0xResearch Live From DAS: Building Empirical Valuation Frameworks For Digital Assets | Jon & Matthew
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Mar 25, 2025 Guests Jon Charbonneau, co-founder of DBA and a crypto venture expert, and Matthew Sigel, the crypto research head at VanEck, delve into the complexities of valuing digital assets. They discuss whether traditional finance metrics apply to crypto and how market sentiment influences pricing. The conversation also highlights the importance of tokenomics, with a focus on inflation and staking's impact on valuations. Additionally, they explore the challenges of high premiums and the effectiveness of technical analysis in the volatile crypto market.
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Crypto Valuation Challenges
- Bitcoin has historically been viewed as a commodity or money.
- Thousands of other tokens trade with different tokenomic models, which may or may not accrue cash flows.
Traditional Valuation in Crypto
- Traditional valuation methods, like DCF, are difficult to apply to crypto due to its volatile, early-stage nature.
- However, understanding potential cash flow generation is crucial for assessing potential returns.
Flows Over Fundamentals
- Token prices are primarily driven by market flows (90%) rather than fundamentals (10%).
- This can be seen in discrepancies between market cap and economic activity, like with XRP and Ethereum.