Overview
- Token Valuation mini-series #01
- BTC: headed towards major support.
- Ether (ETH) staking for institutions
Good Morning Banter fam,
While we slush through the snowy depths of crypto winter, it’s time to begin preparing for the next major cycle. With many tokens having reached year-long lows, there are some screaming deals. But how can you weed out the good from the bad?
My best answer is token valuation.
How to value a token checklist (Token Valuation Mini-Series #01)
As crypto will likely be a disruptive force in the future, some innovative projects possess incredible potential, but for every great project, there are ten terrible ones.
So, to help spot quality projects, I devised a system (with various inspirations) to help value digital assets. The system consists of the ten aspects below.
The top ten aspects of valuing a project token.
- Use case (purpose)
- Team and technology
- Tokenomics
- Ecosystem
- Major Risk
- Growth potential
- Uniqueness
- Price upside
- Competition
- Disruption
Each of these elements plays a significant role in the long-term success of a project and its token’s price appreciation.The analyst’s role is to locate all information, analyze it and then make the ultimate decision. Of course, no project is perfect, and there are trade-offs to weigh. For example, a project could score great in nine aspects, but if tokenomics stink, the price will likely struggle in the long run.
Today’s section serves more as an introduction; in the coming weeks, the newsletter will cover each aspect. Think of it as an ongoing mini-series! By the end of the series, the reader should be one step closer to possessing supernatural abilities for identifying great projects (and ones to avoid) that merit a degen-style investment.
Market update 🌍
The chop continues in traditional markets and crypto alike. The Nasdaq 100 and S&P 500 experienced -3.09% and -2.01% declines today, while BTC fell 1.95%. In addition, all three assets have put in lower highs, indicating a continuing downtrend. Nasdaq 100 (NDQ) chart below.
High-resolution chart
The price move in Bitcoin (BTC) from recent highs is backed by increasing volume levels, which supports the notion of further downside. BTC price will likely retest the 20k support level, which marks the 2017 highs. Many altcoins are showcasing similar price patterns as Bitcoin.
High-resolution chart
| US markets close | Gain |
| S&P 500 | -2.01% |
| Nasdaq | -2.07% |
| Dow | +0.59% |
| VIX | +5.16% |
| Protocol (Coin) | Price ($) | Gain (%) |
| 1inch (1INCH) | 0.77 | +10 |
| TitatSwap (TITAN) | 5.05 | +6 |
| Tenset (10SET) | 3.45 | +4.4 |
| Hive (HIVE) | 0.62 | +36 |
| Render (RNDR) | 0.60 | +22 |
| Xido Finance (XIDO) | 8.99 | +10 |
| Bitcoin Fear and Greed Index | 10 Extreme Fear |
| “Crypto” Google Trends 90d | 20 |
| “Bitcoin” Google Trends 90d | 40 |
Newswatch 📰
Ether staking for institutions. Institutional crypto custody firm Anchorage Digital introduces Ether (ETH) staking as a new option for institutions. With the Ethereum “Merge” slated to transpire as early as August, institutions will have a secure avenue to reap ETH yield rewards for helping secure the network. Analysts predict ETH yields to be in the range of 8-12% post-merge, a significant rise from current levels, which could open the door for a flood of institutional interest. In addition, the product could spark the ‘Ethereum as a bond” narrative.
CoinFlex launches a recovery token. Physical futures crypto exchange CoinFLEX is set to launch a Recovery Value USD (rvUSD) token after halting client withdrawals due to outstanding debt from a high-worth individual (Roger Ver). Although the individual claims, he owes nothing to the exchange. The firm plans to issue $47m worth of rvUSD. Some are calling it the “Roger Ver USD.” Coincidence?
News Tidbits:
- Narratives podcast host Vitalik Buterin.
- Harmony hacker ignores bounty offers and begins laundering stolen funds.
At the protocol level ⛓
Final Toncoin (TON) has been mined. The Proof-of-Work (PoW) blockchain, Toncoin, has mined its last TON coin and has transitioned into a Proof-of-Stake (PoS) consensus mechanism. The firm behind the messaging app, Telegram, created the Toncoin blockchain, but it was forced to step away from the project by an SEC lawsuit in 2020.
Protocol level tidbits:
- Terra 2.0 is now live on Wormhole.
- Hardening the Lido DAO voting process with an objection-only period.
- StarkNet Roundup #22.
- Rocket Pool Redstone upgrade.
- Ronin hard-fork complete. Bridge reopened.
NFT & metaverse update 🐵
HTC launches a metaverse compatible mobile phone. The soon-to-release HTC Desire 22 pro will come loaded with HTC’s “Viverse” platform, which allows users to navigate the “Viverse” metaverse, custody crypto, and trade NFTs. It looks like Solana has some competition!
NFT tidbits:
- Introduction to Astaria, NFT lending protocol.
- Catalonia is building its metaverse.
Banter’s take
Crypto winter isn’t all that bad! It is an excellent time for preparing, building, and saving funds for the next major round. Here’s a little inspiration from the CEO of Messari, Ryan Selkis, speaking about Bitcoin.
These analogies always help give some perspective to the larger picture. The market is down, but it will recover in time. In the meantime, it’s best to prepare for the next major cycle. An even bigger one than before.
Thanks for reading!
Gabri
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Disclaimer
Good Morning crypto (issued by Crypto Banter) is a newsletter for entertainment purposes only.
All opinions expressed by the publisher, writers, and chartists should not be construed as financial advice and do not necessarily reflect the views of Crypto Banter. The publisher, writers, and chartists may hold positions in the tokens and assets discussed. Readers are encouraged to do their own research.
