2/ “The strangest market." That’s how @teempai described the scenario in which seed companies are raising at $200m valuations – without the quick exit opportunity formerly available in ICOs – in this phenomenal thread: https://t.co/mKI8WghQVq
— Nathaniel Whittemore (@nlw) June 21, 2018
4/ Even more extraordinary was @wheatpond sharing that his firm – China’s largest blockchain-focused fund – is increasingly passing on pre-sales & early rounds due to valuation concerns. The sentiment was echoed by other investors like @spencernoon https://t.co/3RnOC3IazO
— Nathaniel Whittemore (@nlw) June 21, 2018
6/ Ever the elder statesmen, @fredwilson wrote a post called “The Valuation Obsession” – flagging as part of the problem some CEO's belief that higher valuations make it easier to recruit top talent (even though upside is higher when valuation is lower) https://t.co/G8wGfBE68m
— Nathaniel Whittemore (@nlw) June 21, 2018
8/ Given the concern of investors, why are valuations so high? Part of it is that in the era of ICOs, those who put money in on a discount could almost immediately sell their holdings to post-ICO investors. There is much to say about that – in fact deserving of another thread.
— Nathaniel Whittemore (@nlw) June 21, 2018
10/ Given that, if there has ever been a time to spend some community energy exploring valuation models, this is a good one. To that end, a good starting place comes from @AshleyLannquist who wrote this comprehensive overview of valuation frameworks: https://t.co/k1P4IiEqPx
— Nathaniel Whittemore (@nlw) June 21, 2018
12/ @Travis_Kling who recently jumped from the hedge fund world into crypto with @Ikigai_fund has done exhausted research on valuation models recently shared some of those learnings in a conversation with @Obstropolos and @crypto_bobby https://t.co/3AmkwkXklB
— Nathaniel Whittemore (@nlw) June 21, 2018
13/ Thanks to thinkers like @kylesamani & @jlppfeffer, meanwhile, utility token projects now have to answer “the velocity problem":
The Blockchain Token Velocity Problem https://t.co/TH7SKGOpv5
Doubts about the Long-Term Viability of Utility Cryptoassets https://t.co/g1UuXlVbgf
— Nathaniel Whittemore (@nlw) June 21, 2018
15/ The point is that while there aren’t yet clear valuation standards, there is a ton of thinking out there. The more investors share their insights with one another, the faster we’ll get to a more nuanced understanding that will help projects and investors alike.
— Nathaniel Whittemore (@nlw) June 21, 2018
17/ What important work on valuations does this list miss? Please share here so we can continue to build this as a resource for investors, project leaders and the crypto community at large.
— Nathaniel Whittemore (@nlw) June 21, 2018
18/ This thread today by @robustus is another great addition to the conversation on the psychic value of holding an asset. This is a whole different dimension to the argument that needs to be studied. https://t.co/00FDGNQ6TD
— Nathaniel Whittemore (@nlw) June 21, 2018
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