Value Investing in Crypto
Tezos, through its foundation, on July 31 2019 had an aggregate value of $652,224,830 USD consisting of 61% Bitcoin, 15% Fixed income assets, 15% Tezos Coin (XTZ), 6% Fiat currency, and 3% other Digital assets.
The Tezos foundation is committed to the improvement the infrastructure of Tezos through the grants, funded entities, and community collaboration. Quote from Tezos Foundation " We believe the Foundation’s role is to deploy resources to premier entities and initiatives that will help ensure the long-term success of Tezos. As such, the Tezos Foundation is a proactive grantmaker. " Since Jul 2018 to the time of the annual report, the foundation has awarded over $37 million in grants. This is all done to expand the development and hopefully fuel the fire to wide adoption.
1) Brings a lot of potential utility through its block-chain. This can come in the form of Decentralized Applications, Decentralized Finance, anything that would require the use of smart-contracts.
2) Brings a unique aspect to its block-chain through governance that allows the protocol to be amended. This is a huge advantage and allows the chain to evolve with changes that are needed.
3) Through its governance, it keeps the whole community intact. Compared to Bitcoin and Bitcoin Cash, which the community was split due to developer disagreements. This makes each community weaker and altogether less innovative.
So, how does this relate to value investing? The current market cap of Tezos (XTZ) is Appx. $1.1 Billion:
4) Has substantial intrinsic value through the foundation. Given the Above Figures:
Bitcoin was 61% of value. This results in about $397,857,146 @ a price of $9589 resulting in about 41,491 coins. Today Bitcoin was trading at $9258. That would still maintain a value of $384,123,627 if no Bitcoin was used.
However, the biggest figure is the 15% Tezos which at the time was only $1.01 per coin with an amount of 96,865,073 coins. Today, Jan 29 2020, they are trading @ over $1.50. This would bring the total amount to $145,297,609. Not to mention that through XTZ Proof of Stake, there is an approximate 6% return on coins, yes coins. Bringing the total to $149,801,835.
Adding these two values we get a total of Appx. $534 Million. or almost half of the market cap of Tezos currently. Adding back in the other 24% in fixed assets, fiat, and other digital assets, we are considerable close to intrinsic par value of the XTZ coin.
This is quite a rarity in the Block-chain environment. At their current rate, it seems that Tezos is well suited to sustain well into the future. The way the foundation is set up, investing in this is more like investing in a technology company, rather than just another digital asset.
For reference, here is the last biannual foundation report. https://tezos.foundation/news/tezos-foundation-releases-first-biannual-report Here is a link to their website. https://tezos.com/