Bottom-fishing guide: the market value/VC cost ratio

Author: Bugsbunny Source: X, @octopusycc

From the perspective of "market value-valuation", how to find tokens that are currently at the VC "cost price"?

Boldly provide you with a reference for bargain hunting that may be unique in the entire Twitter from the perspective of "market value-valuation".

1. The meaning of "market value is 1-2 times the valuation" in the table

• VCs would rather buy directly if they cannot bring more than 2 times the return. BTC (cold knowledge: BTC rebounded by nearly 80% this year).

• When the coin price is at 1-2 times the valuation, the project party is just like buying back the coins in the hands of VC.

• (The biggest selling pressure of altcoins is unlocked coins) At this time, there is nothing to smash, and market makers can inject liquidity at this time.

2. Why not look at the seed round valuation?

• For seed round projects, VCs may only win one out of 50, and they should make money.

• And the seed round valuation and unlocking date are confusing and unpredictable.

3. Why look at Market Cap instead of FDV

• Most blockchain projects find it difficult to continue operating for more than 2 years, while FDV starts at 5 years.

• If calculated by FDV, the meaning of this table will be very poor.

4. How to use this guide?

• Green is the price of the coin with a market value of 1-2 times the valuation;

• Blue is the price of the coin with a valuation of 2-3 times;

• The unfilled color is the price of the coin higher than three times the valuation;

• Red is the price of the coin that falls below the valuation;

In theory, market makers need to maintain their market value in the range of 1-3 times the valuation, because there is no room for further decline (this is not the only indicator to measure, but an indicator that cannot be ignored).

Then the coins that maintain strong coin prices, such as coins with 2 times valuation or above (blue mark or no mark), mean that market makers are of better quality.

5. Some projects do not have valuations, how did they get the valuations?

• Data sources: @CoinMarketCap@RootDataLabs, token unlocks, thanks to these three service providers for their data support.

• Some projects do not have PR valuations, so we can only boldly try to do valuations, please be gentle.

6. Note:

It is necessary to pay extra attention to the yellow-marked part, which is the currency to be unlocked in May and June, which will bring additional selling pressure to the market.