Leveraging the Cryptoeconomic Machine.steemCreated with Sketch.

in cryptocurrency •  11 months ago


A Fundamental Valuation Framework for Investing.

My friend Wesley Pryor asked me to share this with my Crypto community. Wesley is probably the best fundamental Crypto Currency investor I know. His charting skills have made me and my Crypto trading group a ton of money over the last year. If you are serious about Crypto Currency investing or just want to educate yourself then take the time to read this paper. Thank you Wesley and David!

Abstract from the Paper.

It has become de rigueur -- even clichéd -- for financial analysts to warn of bubbles in the crypto-asset space. By nature crypto-assets generate no traditional cash flows or operational financial metrics such as earnings and EBITDA that may be used in conjunction with traditional fundamental valuation techniques. For lack of a functioning valuation model for crypto currencies, some analysts have defaulted to the assumption that inherent value must not exist. The incline of the price increase alone is considered sufficient evidence of a market bubble.

This assumption is inaccurate.

As in all markets, overvalued assets exist in the crypto space. Key fundamental drivers of token price may be defined, quantified, forecasted, and benchmarked to determine a crypto-asset's intrinsic value and attractiveness as an investment.

However intuitive, our position has not been a popular one. The cryptocurrency community has struggled to reach consensus on the metrics that should be captured and translated into a token's market price. Some argue that tokens have no inherent value and should be considered worthless. Others rely on analogies to gold's utility as a store of value or, eschewing fundamental principles of economics, believe that the market opportunity presented by crypto-assets should cause prices to move parabolically in perpetuity. As of late, investors have begun to use a rudimentary model of technical analysis, qualitative assessments of technology features, and the intensity of news coverage to guide their valuations. These attempt are largely descriptive and incorporate little insight into the fundamental impact of underlying drivers on token assets valuation.

Our investing philosophy is that tokens are no different than any other financial asset. By understanding and measuring the way in which these value drivers translate into token price, we may assess the intrinsic value of crypto-assets to make stronger, more informed investment decisions.

By David Grider, CFA and Wesley Pryor, CPA

Read Leveraging the Cryptoeconomic Machine Here.

Visit Aenigma Capital

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It is only 20 pages so I am going to read it, as coming from you I am sure that it is valuable information. Hope this will prepare my trading knowledge for the time when I will have enough funds to invest. Thanks a lot!


This is how we level up in Crypto knowledge.


I really hope I will level up my knowledge. You are already a master :))


I wish, my skills are still lacking. I lose regularly.

I'll have to read this when I get the chance. Metcalfe's law seems to be one of best indicators for crypto but there's so much more. Community behind the coin seems to be a big one, roadmap, features, exchange listing, ECT. Many times these coins are moving months in advance of big software upgrades then sometimes the market does not react until after. Market in crypto is still very immature as many cryptos are priced wrong but its like a magic wand comes along within 6 months or so and brings the value down or up closer to where it should be.

'Aenigma Capital' first time heard about them. But your abstract about their content has proven they are expert in Crypto. Useful update about them~

Great information.
(((((( Resteem Service))))))

Thank you for sharing. I think more information about crypto currency is always good.

thanks @hilarski for updating such a useful informations. good work always do efforts for the development and and promotion.love your work.

Informative....Thanks for the information and helpful .
Outstanding perfomance for bitcoin...
Thank's for sharing...

@hilarski - Sir you are always helpful to the community.... Inspiration, updates, new ICO information are very valuable thing for us.... I'll check the whole article of our friends'..... Nice you decided to share this information Sir....
To get more audience, I wish to ReSteem your post.

+W+ [UpVoted & ReSteemed]

Such a valuable and important information you give to us @hilarski. You also better work to do steemians and nice development work. Great skills and great effort from you to steemit providing task.
Resteem your post.

"Our investing philosophy is that tokens are no different than any other financial asset."
You are absolutely correct! Shame I never heard about "Wesley Pryor" before! I hope to follow them and thank you very much for sharing this valuable article with us! Really appreciate your effort!


excellent article with impressive abstract of the paper. nice sharing @hilarski


nice post, full of knowledge and information, this article is surely helpful to understand the cryptos investing, i download it's pdf version consists of 19 pages, thanks for sharing

Greatest informative post @hilarski. Nice description about cryptocurrency investment. lot of risk here but you giving some information how to invest without doubt.

I believe that tokens have real value unless the whole project is a real scam.

What value drivers is he alluding to in the last paragraph of the post? @


Read the whole paper at the link. I did not want to copy the whole paper.


Gotcha, just gave it a read. Thank you for sharing.

Great information of crypto news . thanks for sharing.

Upvote Resteem

This is going on my reading list. I'm committed to learning graphing skills and value analysis in the crypto space.

My father wants to get into investing and is paying all these scammy stock brokers, hoping they will give him the one secret he needs to get rich. That is not how things work and opportunity in the stock market is far less than in the crypto space.

A profound understanding of the fundamentals is the key to sustainable success.

FYI, I heard a rumor that DGB might pop up 10X based on some upcoming news regarding merged mining. I'm throwing more than a few dollars worth of BTC at it as it looks like BTC is tanking for a bit. If the rumor turns out to be true, it should happen in the next few days.


Thank you, I just bought a chunk just in case and put in some orders. DGB treated me very well in the past.

thanks a lot @hilarski for sharing such informative articles with us.

Token is a real asset. If project made the success, token it is the worthiest investment ever. Excellent article & never heard about Aenigma before.

~Followed & Upvoted

Excellent Post @hilarski thanks for sharing

thanks for information! bitcoin, How much can we buy in this token


Cryptocurrency market news
thanks for sharing. ......

learn something new from this post, love to read it...

Excellent post and good news.
Upvote Resteem

Hello @hilarski,

Very useful article for the whole crypto community. You made an extraordinary good summary about it.


Good update and very useful information.
100% like and resteem

This is valuable post. thanks for the information
Have a great day

amazing post thanks for sharing


For your post propagation.

Congratulations @hilarski
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Exceptional article with lots of good news to crypto investors...!!!

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Great update about crypto currency investment. Full information indeed here. That would be great one. Need to study more.
Excellent post @hilarski

Great job my dear friend.go ahead.best of luck.

crypto is a great way

Your all articles ,I read from start to bottom it's really very helpful for like us if he read it. And request to other Pls read it first. Then comment its help you other way. Thanks

good information about Framework bro

Thank you for this valuable information. As always, very helpful!

Nice information

Thanks for sharing all this stuff!
I'm a newbie in the whole cryptoarea and your information are very useful to get deeper and deeper into the crypto world!

Keep up the good work!

Upvoted and followed :)

How much can we buy in this token
thanks for information! bitcoin.....////////

On the recent surge in bitcoin prices, which leapt to an all-time high of $7,601 at the weekend, he added that a correction would help "strengthen" the industry going forward.

Moving on to discuss China's recent restrictions of cryptocurrency trading, Lubin, said that he sees the move as a "pause" and not a ban. Instead, the regulatory move, he said, is positive news marking China's recognition of the importance of the industry....@hilarski

really nice & mind touch blog..

Good post regarding crypto investment

Hey, you have come .with a great information about cryptocurrency..i have visited Visit Aenigma Capital...and submitted a messege..
Thank's for sharing.

@upvoted and followed

Thank you for the link. Reading it now. As can be seen with the volatility of cryptocurrencies, the valuation process is tough to measure.

Very useful blog dear sir

Thanks for these points really useful :)

There is so much happening on Cryptoeconomics, soon universities will provide courses specifically on crypto tokens.

Agreed Boss @hilarski i must say its really helpful to understand cryptos

Our investing philosophy is that tokens are no different than any other financial asset. By understanding and measuring the way in which these value drivers translate into token price, we may assess the intrinsic value of crypto-assets to make stronger, more informed investment decisions.

100% Agreed with the philosophy !

Always reading, always learning so thanks Randy @hilarski and wishing you a wonderful weekend.

At its core, bitcoin is a smart currency designed by very forward-thinking engineers. It eliminates the need for banks, gets rid of credit card fees, currency exchange fees, money transfer fees, and reduces the need for lawyers in transitions... all good things.
Thanks 🙏🏻 for sharing something on crypto currency 💴,all your information are geat I know this one will not be different, I know you are a forward-thinking engineer

Bitcoin will take the store value market share from gold like taking a candy from a baby!