EOSDac is Waaaaaaaaaaaaaaaaaaaaaaaaay Overvalued after falling Over 50% Since June

in eos •  last year 

I've made made a huge mistake with EOSDac. I broke my own rule of Selling half of a gift horse immediately, but in all honesty I have not been able to find an exchange that will let me deposit this token :(. Yesterday I bought 10,000 shares of it, thinking it was a good dip buy, trading some KICK that was up 2.5 times in the past week. I found an Exchange that would let me buy it, but I thought better of it before withdrawal and bought VERI instead. Here is why you should not buy this token at anywhere near these prices (as of right now it is down about .0001071 ETH)

The Age old 7 Year Profit Valuation for a Business

A business is worth the profit it can produce for you in 7 years. What can 10,000 EOSDac do for you in 7 years? Well, currently, EOSDac which is one of the top 21 block producers (a position it is not guaranteed to maintain) and it rakes in 736 EOS per day. That means in a year it will rake in about 269,000 EOS a year. 

As a holder of 10,000 EOSDac, you will be entitled to 1/100,000 of that in theory or .00001 of the take, so that is about 2.69 per year (that's if they give you a straight cut without taking overhead out). A business is worth 7 years profit which would be just under 19 EOS.

So, as of right now, producing 736 EOS per day makes 10,000 EOSDac worth 19 EOS, but at a price of .0001071ETH($.045) per EOSDac, and with EOS trading at around $8, 10,000 EOSDac are currently trading at $450-$490, which is 56-61 EOS. 

BEAR IN MIND there is no guarantee that EOSDac will remain in it's current position, but it started at 21 and is now 14, so it has been working its way up. The highest block producer on the list, Bitfinex, is still producing less than 1000 EOS per day. Even at 1000 EOS per day, EOSDac would only produce 3.65 EOS per year for a 10,000 EOSDac holder, less than 28 EOS for a seven year valuation. 


If you can find someone, anyone who will buy your EOSDac at the current prices, sell the hell out of that coin. It needs to lose another 60% minimum before it is even a plausible wager. Until it reaches this point, it's inflated numbers will inspire more people to stake their EOS to vote for it, so it could easily lose the 14 spot and even drop out of the top 21. The problem is, every exchange that has EOSDac seems to have deposits disabled. I have tried 3,  all were in the top 3 volume wise and all three would not allow deposits. 

If you are reading this, and EOS has gone to $250, where it belongs and will probably be this year, and EOSdac is still a nickel, This might be a better buy, but at the current pricing the only future scenario where you do better buying EOSdac now than just buying EOS is if the EOS token holders vote for more inflation than is even currently allowed on the platform. I am not sure that is even possible, and if it were, I just don't see anyone voting for it.

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  ·  last year (edited)

American Expat, let me know when you get here? Not a spook by the way if you were worried about that.