Basic value of cryptographic projects: the key to success
The world of cryptocurrencies has exploded in recent years, and prices have increased within a few minutes and grew rapidly. But below the surface, the value of these assets is more than just their market fluctuations. To succeed in this room, it is important to analyze the basic value of cryptographic projects. In this article, we will examine the concepts and techniques related to the financial health assessment of cryptocurrency projects.
What is the basic value?
The basic assessment refers to the analysis of the company’s financial indicators using traditional indicators, such as revenue increases, profitability, return of capital (REE), shows other main financial indicators. These indicators ensure the shutter of the company’s basic value and help investors assess its long -term potential.
Why analyze the basic value?
Basic evaluation analysis is very important for many reasons:
- Forecasting price fluctuations : Understanding the basics of the project You can determine possible price fluctuations based on market conditions.
- Identification of potential risk and remuneration : Basic analysis helps to assess the risk of investing in a given project and identify opportunities that can lead to a greater return.
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Project comparison : You can compare the basic values of various projects to determine their relative strengths and weaknesses.
Main concepts to understand
It is important to discuss some key concepts before immersion in the basic assessment in the world:
- Increase in revenues : A healthy increased rate of revenues indicates the ability of the project to make a profit.
- Burn Cash : The amount of money that the company uses for activities, marketing and other expenses.
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Display and capital indicator : This indicator compares the total debt of the shareholder’s capital company, indicating the level of financial leverage.
- Delivery of own capital (REE) : The company’s profitability is based on the shareholders’ own capital.
Process of gradual assessment analysis
Take the following steps to analyze the basic value of the cryptographic project:
- Define key performance indicators (KPIs)
: Identify the most critical indicator for assessment, for example, revenue growth, cash and ROE.
- Collect financial data : Summarize the necessary financial data from publicly available sources, including the exchange of cryptocurrencies, portfolio service providers and other relevant messages.
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Calculate KPI : Use historical data to calculate key performance indicators and create basic lines for comparison.
- Rate the project performance : Compare the project performance with the industry average and comparison with similar projects.
- Identify red flags : Look for warning signs that may indicate possible risk or problems with projects such as high debt level or a decrease in revenue growth.
Accidental research: basic assessment of the cryptographic project
Let’s take a closer look at the hypothetical example using the popular binance exchange of cryptocurrencies.
Project report
Binance is a decentralized exchange (DEX) and a cryptocurrency market compiler, which allows users to trade various cryptocurrencies. In recent months, the project has gained popularity thanks to the native BNB Marker, noting a significant price increase.
KPIs Analysis
We will focus on three main indicators to assess the basic value of the project:
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Increase in revenues : Binance recorded 200% a year in recent quarters.
- Cash Burn : The company burned about $ 100 million a month for supporting marketing activities and activities.
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