How to Find Out if a Crypto Token is Worth Its Trading Price

Delphi Digital’s Jose Macedo and BlockTower Capital’s Ari Paul talk about why a crypto asset can be priced very differently in the public and private markets, and how they try to figure out what it’s really worth.

Posted July 2, 2024 at 12:00 PM EST.

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The problem of low float and high fully diluted valuation (FDV) coins is one that is often discussed in crypto. But there is another problem: investors need to understand the unrealized gains of these coins to truly understand the price.

In this episode, Delphi Digital’s Jose Macedo and Blocktower Capital’s Ari Paul explain the various metrics that reveal a coin’s true value, why a wave of token unlocks hitting crypto markets in the coming years isn’t bullish, and whether there’s a better way to design token unlocks for teams and insiders.

Additionally, they discuss whether venture capitalists are extractive cryptocurrencies, whether these circulating supply and FDV plays have caused investors to flock to memecoins, and why they believe the ICO era has been better for retail investors.

Program Highlights:

• Why Upcoming Token Unlocks Are Creating Market Jitters
• How the Ratio of Unrealized Gains to Market Capitalization Influences Token Price Movements
• How Some Token Projects Manipulate Their Reported Circulating Supply
• Whether and how ordinary investors can discover the truth about token projects
• What Secondary Market Trading Says About the Potential Impact of Upcoming Token Unlocks
• Why Jose believes the current token launch strategy, despite its flaws, is still favored by insiders and is unlikely to change any time soon
• Why some projects favor decisions that are more likely to result in short-term gains than long-term success
• Why Jose believes simple time-based token unlocks often work better than complex metrics, and how projects can balance funding with realistic success metrics
• Why Ari believes the SEC’s investigations into VCs for acting as securities brokers may be justified and how these practices resemble pump-and-dump schemes
• With multiple token unlocks approaching, why is the outlook bearish for many projects and what challenges do they face in mitigating potential liquidations?
• Why Many Crypto Investors May End Up Holding On In The Current Cycle Despite Plans To Sell Early And Avoid Losses
• What is the future role of VCs in crypto and how the influx of token unlocks and the rise of memecoins could shape the bull cycle

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Guests:

• Jose Macedofounder of Delphi Labs
• Ari PauloCIO of Blocktower Capital
  • Previous appearances in Unchained:

Connections

High FDV and unlocks:

Solutions:

Source