jihad ↑
@jihad
There are countless tokens that are undervalued relative to their revenue/profit. Most of the market just doesn't know enough about them, so even if they're "undervalued," there's no indication that new money will catch up to the same thesis. This is significantly less true for stocks of public companies. Why?
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naaate
@naaate
Yes, what others said, but also related to trust in the legal system. It’s why companies in countries with less trusted legal systems also tend to be “undervalued.” You trust that the legal system enforces your rights as an owner. If the company is sold, you get a piece. Shareholder votes will actually matter. Fraud/corruption is more likely to get found out. So it is not always truly undervalued. It may just be valued according to your chances of a return relative to risk.
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six
@six
I think it’s because the revenue doesn’t actively accrue to token value If there were rev share or buybacks or something they’d get valued closer to traditional companies
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↑Dom
@onchaindom.eth
I mean I think most IPO companies are like 10 years in. For “utility” tokens ppl are launching them before they’ve even released an MVP.
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Tayyab - d/acc
@tayyab
Over the long run this turns out to be true. Retrospectively, nvidia was massively underpriced for a long time.
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Catch0x22 (2025 variant)
@catch0x22.eth
because you're comparing gamblers that are fooled by the efficacy of web3 vs. accredited investors that are paid to make money
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Garrett
@garrett
I'd guess that future cash flows are harder to predict. Onchain markets are still very nascent.
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