Dear Reader,
Cryptocurrencies are a hot topic since the last five years. Many people have invested in crypto tokens or with other word cryptocurrencies.
But how to value cryptocurrencies? What are exactly cryptocurrencies? Cryptocurrencies are essentially tokens related to the performance of the respective company. However, different to equities you do not have the last claim on the company's assets - liabilities after senior, junior bondholders and preferred shares.
Having in mind that, I propose the following rule of thumb. First, value the company's equities. Once you have a number for a company's share just multiply that value by 4 or 5 to get the value for the company's cryptocurrency, provided that the number of tokens and shares are the same. Or with other words the company's value is worth 4-5 that in cryptocurrency of the company.
The volatility of cryptocurrencies can be both a curse, but also an opportunity.
Disclaimer: The blogposts and
comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook
etc.) are not investment recommendation, are provided solely for
informational purposes, and do not constitute an offer or solicitation to buy
or sell any securities. The opinions expressed on the blog are Petar
Posledovich's. Petar Posledovich does not
guarantee the accuracy of the information presented on this blog and social
networks. The information presented is "as is".
Petar Vladimirov
Posledovich is not liable for any investment losses incurred by reading and
interpreting blogposts on this blog and posts on social networks.
Conflicts of interest: I may
possess some of the securities, currencies or their derivatives mentioned in
the blogpost and
posts on social networks(Twitter, LinkedIn etc.)!
Respectfully yours,
Petar Posledovich
No comments:
Post a Comment