lower the volatility and the lower the anticipated multiple as the instrument has reached maturity (like a big slow river as it exists into the ocean) - a low-risk, low-reward opportunity, it’s good for large capital where the goal is to get consistent cashflow, if dividend paying. Common in older established industries. The smaller the market cap, the higher the volatility and the higher the anticipated multiple as the instrument is in the growth phase (like a small rapid river as it starts in the mountains) - a high-risk, high-reward opportunity. It’s good for small capital where the goal is to grow the principal. Common in new industries. </aside>
When the price is at $1 there's a lot of fear. Most shy away but the bold take the move. When the price reaches $50 or $75 that's when there's a lot of hype but it's usually too little to be expected and too late to be buying. Thus this saying becomes true: "FORTUNE FAVORS THE BOLD".
My recommended opportunities is to buy CRYPTO SPOT for the following due to very high expected multiple and good liquidity:
• CAKEUSDT • XVGUSDT • SUIUSDT
The reason why you should buy spot as a priority and default, over futures or derivatives, is because a majority of people are not skilled enough to handle the incoming volatility nor prepared psychologically for the drawdowns. Those with futures and/or derivatives should also consider spot to bulletproof their portfolios.
Here is the analysis:
| CRYPTO | ~Current Price 20250311 | Previous ATH 2021: | Expected ATH 2025 | Multiplier (Worst Case) | Multiplier (Best Case) |
|---|---|---|---|---|---|
| CAKEUSDT | $1.531 | $44.278 | $23,151 | 28.92X | 15,121X |
| XVGUSDT | $0.004469 | $0.08 | $26.37 | 17.9X | 5,900X |
| SUIUSDT | $2.1657 | $5.3687 (2025) | $7,114 | 2.47X | 3,284X |
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NOTE: Multipliers are based on prices as at 11th March 2025. As price increases, multiplier reduces significantly.
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Here is an example that can be used of crypto multipliers: Progress Report - Crypto 2021 to 2025 Cycle
Let's assume the following:
Price going to Previous ATH as our Worst Case Scenario. Because BTC recovered to 2021 Highs so Alts will also follow through.
Price forming new ATH as our Best Case Scenario. Because if BTC has formed new ATH against 2021 Highs so Alts will also follow through.
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Return to previous ATH with no new ATH
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| Crypto | Multiplier | Proposed Allocation |
|---|---|---|
| CAKEUSDT | ~25x | 62.5% |
| XVGUSDT | ~15x | 25% |
| SUIUSDT | ~2x | 12.5% |
Example, with $100
• CAKEUSDT : $100 * 0.625 * 25 = $1,562
• XVGUSDT : $100 * 0.25 * 15 = $375
• SUIUSDT : $100 * 0.125 * 2 = $25
Total: $1,962
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Return to previous ATH and forms new ATH
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| Crypto | Multiplier | Proposed Allocation |
|---|---|---|
| CAKEUSDT | ~15,000x | 62.5% |
| XVGUSDT | ~5,500x | 25% |
| SUIUSDT | ~3,000x | 12.5% |
Example, with $100
• CAKEUSDT : $100 * 0.625 * 15000 = $937,500
• XVGUSDT : $100 * 0.25 * 5500 = $137,500
• SUIUSDT : $100 * 0.125 * 3000 = $37,500
Total: $1,112,500
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