How do you value cryptocurrency?

Aenigma Capital
2 min readMay 5, 2018

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This past Wednesday, Ænigma Capital unveiled a one-page teaser of its upcoming publication, Cryptoeconomic Fundamental Valuation Approaches, during the MEDICI Conference at the Waldorf Astoria Beverly Hills.

Described as a “meeting of digital currency institutional investors,” the conference brought together traditional and crypto heavy hitters including top investment funds, financial institutions, and thought leaders. The panels of the day emphasized new wrinkles in crypto fund investment and government regulation, capped off by a presentation and Q&A session with Securities and Exchange Commissioner Hester M. Peirce.

Ænigma was represented by Managing Director Juan Bruce and Partner David Grider. Founder of First Cut VC, Bruce began working with startups in the ’90s at Stanford and continued at BMW’s Technology Office Silicon Valley and the renowned design firms IDEO and Continuum. He was joined by Grider, a valuation and token economics expert who authors much of Ænigma’s valuation research and thought leadership.

Cryptoeconomic Fundamental Valuation Approaches is a continuation of our 2017 valuation study Leveraging the Cryptoeconomic Machine. In this newest report, we describe the fundamental valuation approach that guides our investment philosophy, including the three primary components of network value (network usage utility, discounted future cash flows, and store of value) and their key drivers from a macro cryptoeconomic perspective.

The full thesis is slated to be released later this year.

Ænigma Capital is a crypto hedge fund that combines venture capital-style investment in early-stage projects (pre-ICO) with analytical investment in publicly traded tokens. Ænigma began as a private fund for the founders of a crypto and ICO advisory group and their Stanford alumni friends. We utilize a blend of venture, technical, crypto, and public markets experience to address the unique nature of the crypto market.

Visit us at https://aenigma.capital.

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