David Zimmerman looks closer at the prospects and investment opportunities in crypto gaming. Crypto gaming tokens provided opportunity for astronomic profits in the last bull run, but you had to sell in time! Will it be different now?lg...more
Few analyze the value of a cryptocurrency by looking at the drivers of- and the sizes of the value capture mechanisms. Cryptocurrencies have value capture mechanisms that should reflect the crypto’s value over time. We have constructed a high-level framework for assessing token prices to look closer at this largely uncharted territory.We conceptually divide the fundamentals of a token price into three main components:
Persistent Financial Premium (the store of value component)
Money Function (the medium of exchange component)
Access Utility (the use of a token to access utility)
By analyzing the potential for value capture from these three pillars, we can provide insight into the fair price of a token.