Utility token market cap and equity market cap are not comparable

“selective focus photo of Bitcoin near monitor” by Andre Francois on Unsplash

Token and equity valuations differ significantly in what they represent, and a misunderstanding can result in an investor dramatically overpaying for a token, or an entrepreneur not receiving the fair value of the tokens that they are offering.






MIT Cryptoeconomics Lab

Official Blog of the MIT Cryptoeconomics Lab

Stephanie Hurder, PhD

Written by

Partner, Founding Economist at Prysm Group (prysmgroup.io), blockchain economics and governance advisory services

MIT Cryptoeconomics Lab

Official Blog of the MIT Cryptoeconomics Lab