Bankless SoTN #6 - EXPONENTIAL, Special Guest: LUCAS CAMPBELL (DEFI TOKENS, ETH PUMPING GOOD, TOKENS VS ETH)
Jul 22, 2020
Lucas Campbell, a Bankless Analyst known for his expertise in DeFi token economics, joins the discussion. He shares insights on the growth potential of DeFi tokens like LINK and Aave, comparing them to established cryptocurrencies. The conversation highlights the importance of price-to-earnings ratios for token valuation and the ongoing evolution of the DeFi landscape. They also explore the unique rebasing mechanism of Ampleforth and its implications for supply dynamics. Ultimately, they contemplate the balance between token valuation and real-world utility in the decentralized finance ecosystem.
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Crypto Capital Assets
- Crypto capital assets, unlike other cryptocurrencies, have tangible value flowing through them.
- This allows for traditional valuation methods like P/E ratios and DCF models.
DeFi for Traditional Investors
- Traditional investors, used to valuing stocks with cash flow models, can now apply similar methods to DeFi tokens.
- This bridges the gap between traditional finance and the crypto world.
DeFi Token Performance Q2 2020
- DeFi token performance in Q2 2020 was explosive, with some tokens growing over 500%.
- Despite decreased earnings due to MakerDAO's zero stability fee, the sector diversified.