HGT analysis - Part 2: Buy HGT now! Earn up to over 36% IRR.

Let us recap. In our article 2 weeks ago, we talked about how the HelloGold Token (HGT) price movement does not affect absolute cash inflows, as well as the huge potential internal rate of return (IRR) (on average 28–29% p.a) when HGT was offered to supporters @ $0.024. What if you buy HGT now? Simple — a HGT supporter/buyer is in an even better position now @ $15.88 per 1000 HGT (at time of writing). Here’s why:

Before we start our discussion, let’s revise the factors that affect HGT return:

Gold Price (Covered 2 weeks ago)

Asset Under Management Growth Rate (Covered 2 weeks ago)

Entry Price (This week’s focus)

HOW MY ENTRY PRICE AFFECTS MY HGT RETURN?

     
                        Figure1: HGT Return (%) against Change in Entry Price

Given HGT price of $15.88 per 1000 HGT (as at 11 morning of December 2017), with this price, a new HGT holder will be able to earn an ultimate return of +1454% over the lifetime of RewardGBT(8.80 years) as stated in part 1 of the analysis, or 36% per year. This is approximately 1.5 times higher than the return compared to buying HGT during token sale.

IS HGT’S VALUE EQUAL TO ITS PRICE NOW?

Put simply, it’s definitely not. HGT is very much underpriced right now . The question is: by how much? The HGT with the potential RewardGBT that it can receive will give you a present value of the equivalent cash flows for each token of approximately $0.04. The calculation is done by using the sum of the discounted future RewardGBT equivalent cash flow and assuming rate of required return is 20% (above average return), as shown in table 1 below:

      
                                     Table 1: Cash Flow per every 1000 HGT

The table above also shows the PV of net profit that a new HGT buyer can receive for every $15.88 they invest in HGT, which is $24.07.

Our next article will delve deeper into the value of the HGT and its hidden benefits, as we will analyse HGT return with different asset backed tokens added into the reward pool of HGT.

You can buy HGT at:
1. ETHERDELTA
2. HITBTC
3. COSS
4. RADAR RELAY
Details for future offerings of HGT can be found here.

Note: Rewards to HGT holders are given at the discretion of the HelloGold Foundation. To date, the Foundation has distributed rewards at a monthly basis.

The HelloGold Foundation Team