My translation: This is token with a market cap of currently nearly 6 billion USD, and the developers are holding 98%.
All big purchases in the future will be done from the developers directly thus will not hit the market and influence the market price positively.
All big purchases in the future will be done from the developers directly thus will not hit the market and influence the market price positively.
I disagree Token valuation CANNOT be compared to traditional asset valuation. For instance, Apple can always issue new shares, thus they effectively have an UNLIMITED potential market capitalization. Veritaseum has clearly and upfront told us that there will ever exist 100 Million tokens.
Secondly, the token distribution is instantly transparent on the Blockchain, unlike a stock where Apple can issue shares or warrants / options and it may not be apparent to the market that there are new shares going to hit the market. So if a company like Apple can issue new shares, their market capitalization is theoretically UNLIMITED.
Thirdly, Reggie was clear that this token is for purchasing services. Large blocks will be sold from the reserve to high net worth entities. It is understood from the presentation that Reggie and team are working to build a platform where spending those tokens is useful and needed. That will create a demand and drive long term price growth of the token.
It may be fun to think that market cap of a token is total tokens times the spot price. This is inaccurate as it is not possible to liquidate a large position without materially affecting the market, so the spot price is movable. I'm here for serious valuation and the long term.
I consider that the total float of shares issued for converting to veritaseum services is the true representation of the value of this token. Reserve is NOT a factor until they are transfered on the blockchain and that this is fully transparent for all to see. Since this would most likely be something that would be announced on the website as news, I believe that it will add to the importance and necessity of holding these tokens, and using them personally as well.
If someone bought 1 million from the reserve, that would be public, liquidating those would consume all the buy orders in the narrow band of accepted price, and rapidly move the price down. It wouldn't really make sense at this valuation level to do that. So we remain with why someone would buy VERI, and I assert that this is for the value they represent in trading them for services.
We already know the valuation model for GNO tokens based on Reggie's work. This demonstrates perfectly that cogent analysis is needed and there is a huge opportunity to move in these new platforms to collect value. That is what you are buying with your token, and that is what it represents.
I foresee a ICO Token shakeup in the next 12 months. It's going to move from the wild wild west, to a much more deliberate and fundamentals based process. Reggie and Veritaseum are perfectly situated to provide the expertise to participate in this movement!
