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Opinion: Fully Diluted Valuation Is Not a Useful Metric In Crypto

For the most part, FDV (Fully Diluted Valuation) can be largely ignored as an important metric for evaluating the price growth potential of a crypto asset.

I recently invested in a AAA blockchain video game project from Australia called Illuvium (https://illuvium.io/), which is creating a Pokemon-like battle and collection mechanic but entirely around NFTs. During the initial token launch, however, I had a conversation with someone who couldn't get over the fact that the Fully Diluted Valuation metric was ~$715M despite that the market cap based on circulation is only ~$42M (https://www.coingecko.com/en/coins/illuvium).

For an unlaunched game that has a lot of promise with multi-billion dollar potential, $30-40M seems like a reasonable valuation to me. $715M obviously, seems like the upside to buying in now is limited, and worse, if the game doesn't do as well as the makers hope, it may never live up to that lofty 3/4 billion dollar valuation.

However, this FDV evaluation completely misunderstands the tokenomics of the project itself and would only be relevant if your plan was to buy ILV, place it in your wallet and never touch it for more than four years. Why is this?

The game itself has built a DAO model similar to Synthetix (the founders are brothers of the founder of Synthetix). ILV will be launching several mechanics to incentivize long-term staking, DAO participation, and liquidity provision on decentralized exchanges, as well as onboarding new gamers into the ecosystem to drive value to the platform itself. So your ILV position... (More)

Investing in crypto / blockchain / defi funds

Over last couple of years my crypto exposure has evolved from 100% btc, into adding a percentage of ETH, and then adding some limited exposure to some of the leading Altcoins. I am now looking to further diversify my exposure into the broader crypto / blockchain / defi space (in addition to the core holdings in btc and ETH). My concern is how to identify good tokens / projects / platforms, given how many there are and how quickly the space is developing (especially given the limited time and knowledge I have!). I am therefore considering investing in one or more of the Pantera funds - Early Stage Token and/or Liquid Token funds.

Would be very interested in any views and experience of the community as to whether there are other funds which I should also consider, or indeed whether there are other better methods to gain a more diversified exposure to the broader crypto/blockchain/defi space. Lastly, any experience people have had with Pantera (good and bad) would also be of interest.

Thanks in advance!

Episode #21 Bitcoin and Ethereum Elliott Wave analysis ! 04/17/21

We're losing some momentum to the upside but the uptrend continues in cryptoland. 

https://youtu.be/Mh7kBZS0ICk

HIDDEN GEMS IN CRYPTO BY IVAN ON TECH #35

Check this new report on Defi Coins is really good and very well made my Ivan Academy which I recommend for sure