RERUN: How to Figure Out Whether a Crypto Token Is Worth Its Trading Price - Ep. 756
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Hey, everyone. This year for the holidays, we're airing a rerun of one of our most popular episodes this year, a conversation between Ari Paul of Block Tower Capital and Jose Macedo of Delphi Digital about how to value coins, the difference between circulating supply versus fully diluted value, and the impact of token unlocks on price. When I checked my Cato Yap score, it said that the week of my highest rank was the week that this episode aired. If you know of any newbies to crypto, and let's face it, this bull market has brought in a lot right now, this would be a good show to share with the
In the modern airdrop meta, it's just like civil farmers and, like, hyper sophisticated people who are we're looking to to just civil farm and then dump your token. Right? And it it's just a silly way to to distribute your token. Like, it's it's what we have because the SCC it's funny. Like, everything the SCC did made it worse for retail. Like, made made everything worse for for for retail. You know? Like, airdrops isn't like moving everyone to this airdrop meta as an example. Right? I mean, I I'm not I don't need to harp on that. I think everyone knows knows that. And
wait. But just to make clear, so does that mean that you think ICOs were a better mechanism?
Definitely. Yeah. I think I think that was definitely a better mechanism because, I mean, it was, like, it wasn't better for us as venture investors, but I think it's better for the industry as a whole because, you know, it's very easy to look at the data and you see that the upside in these projects once the SEC came in and banned ICOs just moved private. Like, you have the same level of upside and the new ones is the or or similar and the new ones the old ones, but the the upside was all captured by venture investors rather than the public. Hi,
everyone. Welcome to Unchained, your no hype resource for all things crypto. I'm your host, Laura Shin, author of The Cryptopians. I started covering crypto 9 years ago and as a senior editor at Forbes, was the 1st major media purr to cover cryptocurrency currency full time. This is the July 2, 2024 episode of Unchained. Polkadot is the original and leading layer 0 blockchain with over 2,000 plus developers, and the Polkadot 2.0 upgrade will be a massive accelerator for the ecosystem, making it faster, more secure, and adaptable. Perfect for GameFi and DeFi to build, grow, and scale. Join the
very much. So
there have been a ton of token unlocks that have been hitting the market, and there's more to come. For instance, in July, we're gonna see over about $750,000,000 worth of tokens for 40 different projects that will be unlocked. And meanwhile, there's a lot of people sounding the alarm about how there's not quite enough demand for these tokens, not by a long shot. Jose, we you were actually the inspiration for this podcast as you've been writing multiple tweet threads about this issue. There's also been just a lot of commentary on Twitter around a lot of related issues. But why don't you descri
Yeah. For sure. So I first talked about this and thanks very much for having me, by the way. Big fan of the big fan of the pod. So I first spoke about this, a few months ago, because in a bull market people tend to discard fundamentals and the sort of FDV as a meme and bullish unlocks thing, which are kind of both offshoots of the same thing, come back. And obviously, like, fully diluted valuation, for those who don't know, that's like the total number of tokens times the price of the token. And then the market cap is just the circulating tokens times the the p
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