Too Long; Didn't Read
Over the past few months, the professional discussion has developed on which frameworks, heuristics, and metrics can be reasonably applied to value crypto assets. The token velocity thesis has attracted much attention. Other frequently mentioned models include the network value-to-transaction ratio, number of daily active addresses, store of value concept, and market cap divided by daily transactions. Despite the variety, no method is as clear as the good old discounted cash flow. Fair values we can calculate for most crypto assets are somewhat questionable, although noteworthy. The “normal” NPV approach doesn’t work for the majority of token models; utility tokens and native currencies do not generate cash flows.