$94,000 — Genesis Vision Token (GVT)
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You’ve heard it, I’ve heard it, we’ve all heard it. This meme has been everywhere.
“Ninety Four Thousand Dollars”
Whether it is on Reddit or the Genesis Vision Telegram, you’ve probably seen “$94K!” as a cheeky response to frequently discussed price predictions.
But is it really possible?
How can a single Genesis Vision Token be worth such an astronomical figure???
Follow me down the rabbit hole, and I will show you…
The video above actually does a very good job explaining the basics of calculating the minimum value of a stock. Once you calculate the PRICE MINIMUM a stock is worth, you can then look at the current market price and determine if it is overvalued or undervalued. From there you can make investment decisions based on calculated disciplined thought instead of speculation or FOMO.
As described in the video, Danny focuses on figuring out how much the assets are worth for “New England Wire and Cable Co”.
He focuses on things such as: Equipment, Land, and Cash. These are things that are quite easy to value, and to be conservative he decreases the estimated value by 20% just to make sure he does not over value the company.
1. Assets
For GVT, the primary asset we will focus on is “Assets Under Management” This is how much money investors have put into the GV platform to invest.
The PRICE MINIMUM for GVT can not be lower than the assets under management in the Platform divided by the number of Tokens outstanding
^READ THIS 3 TIMES^
(source “The net asset value per share (NAV) is the value of the fund per share and is equal to AUM divided by the number of shares.” — Columbia Business School https://www0.gsb.columbia.edu/mygsb/faculty/research/pubfiles/3948/Hedge%20Fund%20Leverage.pdf (bottom of page 3.)
Lets now demonstrate the PRICE MINIMUM concept on GVT
According to the white paper:
“Considering our more than 400 contacts with brokerages among our partners and advisers, we expect at least 100 brokerages to join our distributed system within 2 years.”
Here is what we can extrapolate:
100 brokerages to join within the next 2 years
Each broker on average has 226 clients (See the Forbes article)
Each client’s average account size is $78,469
To calculate assets under management (AUM)
(100 Brokerages) x (226 Clients) x ($78,469 Avg Acct Size)
= $ 1,773,399,400 Assets Under Management (AUM)
$1.77B/4.4M Tokens= ~$400 per Token
Is $1.77B Assets Under Management (AUM) in 2 years realistic for GVT???
Yes, also per the white paper the current addressable market is $70 Trillion in 2015 and projected to be $100 Trillion by the year 2020
If GVT achieves $1.77B (AUM), Genesis Vision platform would only achieve market penetration of 0.00177% out of the $100 Trillion addressable market in 2020. Plenty more runway is available for Genesis Vision to take off.
2. Asset Growth
We now know that assets under management(AUM) divided by tokens provides us a PRICE MINIMUM valuation for GVT. The beauty of GVT, is that it is an investment platform, and if it operates as intended, the size of AUM will grow in accordance to the returns investment managers are able to generate.
In the trading tournament we saw some really crazy returns. In the video, Danny chopped off some of the estimated value of assets just to be safe, so that he never over values the assets in his valuation. In the crypto game it is better to be safe than sorry, so I will follow the same conservative approach.
As you can see from the final tournament results, all of the top 5 traders generated returns of over 400% in just over a week. The 50th place generated 12% profit in just over a week.
Lets assume a growth rate of 11.06% per week is sustainable in the future, a VERY conservative growth rate considering that Genesis Vision will allow investments in the CRYPTO markets.
Assets Under Management can increase in two ways:
- Assets Under Manage experience positive investment returns
- New investors join the Genesis Vision platform bring in new $$$ into the system
(Keep in mind this 11.06% weekly growth rate is the grow of the size of AUM, this can increase from more investors and brokers joining the platform OR investment profits of the current assets under management)
1.77B grown at a rate of 11.06% for 52 weeks (1 year)(with a supply of 4.4 million tokens)
= PRICE MINIMUM of $94k.
Recap:
$1.77B Assets Under Management is expected by 2020, per the White Paper
11.06% weekly returns is not unrealistic given trading competition results
$1.77B grown at 11.06% for a year is $414.77B
4.4 Million tokens exist, and no more tokens can be created
The PRICE MINIMUM for GVT can not be lower than the assets under management in the Platform divided by the number of Tokens outstanding
^READ THIS 3 MORE TIMES^
Under these conditions, a conservative PRICE MINIMUM would be $94,000 per GVT by 2021
Thank you for reading!
I work really hard to put these articles together for you guys. I do it because I love this project, and truly believe in it. If you enjoyed this article, or any of my past articles, a donation would be highly appreciated!
ETH, GVT, and other ERC20 Tokens: 0xFb0e76064a531030A933d1369fdB8809b949CD3B
BTC: 3Lie7Yq23SPtB4ngXp3cXCyCxjZQEnP2eG
