For the purpose of evaluating companies and stocks, one of the popular methods is “The Comparable Approach”. Companies with the same characteristics are compared on a number of ratios such as Price/Earnings and Price/Book Value. A similar method can be used when assessing the potential of crypto assets.
The following framework was used for analysis of the crypto asset Basic Attention Token. The method uses target market value, projected market share and a ratio for comparing price/utility with another cryptoasset.
Two inputs are used:
- Target market and potential market share (Online advertisement)
- A ratio in line with P/E, P/BV ratio used in stock markets (Daily Transaction Velocity)
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