💥Streamlined Price Projection Methodology
This unified methodology leverages the Quantity Theory of Money, represented by the Equation of Exchange (M x V = P x T), to derive $RBLS’ intrinsic value based on token supply (M), velocity (V), average token price (P), and number of transactions (T). This core economic principle underpins speculative and intrinsic projections, serving as a foundational model for valuing $RBLS.
Key Considerations
Token Supply Dynamics: Fixed supply mechanisms like Rebels Revolts, with pre-minted tokens, contribute to value appreciation over time by controlling inflation.
Utility and Demand: Integrating $RBLS as a membership token and payment method significantly enhances intrinsic value and demand within the ecosystem.
Strategic token supply management and maximizing utility are vital to optimizing $RBLS' intrinsic value. Next, token circulation and controlled supply dynamics are explored.
The chart shows token price projections based on factors like velocity, trading multiples, and supply, highlighting the importance of careful analysis for accurate predictions and investment returns.
Assumptions:
Usage Data
Value
Membership Tokens
50%
Lost tokens/year
0.50%
HODL tokens
10%
Means of Payment
10%
Table#1
Data
Value
Token Velocity
2.8
Trading Multiple
10
Table#2
The table below illustrates the fair-trading price for all sales stages using the above figures. Please remember that it is not uncommon for projects to trade 100x trading multiples.
Token Fair Price Projections
Chart A illustrates fair price projections for the $RBLS token based on the Equation of Exchange and Quantity Theory of Money.
Token Trading Price Projection
Chart B illustrates fair price projections for the $RBLS token based on the Equation of Exchange and Quantity Theory of Money.
Based on the Chart A figures above, two important observations can be made:
The fair price of the $RBLS token is lower in the initial two years than the token sale price
As a participant, why would anyone purchase the token during the sale if the price dropped in the initial years?
The first thing to understand is the difference between the fair price and the trading price of tokens:
Fair Price vs. Trading Price
Fair Price: The fair price of a token is its intrinsic value, calculated based on factors like utility, tokenomics, supply and demand dynamics, and economic models like the Quantity Theory of Money, representing what a rational buyer would pay for the token.
Trading Price: The trading price of a token on cryptocurrency exchanges is the actual market price, which can differ significantly from the fair price due to factors like speculation, market sentiment, perceived utility, and investor behavior.
Given the provided figures for the Token Fair Price [Chart A] and Token Trading Price [Chart B] in US dollars, Why consider purchasing during the token sale if the fair price experiences an initial drop? Analyzing this scenario is crucial for potential buyers.
Initially, the Token Fair Price is set at an average of $0.03216, but during the sale, the Token Trading Price rises to an average of $0.04361. While the Fair Price initially drops to $0.01454, the Trading Price is notably higher at $0.10579, indicating potential for immediate gains. As the project progresses, the Fair Price steadily increases, reaching $1.146, while the Trading Price peaks at $11.46447. This data emphasizes that purchasing during the token sale, even if the Fair Price is initially lower, can prove advantageous due to the potential for significant appreciation in Trading Price over time. Thus, Investors can benefit from this early acquisition, resulting in substantial profits.
Token Use and Controlled Supply
Integrating $RBLS as both a membership token granting access rights and a functional means of payment while maintaining controlled supply significantly enhances its intrinsic value within the ecosystem:
Functional Payment Use and Membership Access: Expanding $RBLS' utility as a payment method and membership token enhances its practical value and promotes adoption within the ecosystem.
Controlled Supply with Utility and Membership Benefits: $RBLS, used for payment without burning, serves as membership tokens, enabling controlled supply management, preserving scarcity, and stimulating adoption through its utility and membership benefits.
Last updated