Well marketcap is also going to include the revenues, earnings.. accounts future projections and earnings. There is alot that goes into that.

So if you look at social media platforms like facebook.. how is it's value analyzed? Well the value is analyzed from the number of accounts. So facebook projects the value of each account around $400. if you got active people using that platform. The issue is most crypto projects have very little users to reach value that big.

So its not so much a big deal that the owner buys the tokens. The owners or ceo's buying the tokens are a good thing. The problem is are they buying it at prices far outside its value. Are they pumping it up then selling at a premium beyond it's value? Well it's possible all depends.

For example let's say a project backs up their tokens against gold. Well you got a few issues. Let's say a million bucks worth of gold is in the project. Doesn't really matter why its there. It's still in the project. Now unfortunately in crypto how would you audit it? lol.. So that's an issue. So even using that as a means to substantiate the value is weak. Now if you got real estate, invoices etc., wrapped in a smart contract thats another thing. If you've found a way to be able to audit that and so on and so forth. So its very complicated but there is absolutely nothing wrong with owners or ceo's buying tokens etc., unless they just are trying to do a pump and dump.

In lasse seeing that it's a cloned product. To me it just fits more into redundancy.. As to say i can clone facebook or twitter but its still not going to have the network or brand effect. The other thing i feel is a false assumption is that the technology makes the product valuable.

I don't agree with that because again if thats the case i can clone facebook and say well i got technology worth almost a trillion bucks. Just doesn't work that way. You need network effect. Now the real question is who will achieve network effect?

Well thus far tribes don't have much users. We keep referencing the only 2 that actually do. They are rather small still but leo and proof of brain. I think leo still makes the most sense because you're going to have knowledgable investors in leo. I think proof of brain may eventually go the direction of most other tribes. So how do you value these type interfaces.

Well seeing that in something like crypto first of all we don't know who all these people are. .Like the top 20 biggest stakeholders could be the same guy. That's been proven to be true. With no regulation can we really say these are unique people. Also the economy is so small and poor that one big whale can still control entire tribes and networks and whereas with regulation they'd be under certain security laws here we really don't know what's what.

So what i tend to do is look at projects that first i believe they have a real product that is not a tech clone. A real product that has a significant chance of real growth. I know i can find value in growth. The problem in social media if you look back again on an example like facebook almost worth a trillion dollars. No matter what you say about facebook you can't discount the tremendous amount of value.

Well facebook has so much value because it's based on freemium services. What does that mean? Well it means like free internet. .or free content on the internet you don't have to pay to use it. So its likely that projects using freemium services will grow. What happens if they grow. Well by default if they grow they are going to take value with them. That's not a theory those are proven facts. So you know there are people there.. " attention value" will be value there. however, in these systems with very small user bases and pyramid like ponzi's forming.. most serious people won't see them growing significantly simply because the barrier of entry is so great. You gotta have the technical know how. .then you have to pay to use the service to do anything of value in reality which in freemium services everyone gets the same use of the site for the most part.

So its alot of parts and things to look at. I use to work in mergers and aquisitions for some of the biggest investment firms in the country so i know what to look for. So i can easily predict what most of these products will do. The reason is because there is a fundamental difference in the work one does on a project and the value of the project.

In cryptocurrency the false narrative is i put in or do a million dollars worth of work and the network is worth a million dollars. That's a false concept. The network is worth what you can get for it. The networth is worth if you can liquidate assets to equal that.. or that your base can generate value in relation to that. So most social networks value is in how many users they have not how much technology they have so thats the first error made in crypto. That's why we can't ever really gauge the value of these cryptos.

That's why the prices make ridiculous moves because nobody knows lol. It's just all baloney. So in lasse's case i'd say its probably just him using cloned software and buying the price of his coin and he doesn't know what the value is. However again in this space we don't know who buys what really. We don't know if people colude many piggyback off the hive power and pull the economy of hive into their projects lol. So the earnings are really comign from hive.

So we can go on and on about this but here's what i think is important. When a crypto is purchased... What is the underlying value. is the underlying value $1.. and you're paying $2 for it? Is there any legitimate reason to believe it's worth x. So here's the deal. Forget the shameless promotion but the token who's name will not be named, lol.. let's say it grows to 100 million users because it uses a freemium service model like facebook. We know people like free but their attention value is worth alot of money. Then if someone pays $1 for it have they paid too much? Are they now buying at premium? at discount? or are they just pumping and dumping. I see some project owners buy but they never sell. So which is it? So thats the element you're missing.

Your project is way too niche to have significant value. it's specific its not enough people that's smart enough lol.. Also they aren't crypto business people or investors they are more like scientist. So all that has to be considered how niche is your tribe.. how much value can it really grow or extract?

Posted Using LeoFinance ^Beta