Emerging set of approaches to crypto valuation


Autonomous NEXT has broken down the emerging set of philosophical approaches to crypto valuation which has resulted in various feedback loops.

Our findings show that the lack of concrete definitions behind tokens and coins coupled with the retro-fitting of existing economic frameworks and math from adjacent industries results in finding a commonly used valuation framework close to impossible. The need for a valuation framework is driven by (1) institutional investors used to DCF and comps entering a market that is more appropriate for early stage venture, and (2) the immaturity of decentralized project models, which have no stable equilibrium around long-term instrument pricing and market outcomes. Market manipulation and persistent speculation has skewed activity statistics related to digital assets and hence made real vs. created activity difficult to distinguish. The transition from corporations to networks and from profits to mutualized resources is also a meaningful unknown.