How do the sharks calculate the valuation of cryptocurrencies?

3 answers

• phoenix2023Jun 09, 2025 · 3 months ago
  Experienced investors, or 'sharks', evaluate the valuation of cryptocurrencies by considering various factors. They analyze the market demand, the project's technology and team, the token's utility, and the competition in the industry. Additionally, they assess the project's roadmap, partnerships, and community engagement. By combining these factors, they form an overall opinion on the potential value of the cryptocurrency.
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• Elton CorrêaApr 11, 2023 · 2 years ago
  When it comes to valuing cryptocurrencies, sharks rely on a mix of fundamental analysis and market sentiment. They examine the project's whitepaper, team credentials, and the problem it aims to solve. They also analyze the tokenomics, including the total supply, distribution, and any lock-up periods. Furthermore, they monitor the trading volume, liquidity, and price trends to gauge market sentiment. It's a combination of these factors that helps sharks calculate the valuation of cryptocurrencies.
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• mohamedJan 19, 2021 · 5 years ago
  Calculating the valuation of cryptocurrencies is a complex task. Experienced investors, like the sharks, take into account multiple factors. They analyze the project's technology, team expertise, and potential use cases. They also consider the market demand, competition, and regulatory environment. Additionally, they assess the token's circulating supply, distribution, and any tokenomics mechanisms in place. By combining these factors, the sharks are able to estimate the value of cryptocurrencies and make informed investment decisions. At BYDFi, we also use similar methods to evaluate the potential of cryptocurrencies.
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