A math formula from the 90s can help investors make smart bets on the exploding ICO market

Posted On: Feb 16, 2018   |   Posted By: Business Insider

A math formula from the 90s can help investors make smart bets on the exploding ICO market

The initial coin offering market is off to a red-hot start in 2018, according to new data from Autonomous NEXT.
RBC analyst Mitch Steves outlines a way to value the network of ICOs in a note to clients.
Bitcoin may be down nearly 50% from its all-time high set in December, but the market for initial coin offerings is still humming along.
ICOs allow companies to raise funds by issuing their own token. They've allowed companies spanning industries from gaming to finance to raise millions of dollars in a matter of seconds.
Still, compared to more established markets pin-pointing good investment decisions in the ICO space isn't as clear cut, according to RBC analyst Mitch Steves.
"In the stock market, we value companies based on a wide variety of metrics that range from sales valuations, book valuations, earnings valuations and cash flow valuations," he said.
None of these things exist for crypto.
In a note to clients, Steves notes that investors could use so-called Metcalfe's Law to value the network of...

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