In our previous conversation, I had been told;
“Use the VC method. Account for the high risk and potentially high rewards associated with early-stage investments.”
I’ve simply been asking you to show how the evaluation was achieved, using ANY method.
I’d agree those are substantial achievements in both volume, and TVL for our chain, and are the start of metrics needed for an accurate valuation. I’d also agree that you’ve outlined a comprehensive, and ambitious plan. While these are the foundations for a good evaluation, the extrapolation upon the current value, reflects something inaccurate in the shortterm, in my opinion, to investors (growth, population, volume).
Obviously the two are incomparable as one is one it’s earliest growth stages, while the other is an established DEX, but if we just look at the numbers and stick to your volume evaluation theory ,
Uniswap currently holds a bit over 1% of ETH’s M Cap, as the largest DEX. Uniswap seen 600m Volume within the last 24hrs, and has a M cap of 3B, which is just 5x.
Sonic has seen 4.5k Volume within the last 24hrs, and has a proclaimed M cap of 15M, which is 3333x.
You’re trying to put Sonic in the exact same position, % wise, as a startup.
I don’t think your valuation is crazily inaccurate, as it is a startup, and it does have to be priced according to future potential (to a point), as you need funding to build and grow. However it also has to be priced realistically in accordance to its current performance.
Which is why I’m just asking you to show your work as to how this valuation was achieved, rather than just saying “I used the VC method and imagined the numbers”
I congratulate the team on making the switch from WICP to ICP, that is a great implementation to remove friction from new traders. With that being said your first hint of acquisition was on February 9th (sonic v2 tweet). It is now May 4th. I don’t think it’s exactly fair to call that a condensed timeframe, as Psychadelic built Sonic within that same timeframe to begin with (announced 11/2021, released 01/2022). Within 4 months, I don’t really consider “adopting industry standards” and “open-sourcing the platform” count as substantial updates in comparison to what your roadmap outlines.
Just trying to ask questions & understand how this is going to be profitable for me as an investor.