Lecture 5.0.0. Practical Session:
How to Use the SOC 4-Year Scorecard
This Practical Session shows you how to use the SOC Scorecard and the market capitalisation to predict the futuristic growth of a cryptocurrency. We will use WSWAP as an example for the exercise.
WalletSwap is a mobile wallet designed for decentralised smartchains like Binance and Ethereum smartchains. It enables users to store, send and receive cryptos on these smartchains.
WalletSwap minted a token, WSWAP, which will be the utility token for the platform. As the utility token, WSWAP will be used for staking, governance, and paying transaction fees.
WSWAP was in its presale period in July 2021 and was then listed in exchanges the following month. You can read more about WSWAP from their official website, wswap.site, and also check blockchain explorer for its daily transactions.
First Question: Will WSWAP make good profits?
Second Question: How much of WSWAP should I buy to make one-million-dollar profit?
Answer to First Question:
Use the SOC 4-Year Crypto Scorecard to ascertain if WSWAP will be a profitable investment. See Table 4.
Therefore, from Table 4, by using SOC 4-Year Scorecard to analyse WSWAP, the answer to the First Question is that WSWAP is a Cautious Investment. That means you need to invest your money in the project prudently – only invest with a marginal amount to mitigate unduly high risk exposure.
Answer to Second Question:
Being a Cautious Investment, it means you can still make profit by investing in WSWAP. At the same time, be prepared for losses. The outcome depends on what the developers and their marketers do with the project.
Let’s say you want to take the risk and invest in WSWAP, how much of the token should you buy to make one-million-dollar profit?
To answer this question, use the Market Capitalisation to calculate the minimum amount of WSWAP that will produce one-million-dollar profit for you within the 4-year SOC Scorecard analysis as follows:
Market Capitalisation = Circulating Supply x Market Price
By correlating with the coins in the Crypto Market, you can infer an expected Market Capitalisation for WSWAP.
WSWAP is akin to Trust Wallet Token (TWT), which was launched in 2020, and SafePal (SFP) that was launched in 2018. The market capitalisation of TWT was about 400 million while SFP was 120 million, as at the writing of this article (September 2021).
During this same period, the market capitalisation of WSWAP was about 1.8 million. This was just one month after it was officially launched in August 2021.
Correlating the market capitalisations of TWT and SFP, we expect the market capitalisation of WSWAP to rise to at least 100 million within the 4-year SOC Scorecard analysis.
Based on this, we can calculate the Market Price of WSWAP within the 4-year SOC Scorecard analysis as follows:
WSWAP Expected Market Capitalisation = 100 million
WSWAP Circulating Supply = 6 357 423 802 499 (obtained from company’s website)
Therefore, Market Price:
= Expected Market Capitalisation ÷ Circulating Supply
= 100 000 000 ÷ 6 357 423 802 499 = 0.0000157296
That is, within the 4-year SOC Scorecard analysis, we expect the market price of WSWAP to be at least 0.0000157296 dollar.
This means within 4 years:
0.0000157296 dollar = 1 WSWAP
Thus, one million dollars will give:
1 000 000 ÷ 0.0000157296 = 63 574 407 486 WSWAP
The price of one WSWAP in the market as at the writing of this article was 0.0000001612 dollar.
Thus, 63 574 407 486 WSWAP will cost:
= 63 574 407 486 x 0.0000001612 = 10 248 dollars.
That is, if you invest about 10 300 dollars in WSWAP, you may reap about one million dollars within the 4-year SOC Scorecard analysis.
Important Note:
If WSWAP undergoes periodic burning, the circulating supply will decrease progressively and this will increase the price progressively. More so, WSWAP has good utility cases, hence, it will attract more traders.
All of these will increase the market capitalisation of WSWAP so much that you may realise much more than what has been calculated in the above example.
However, realise WSWAP is a crypto, and like most other investment, there is no guarantee that all these calculations will come out exactly as anticipated. Moreover, from the SOC 4-Year Scorecard analysis, remember that WSWAP is a Cautious Investment.
Therefore, the good advice is never invest what you cannot afford to risk and always do your own research before investing in any crypto project.