What I think Crypto Projects Can Learn From TradFi
We're preparing, not shillin' and chillin'
I'm tired of seeing listed projects attempt to pump their tokens or hold their prices through staking. So my hedge funds background brought me back to the fundamentals of TradFi stock analysis.
"There's gotta be a better way" - Mr Wonderful
Here's what I found from Zacks.com
Technical Analysis
P/E Ratio
Earnings Per Share
PEG Ratio
Book Value
Return on Equity
Analyst Recommendations
I think that most projects are run by good builders and operators. But many are lost after their TGE.
Because most project teams just copy their predecessors:
TGE
Introducing staking
Pray that token doesn't tank
Core team cashes out via OTC
Summarising the 7 ways in my first post above, I think listed projects have to be hyper-focused on 2 things after TGE:
Earnings
Book Value
Without either of these figures, there is no fundamental reason why a token should be priced at $X.
There is more liquidity coming into the crypto space, and most of it is coming from TradFi.
If projects want to attract this liquidity, they have to focus on how TradeFi traders/investors analyse their positions.
They do not understand #LFG or #WAGMI.
Only P/E and BV.
Imagine if a project's Earnings and/or Book Value (both is best) is clearly defined... Teams no longer have to:
Manage shit-posts in TG groups (read: wen moon ser?)
Worry about price & liquidity
Do 100 different things to make it look like there is progress
Taking away the bad stress, let's the team focus on more positive objectives:
Building and shipping products
Striking more meaningful partnerships
Growing and nurturing employees
Improve revenue numbers
Make longer-term investment decisions
Staking seems to be the EOL for most listed projects. But that shouldn't be the main driver for token prices. Certainly not @SaladVentures (when we list).
“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” ― Benjamin Graham
I have taken a contrarian view from the start of Salad when I see something that could be done better.
And in preparation for our TGE, we are determined to be value-driven to give the ultimate upside (sustainably) to our token holders.