Based on my calculations, the net present value per $veAERO token should be around $3.00. This indicates that there is currently a price difference of approximately 150% that could be unlocked in the future.

The large difference in price illustrates that the amplitude of Mr. Market’s moods is particularly extreme in crypto. For the long-term investor who is not bothered by daily and sometimes significant price swings, substantial outperformance could be achieved if the discount between the current trading price and the net present value is large enough.

Of course, this is based on the hypothesis that, over the long run, the net present value and the actual trading price will converge toward some form of parity.

If you found this analysis helpful and want to stay ahead with more insights on valuations, market trends, investment strategies and politics please consider subscribing to my newsletter.

Based on my calculations, the net present value per $veAERO token should be around $3.00. This indicates that there is currently a price difference of approximately 150% that could be unlocked in the future.

The large difference in price illustrates that the amplitude of Mr. Market’s moods is particularly extreme in crypto. For the long-term investor who is not bothered by daily and sometimes significant price swings, substantial outperformance could be achieved if the discount between the current trading price and the net present value is large enough.

Of course, this is based on the hypothesis that, over the long run, the net present value and the actual trading price will converge toward some form of parity.

If you found this analysis helpful and want to stay ahead with more insights on valuations, market trends, investment strategies and politics please consider subscribing to my newsletter. 

https://open.substack.com/pub/5forsunday/p/do-cryptocurrencies-have-any-intrinsic?r=3jn2by&utm_medium=ios