The Cryptocurrency Disparity Ratio
In conjunction with our friends at CoinMarketCap
, each week we’ll be producing the Crypto Disparity Ratio.
The Crypto Disparity Ratio recognizes the distinction between fundamental health (FCAS rating) and current market capitalization. A score above 1 reflects an undervalued asset, and a score below 1 indicates an overvalued asset.
June 6, 2019: Top Five CDR Undervalued Cryptoassets:
June 6, 2019: Top Five CDR Overvalued Cryptoassets:
To identify those assets that are most under- and overvalued according to FCAS ratings, current market cap is converted into a standardized percentile, so that it can be directly compared on a 1,000-point scale.
The ratio of [Current FCAS] to [Current Standardized Market Cap] provides a relative over/under score:
- A value over 1 indicates an undervalued asset (that is the FCAS is higher than the market cap would indicate) and;
- A value under 1 indicates an overvalued asset (one whose FCAS is lower than we might expect).
Disclaimer. Do your own research, be a wise, thoughtful, considerate, mature and generally level-headed investor. Meaning: the information contained herein is not intended to be a source of advice or credit analysis and does not constitute investment advice.
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