## What is the art of discovering hidden gems: from theory to practice

In the vibrant crypto market, finding tokens with explosive potential is not a matter of luck but a matter of methodology. So what exactly is a hidden gem? It is projects that are outside the spotlight but possess strong growth mechanisms, often linked to new technological trends within the blockchain ecosystem. The question is, how to identify these gems before the market recognizes their value?

### Trends are the foundation of every pump

The foundation of any explosion in the crypto market starts with a trend. It’s not just theory but the natural law of speculative markets—where attention flows, capital follows. For a hidden gem to have significant growth, it must be part of an emerging or soon-to-emerge trend.

A truly promising trend must meet the following criteria: first, it presents a novel story with clear applicability; second, it is easily viral and attracts the masses; third, it is supported by genuine technological platforms; and finally, it creates confidence that this is the future where investors can make substantial profits in a short time.

### Memecoin: The exception in the system

Memecoin is an unusual phenomenon because it bypasses most of the above criteria. Memecoin does not require groundbreaking technology, practical application, or even a professional whitepaper. Its only appeal is the expectation of price appreciation, directly reflected on the surface— the most primal market belief.

However, aside from memecoin, any trend originates from technological innovation. Blockchain is the fundamental platform, and every improvement or creative breakthrough has the potential to trigger a major growth event. For example, ERC404 earlier this year proved this point.

### Filtering process: From broad to narrow

After identifying promising trends, the next step is to analyze projects within each category in depth. You need to evaluate which projects are truly important, which have good growth mechanisms, and which might turn into Ponzi schemes. During this process, build a shortlist of standout projects for easy comparison.

With a preliminary list in hand, start categorizing based on basic criteria: product, technology, trusted investors, core team. Most researchers will narrow down the list to 2-3 projects with real potential.

### Ecosystem determines destiny

A good project in a poor ecosystem is just a gem at the bottom of a well—no light can escape the surrounding mud. Therefore, before deep-diving into each project, you should evaluate the entire ecosystem it operates within. This step helps filter out projects truly worth in-depth research.

### Deep analysis: The most time-consuming part

Steps 1 to 3 are relatively quick if you keep up with the market. However, when deep-diving into specific projects to make investment decisions, you will need to spend considerable time and effort. This is the moment to conduct fundamental analysis—study tokenomics, economic models, team history, and the actual potential of the product.

This process may seem lengthy on paper, but with experience, you will realize it’s an effective system to discover what a hidden gem is and why it will explode. From catching trends to final project filtering, each step builds a foundation for smart investment decisions.

In the upcoming super cycle, I hope you will use this process to seize the earliest opportunities. 🍌