Famous Executive Announced Altcoin Basket and Strategies!

A 25-year-old crypto founder who bought Solana in 6-digit amounts for around 33 cents and the popular altcoin Polkadot for under $1 shares a 3-part strategy for identifying winning altcoin projects early. The investor explains how he tried to build the “Finance Diamond”. Yubo Ruan is the founder of Parallel Finance, a decentralized lending and staking protocol. Through his VC fund, the 25-year-old made early investments in top altcoin projects like Solana and Polkadot. He shares how he will determine the winning protocols and how he plans to bring DeFi to a billion people. Detail cryptocoin.com‘in.

How to create altcoin basket

25-year-old Yubo Ruan has probably accomplished more than his peers could have imagined. While in high school, Ruan won 13 invention awards and five patents, while he founded his first company, Alisimba Technologies, in Beijing, China. In college, he founded Skylight Investment, the first venture capital fund to invest in disruptive technologies. In 2017, he launched his second VC fund, 8 Decimal Capital, to focus on blockchain and crypto companies. Now, the serial entrepreneur is trying to achieve his highest goal ever: to provide decentralized finance to one billion people through his loan startup Parallel Finance.

Built on the Polkadot ecosystem, Parallel Finance is backed by leading VC investors. Ruan learned about crypto in early 2014. At the famous Garage Café in Beijing, while working on his first company that used to accept Bitcoin as payment, he met a group of Bitcoin and Ethereum miners who would later become one of the world’s biggest crypto players. This experience taught him the importance of being early. In 2019, while managing $60 million in VC funds at 8 Decimal Capital, he made a six-figure investment of around 30 to 33 cents in Solana (SOL) and over $1 million in Polkadot (DOT) $1 million, according to Ruan. shed the dollar. As of Friday afternoon, Solana, the fifth largest cryptocurrency by market capitalization, was trading at around $148, while Polkadot, the 10th largest token, was changing hands at $27 according to CoinGecko pricing.

How to identify winning crypto projects early?

Alongside the two clear winners, Ruan also participated in the first rounds of Chia (XCH), Chainlink (LINK), 0X (ZRX) and digital asset firm Securitize. In trying to identify projects with long-term potential, it focuses on three factors: (1) network effects, (2) reasonable rather than cheap evaluation, and (3) quality of the builder. Network effect, a concept quite familiar in technology and crypto, expresses the idea that as the number of users joining a network increases, the value accrued increases. While social media platforms like Facebook, Instagram and TikTok demonstrate the power of network effects, major cryptocurrencies like Bitcoin and Ethereum have also become more valuable as more people join the networks.

Contrary to conventional wisdom, Ruan likes to invest in projects with valuations that may seem expensive. Rather than focusing on cheap assets, he believes higher valuations could signal projects gaining better consensus and greater investor confidence. “When we invested in Solana, it was worth several hundred million dollars, even though it was 33 cents. “It was pretty crazy back then because it was pretty expensive for a network that didn’t launch anything,” he says. Ruan said it was a similar story with DOT, where he invested under $1 but with a valuation of over $1 billion. The valuations also made sense to him because of the founders’ track record. “I gave at least 40 percent weight to assessing who the founder is and what he’s done before. “We really think that entrepreneurs who have created great creations will continue to create better products in the long run.”

Currently, Ruan likes StarkWare, the Ethereum layer two scaling network. The Israel-based company recently achieved a $2 billion valuation after raising $50 million in a funding round led by Sequoia Capital. To be sure, Parallel Finance is building on top of one of StarkWare’s StarkNet products. These days, Ruan no longer actively invests in crypto projects. It is 100% focused on making Parallel Finance the “Apple or Google of Finance”, with the goal of bringing DeFi to one billion people. Still, the young founder has a lot to prove. DeFi, which refers to financial services activities automated by software, is notoriously difficult and complex to navigate.

According to DeFi Llama, Parallel Finance, with a total value of approximately $700 million, has a niche market dominance as the largest third-party program in Polkadot. Ruan said that in order to increase its 100,000 global users to one billion, it plans to establish a one-stop ecosystem where users can conduct all kinds of financial services activities related to DOT token assets. The company will also set up a permissioned app store to root out scams and scams.

Eventually, Parallel Finance will expand to other chains besides Polkadot. For now, it focuses on making the platform easy to use, efficient, scalable and compliant with regulatory requirements. “We are really interested in creating a holistic ecosystem where users can do everything from payments to earning returns to derivatives trading with one click when they log in with their wallets,” the investor said.

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