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Dear country without banks
We publish Token Ratings on the first Friday of every month. Today is that day.
Bankless Token Rating is ~entertainment only Analysis of whether a particular token should be bought, held, or sold based on a valuation model.
This month we will cover:
🆕 DPX, IMX, ILV
🔄 Atom, DYDX, MPL
The first token is available to everyone, the rest are private Bankless Premium Subscriber.
Ben provides alpha today.
– bankless team
🚨 None of the information in this article is financial adviceAll of these are for educational purposes only. Please do your own research.🚨
author: Ben Giove, Bankless Analyst
This report kicks off analyst coverage on three tokens: DPX, IMX, and ILV.
It also updates ATOM, DYDX, and MPL coverage.
Below, we explain the rationale behind each valuation, drilling down into the driving catalysts and potential impacts on the token’s price.
We also provide a comprehensive overview of the many tokens we cover via our Bankless Token Bible!
Intended to complement ratings and valuation models, the Token Bible is a one-stop shop for all relevant information an investor needs about each token in question, including fundamentals, financials and tokennomics.
Before we delve into coverage and ratings, let’s discuss rating scales and fair value estimates.
The valuation reflects how each token performs over a six-month period compared to the performance of the entire crypto market based on market capitalization. It does not represent our opinion on the long-term potential of each token.
The rating scale is:
To inform valuations, we also provide valuation estimates for applicable tokens using a discounted cash flow (DCF) model.
These models aim to assess the core business value of each protocol based on the revenue generated by each protocol and future growth prospects. Not all protocols are profitable and therefore not applicable to all protocols covered in the report.
While these models are certainly not the only factor in determining a token’s rating, especially given the short time period in which they are created, these fair value estimates are not the price at which tokens are considered undervalued. is considered an upper bound for Anything over that is overrated.
Now let’s dive into the report.
These are the tokens that we believe will perform in line with the market over the next six months.
type: Change rating
Current FDV: $11.2 billion
ATOM has been upgraded from neutral To Overweight.
ATOM has been upgraded with the ATOM 2.0 upgrade.
ATOM 2.0 refers to a series of proposed upgrades to ATOM’s tokenomics and the role of Cosmos Hub. The upgrade includes the creation of what is called an interchain scheduler, which allows Cosmos hubs to generate revenue from cross-chain MEVs, and an interchain allocator, which allows ATOM holders to allocate funds generated by the hub across the Cosmos ecosystem. It is included.
The decision to implement ATOM 2.0 is currently being voted on by Hub Governance via Proposition #82. The proposal has yet to reach the required 40% quorum, but has 96.4% in favor and only 3.6% against in early voting.
By increasing utility and unlocking new revenue streams, ATOM 2.0 should increase demand and value generation for the homonymous token.
The upgrade will front-load ATOM issuance within the first 36 months of the upgrade, but this increased inflation could be somewhat offset by this newfound demand and new chains leveraging validator sets. (So block space) of Cosmos Hub via interchain security.
Additionally, ATOM could be used as an index token among speculators looking to gain broader exposure to the Cosmos ecosystem.