Tokenomics Overview
- 1. “We trust in a Blockchain ecosystem compliant with the financial practices used at Investment Banks, Investment Trusts and Consulting firms.” Tokenomics Research Center
- 2. ICO Bubble ? Vitalik Buterin, September 2017: “We are in an ICO bubble…. a lot of projects will fail and people will lose money”
- 3. State of the Affairs What Initial Coin Offerings Are, and Why VC Firms Care, Harvard Business Review, March 2017: “What traditional investors don’t like about any of this is the regulatory uncertainty; the high valuations and over-capitalization; the lack of control over financials, strategy, and operations; and the lack of business use-cases. And like any industry, the ICO arena has had its fair share of outright scams, pump and dumps, and blatant Ponzi schemes.” • A lot of ICOs are scams • Hard to distinguish scams from serious projects • Investors are not professionals • No Due Diligence
- 4. Tokenomics: a new science is born Monetary Economics A Token is currency into an ecosystem Tokenomics Corporate Finance ICO funding is a fundraising operation by nature Market Finance Tokens are liquids and tradable on exchanges Game Theory Incentives are the core of Token Model Design Token possible features: Medium of exchange (for goods & services) Unit of account (economic metrics inside the Token Ecosystem) Store of value (saving & investment)
- 5. Tokenomics for ICOs • Token Model Design • Valuation • Financial Communication Tokenomics is the bridge between Start-ups and investors on the ICO Market
- 6. Token Model Design Understanding the Business Model & the vision Designing a Token Model enhancing the value creation & the token circulation
- 7. Market Sizing & Token Valuation Each Market is defined by an annual market turnover called Total Addressable Market The Tokenizable TAM is the TAM divided by the velocity, it equals to the amount of Tokens needed to Tokenize the entire Market The Tokenized TAM is the TAM for which Blockchain provide an efficient solution, it must equals the amount of token circulating in this market TAM: $6 Billion Velocity: 2 Disruption Rate 15% Penetration Rate: 25% Inputs
- 8. Case Study: Ether (ETH) Value drivers • ICO Boom created demand for ETH because it was the medium of exchange needed to buy Token • ETH Price increase was led by a bullish ICO Market • ETH Price is very dependent on Ethereum backed ICOs ETH Use case Run Smart Contracts on the Ethereum Blockchain Medium of exchange to buy ERC20 Tokens ERC20 Tokens are issued in an ICO by a start-up in exchange of ETH
- 9. ICO Performance Analysis Data as of Nov 2017
- 10. What do we do at Token Capital Market? ICO Consulting Definition of relevant metrics for each Token Sale Total Addressable Market (TAM) Valuation Estimation of Token TAM Token Issuance Valuation Token Model Design Market Watch & Trend Analysis Daily Coverage of 50+ major Cryptocurrencies Recording & Analysis of 300+ Token Sales
- 11. Token is the new Stock @TheTokenomist @TCMLive