In this video I am going to talk about Kadena (KDA), where I think the price is going and what my exit targets are!
As of today, Kadena (KDA) has a current CoinMarketCap ranking of #54, with a live market cap of $3,535,494,901 USD. It has a circulating supply of 157,212,424 KDA coins and a max. supply of 1,000,000,000 KDA coins. KDA for those of you who don’t have it, can be purchased on the KuCoin Exchange.
When determining my exit prices, I will typically make them a multiple of my projection of the growth of the total crypto market cap. This multiple is determined by a few things:
1) Current market cap
2) Sector that the crypto is in
3) What exchanges it is listed on
4) The team, utility and token metrics
5) X-factor for example the clout/community that is behind the project
1st Exit Target is $33.66 – ranks KDA at #40 on the CoinMarketCap list. This is where I will sell 30% of my position.
2nd Exit Target is $41.36 – ranks KDA at #36-#37 on the CoinMarketCap list. This is where I will sell 50% of my position.
3rd Exit Target is $66.05 – ranks KDA at #22 on the CoinMarketCap list. This is where I will sell 20% of my position.
If KDA gets listed on Binance, I will increase these targets by 20%. If it gets listed in Coinbase I will increase by 10%
Congratulations to everyone that watched my video on Kadena and ended up buying KDA you would now be up about 273 in literally 10 days and if you’re in our mastermind you’re up probably much more than that because we were buying it right around 362 because there’s a guy named Dylan and our mastermind that brought KDA into the telegram chat and a ton of us bought hundreds of thousands of dollars worth of KDA so we’re now up right around 600 which is awesome.
I still love this project one of the biggest questions I’m getting about it now is hey when are you actually taking profit what are your exit prices and I’m going to show you just that because that’s something that I do every asset in my portfolio and my personal portfolio I have three targets on every asset in our hedge fund we have six targets on so I’m going to show you my personal targets for KDA during this cycle I think it’s going to perform at a much much higher rate over an extended amount of time but I’m going to give you kind of some logic here.
So first of all you never want to base your your targets and the price of a coin based on the current price of the coin right people always see like Shiba and it’s worth point zero zero zero zero four and they’re like if it just gets to a penny it’s not going to get to a penny because it’s already worth you know 30 40 billion so like what you need to understand is the market cap right the market cap of KDA right now is 3.9 billion dollars and the market cap the equation for it is the price of the coin so the 2507 multiplied by the circulating supply of the coin right.
So 157 million times the 2507 would actually give you the market cap of 3.9 billion now if you’re looking at prices over an extended amount of time you may want to factor in inflation I believe that the market cycle is going to be over the next two to six months so there’s not going to be that much inflation I understand that KDA does inflate relatively at a larger rate because it’s a new project and it’s a proof of work so they’re trying to incentivize people to mine KDA to decentralize a network and make it more secure so of course they need to give out more supply towards the beginning of the life cycle of the project but over the next 100 years.
It’s very similar to bitcoin it’s disinflationary so at first it released a lot of the supply and then it starts to even out over time and that’s just how the network works and I think it’s an intelligent way to do it some people are hitting on the inflation but I don’t hate on it because if you look in long term it’s a great way to incentivize a network to get stronger so anyways how I factor in the price is all based on the market cap.
So I try to get some really good contacts first and say well where do I think the total crypto market cap is going and I personally believe so right now at the time this recording we’re at like 2.8 trillion dollars of where the market cap currently is I think the mark cap is gonna go up another about 167 percent which would bring the market cap right around 7.5 trillion by the end of this cycle which again I do believe is in the next two to six months so we’ll see if I’m correct but I base most of my price targets based on the growth of the overall market gap so I think you know even if it’s just a an okay coin that already has a large market cap.
It could likely have right around 167 percent increase but if it’s a great project that has a great team behind it has really strong tech and it has a small market cap well I believe that the market cap could grow substantially which then would grow the price of the coin or the token right so the smaller the market cap that a that a coin has the more potential growth it has that does not mean it’s going to have that amount of growth but it does mean that there’s more potential because if you’re looking at projects that have you know less than a billion dollar market cap that just means they have less money in them which typically either means that they have less conviction in them and belief in them because not much capital is actually flown into it or it’s a highly undervalued project which was Kadena.
That’s what we always look for in our research when we’re looking through projects that we want to buy which we do a lot on massari.io and we can we just go to screener we go to smart contracts and then we view different smart contract platforms and then we will actually look at and we can sort by the market cap and start to go through each one and look for the team the token metrics the utility and then decide if we actually want to invest in it or not right.
So that’s one way that we’re actually finding the projects that’s a whole other video that I can go into but how we actually identify the market cap is looking at where it could potentially go understanding the overall market cap and then saying okay well where do I believe based on other assets that you know KDA can go so let’s go ahead and look at KDA on the current market cap which again it was ranked number about 50 and it’s ranked you know it is exactly 50 at 3.9 billion dollars and I’m going to show you my exact target exits here in a second but if KDA was at the market cap of bitcoin which is 1.2 trillion dollars KDA would be worth seven thousand eight hundred and ten dollars.
If it was Ethereum three point five thousand dollars if it was binance’s coin mark capital of 105 billion dollars would be worth 670 I don’t believe it’s going to get there and the reason is because somewhat of a newly identified project there’s not many developers building on top of it yet because not many of them know even that the project exists number one and number two if you go ahead and look at markets it’s not on major exchanges by far the biggest exchange is Kucoin right.
So I’m about to show you some targets but if it goes on to Binance or coinbase specifically Binance and I’ll show you why is because if you look at exchanges and let’s say there’s no derivatives involved whatsoever on on KDA but if you look at Binance it by far has the most amount of volume this is a really crappy day you see there’s only we’re down 31 of volume so it does it does 33 billion dollars in the last 24 hours coinbase does 6.5 billion and q coin is all the way back here at 3.5 billion so we’re literally going to have not a 10x in the price of the coin but there’s a 10x increase in the amount of volume running through Binance relative to Kucoin.
So if it does get on Binance and coinbase I am going to raise my target slightly right so where do I believe that KDA is actually going to go I will do an analysis similar to this where I say okay where do I actually believe it is a reasonable price to go and I always base it again on the market cap and how high I think it can go during this cycle so if it stays on Kucoin and it does not get on major exchanges.
I’ll show you exactly how I do it which is this so I have all my price targets here I share with our our private groups every single asset that I buy I show my overall portfolio allocation and then share all my exit targets and I’m somewhat of a conservative investor and here’s the thing is most people never take profit in crypto then they operate emotionally as well so they think that the the price expectation and how high things can go they have no game plan going into it and they get super euphoric and they hear this word called super cycle or they think that the market is never coming down and they never end up selling and then once the market actually starts dropping then they start to sell.
I would personally rather look at okay what is a logical market cap that this asset could have and then base my exit targets based on that type that size of a market cap so I did this right I bought the coin at a much lower rate than 6.96 but I did this analysis when the price of KDA was 6.96 at a 1 billion market cap so based on that where I think I can go I believe my first exit target is at 33.66 which would be out of about a 5.2 billion mark cap so let’s go see how high that would actually be it would put us right where about Tezos is which would rank us about 40 on the market cap list okay.
So I do believe which would be you know a little it’d be a little bit higher than that so if we were exactly at Tezos right now we’d be worth 32 dollars and 60 cents all right my next exit target so by the way I’m selling 30 of my position there so I don’t believe that I am a perfect Jedi I don’t think that it’s ever possible for me to ever time the exact top of this wick right here right.
Some people they always look hindsight thinking like oh well I would have sold here it’s like oh would you have really sold there most likely not it’s very very rare that you ever very you know time the exact top of the market or the price of an asset and I don’t think I’m a Jedi either so what I do is I strategically dollar cost average out of the asset at set prices not based on how much I want to make by the way based on how high I believe the market cap can go based on social sentiment based on the technology based on the team based on the exchanges.
It’s on based on all where I think the overall market cap is going so my first target is to sell 30 of it at 33 and 66 cents that’ll reduce my risk of it potentially not going you know much higher than 33 dollars I think I’m very probable to hit that target so I feel comfortable selling about 30 of my position there my next target I do think is obviously a little bit more difficult to hit than that target but I do I feel much more comfortable selling a larger position there because based on the probability.
I do think it’s very probable that the market cap goes to about 6.4 billion for KDA which would put it at about phantoms market cap so phantom is about 6.6 billion actually put it closer to near so I’d put it right around you know 34 to 36 actually it’d be closer to h bar and die I put it right around you know 36-37 on the market cap which would price the asset at about that target of 41.36 so I’m gonna sell fifty percent of my position and by the way when I do this I just set limit orders.
So I literally go into exchange I set a limit order that lowers the fee that you pay if you want to lower the fees you’re paying on exchanges stop submitting market orders and if you want to buy out of current price you click on the order book and then you can just literally hit set a limit order and it’ll sell at the current market price but using a limit order which reduces your fees okay so I set limit orders on these things number one to remove the emotion of investing and selling an asset and number two is to lower the fees okay.
So I set limit orders on these so I’ll sell 50 of my position at 41.36 and my last exit price will be a 20 I’ll sell my last 20 of my KDA at 66. in 5 cents which would put it at about a 10 billion market cap which would take the price and the market cap all the way up to about v chain which is about ranked number 22 on the market cap list and again that’s where I’ll be selling my last 20 which I will be well over an 836 percent increase and in likely a short amount of time if the prices go up to that so is that 66 bucks.
I mean how I let’s even see how high that that is I mean it’s it’s pretty ridiculous to be honest let’s see what the actual gain is from what we bought it at which was like three dollars and and sixty cents so we’ll take it right from I’m not gonna be able to get it exactly so we’ll take it from there and 66 dollars so we literally be at a 1700 increase all right.
So some people you know they they get really ridiculous and when you get too greedy on your expectations and where you want to take profit a lot of times you’re gonna completely miss and some people I’m telling you if you don’t have a game plan going into exiting on certain positions you want to sell.
I’m not selling all my crypto I’m selling the vast majority of my all coin positions because I understand what happens after when we have a massive bull run I understand the amount of volatility that’s involved in this market and I think it is absolutely idiotic if you do not take some profit during this time right because look at this amount of volatility right.
We have a ridiculous increase when you’re watching this video actually I’m making this video right around the early of November we have an 816 increase in 2017 and literally 56 days and then if we look at after that we literally have about a 92 percent drop after that so if you do not take profit I think it is incredibly you know imprudent as an investor and an asset allocator maybe you’re just a long-term holder right and maybe your situation is completely different than mine but like I’m gonna take profit on positions that I have a 1700 increase on all right and this is kind of what my profit taking will look like right let’s say that this is like Kadena right.
It’ll be like I’ll take some you know 30 here I’ll take 50 here and then I’ll take the last you know 20 here right and I’m completely fine with that right if I get anywhere close to that I’m happy right because then I can just re-buy the dip I can go my buy mining equipment I can go buy real estate I can offset my taxes that way by accelerating the depreciation of that equipment or that that real estate property against my gains here I can go invest back into my businesses.
I can go do other things right so I’ll do other things with the capital and again I am going to be huddling definitely bitcoin earning interest and a few other small positions in all coins but primarily I’m taking likely a fair amount of profit this bull market so hey let me know if you’re holding KDA down below what is your exit targets where do you believe the assets going by the way like I mentioned earlier in the in the beginning of this video.
I love the project I think it has massive potential I do plan on being a very very long-term holder in the future after we head into likely a bear market after we have some increase like this and I do plan and I do see the price of KDA going much much higher than the prices that I’m selling at in the next cycle in the next you know four to five years so let me know what your exit targets are are you a KDA hodler are you taking profit let me know in the comments section below and I’ll see you here on this next video.