1、Fundamental Value in CryptoA Proposed Framework for Tokenomics and Valuations Part I:Payment CryptocurrenciesGrayscale Insights|December 2Fundamental Value in Crypto|2022 Grayscale Investments,LLC123456Please review important disclosures&other information at the end of this paperINTRODUCTIONA propos

2、ed framework for how to value crypto assets that encompasses correlations,supply issuance,competitor analysis,network effects,and security/decentralization checksIn times of market turmoil,believers in the long-term potential of cryptocurrencies urge savvy investors to look beyond a crypto assets pr

3、ice to uncover value.But what does that mean in practice?How should investors think about value?After all,the diverse nature of the crypto ecosystemincluding various types of assets and their respective economic mechanismsmakes it difficult for even sophisticated investors to think about how to thou

4、ghtfully ascribe value to these assets.To address these complexities,we have created a series with the purpose of proposing a framework for investors to use fundamental and market data to help evaluate the value of crypto assets.How do you value crypto?First,we need to differentiate between crypto a

5、ssets and traditional investments.Since most traditional investments,like equities and debt instruments,have relatively predictable cash flows,they are typically valued based on the present value of future cash flows using a discount rate that coincides with their level of risk.By using a combinatio

6、n of a companys income statement,cash flow statement,balance sheet,and projections on financing costs and revenue,financial analysts can typically arrive at a valuation.Crypto assets are different.To determine the value of a token,it is important to consider several factors,among others:Fundamentals