Token Terminal — Financial Metrics for Crypto
https://www.tokenterminal.xyz/
Token Terminal aims to provide better financial metrics for token investors. These metrics are intended to be comparable to traditional financial metrics, such as Earnings-per-Share and the Price-to-Earnings Ratio. Today, token investors don’t have the necessary tools to evaluate their investments. Moreover, token investors generally don’t understand the mechanisms by which tokens can capture value. Better financial metrics are a step forward in helping investors understand which projects have sensible token models, and how different projects are maturing.
It’s time to correct the narrative that tokens are just speculative assets. The common misconception about tokens is that they are non-productive assets. Today, nearly all mainstream investors consider tokens to be purely speculative, and they are often conflated with being just currencies. The simplest way to understand how tokens can capture value is to compare crypto protocols with traditional companies — both provide services to customers in exchange for fees. Similar to companies, the services produced by crypto protocols generate cash flows to their owners. In a well-designed protocol, tokens give their owners both economic and governance rights, similar to traditional company shares.
The world’s most valuable services will be owned and operated directly on the Internet. The goal of crypto protocols is to produce open, global, and cost-efficient services. They are worldwide marketplaces on the Internet and concentrate the supply and demand for a specific service into a single place. The Internet created a global marketplace for information and crypto does the same for value. Crypto protocols can be programmed to provide any kind of digital service directly to a global audience — from open financial instruments to computing resources. Never before has it been possible to create payment networks or financial markets owned and operated by a global Internet community. The crypto protocols that emerge as winners within their respective vertical will become part of the core infrastructure of the Internet.
If you have any questions, want to contribute data, or have any other feedback, DM via Twitter @tokenterminal or the contact form on tokenterminal.xyz.
Token Terminal provides financial and business metrics on crypto protocols — metrics we’re used to seeing applied to traditional companies, e.g the P/E ratio. Crypto protocols operate like traditional businesses, only they do it directly on the Internet.
