1. Today we will talk about the valuation of the FTT token, which is the backbone of the ftx trading platform. There is much information available from the ftx platform to do the valuation of the ftx token. The ftx has an estimated trading volume of 5 billion USD daily. Bur before we do the valuation of ftt we need to understand the basic thumb rule of valuation. If we don’t know what principles we are using to do valuation we can’t learn and gradually we can’t grow. So valuation principles are extremely essential to understand before becoming a smart fund manager or growing as an investor.

2. So what buffet and many others have mentioned since the last century is a simple valuation principle that if a company is making 10 Million USD in profits every year the valuation of that company is around 100 Million USD… Now how did we come to this conclusion ? …So the simple math behind this is that if you give someone a loan then you would expect around 8 to 10 % in interest from the borrower..correct? so over the period of ten years, you would eventually get your entire capital worth of money back … So a 100 percent profit….so if you can double your money in a decade it should be considered a fair deal…It is very essential to understand this principle, if you don’t understand this then you can join our telegram group to ask as many questions as you want.

3. So before I apply this method to ftx token I want to mention one important thing which is that one has to use every possible information available from the project in order to do the valuation .. every line of information from Twitter to telegram to medium blogs…every line is important because it is somewhere in those videos and articles where you will have the necessary information to do the valuation. Now let’s apply this method to the Ftx token.

4. So the total daily volume on ftx platform is around 5 billion USD and the average fee per trade is around 0.1 % so 0.1% of 5 billion is around 5 million so their daily revenue is nearly 5 million USD. Now we also need to cut their expenses but I believe that their daily expense will not be more than 10% which we can easily cover by adding just 10 % growth as the cryptocurrency market is still in its infancy stage…

Now we need to make an estimate of their ten years of profits based on knowing their daily income…

So now if we multiply 5 million USD daily income x 30 days x 12 months x 10 years then we can know their projected ten-year income which will be the valuation of this token.. so if we multiply this then we get 18 billion USD worth of valuation…

Now we can also double check this with other information available as ftx is a big platform so we can get information easily to do the rough valuation.

5. Now as you can see in this article in which they have mentioned giving a donation of their 1% revenue and as you can check on this website, out of 20 million USD worth of donations nearly half, around 11 million USD comes directly from users’ fees…Now if we calculate 1% of 10 billion then it is around 10 million ….so now it is possible that they have not yet spent the entire money…Anyways, so we are nearly there to do the valuation of FTX token ..so now at least we know that the valuation is at least above 10 billion and probably near 20 billion…Now in this calculation, we haven’t calculated the growth factor of ftx and at the same time, we haven’t calculated the new products which they can introduce in the future like Binance made binance smart chain which increased further value of BnB token…I believe that if the ftx exchange keeps maintaining the 5 billion USD worth of daily trading volume then it is likely that it has a valuation of 20 billion which is possibly 5 times the current valuation of 4 billion according to the market…So only and only if they maintain the daily average trading volume of 5 billion USD than sooner or later the price of this token can go from 30 USD to 150 USD… what this means that from the first look of analysis the ftx token looks extremely undervalued.

6. now one more thing which I want to mention here is that the current valuation is only applicable if they can maintain this volume and for this, one has to identify the level of monopoly this platform carries in the exchange market because there is a lot of competition in this market…and one more important thing which I wanna mention here is that the price of this token to reach 150 USD can take some time ..in fact, it can take a year for the market to realize that the token is undervalued…but sooner or later price follows the value…So that’s where the role of the long-term coin comes in …..

7. so one year is a pretty long time for the price to correct and you cannot even take leverage in such trades so you are left with only one option and that is to increase the capital to invest in ftx token..now a lot of people can have limited capital to invest and that’s why long term protocol gives capital to invest if you are a skilled fund manager who either sensibly understands valuation or carries trading skills.

8. As you can see this article in which there is 50% weightage given to the amount of long-term coin you buy from our token sales and the remaining 50 % is given to the returns you give consistently on all these defi protocols like enzyme finance and a couple of other protocols. So earlier you own long-term coin lesser returns you can afford to give and still will be able to manage funds in higher amounts…it might sound a little hard to understand initially but you can join our telegram group and ask as many questions as you want to understand the protocol. link for telegram is available in the description. We will happy to assist you. Your commitment to understanding our protocol can make and break a lot of things for you… Go through our medium articles and our youtube videos to understand how owning more and more long-term coin can help you massively to claim more and more funds to manage because even if you have skills in buying undervalued assets you will need increased capital to invest without getting liquidated.

9. So becoming a fund manager and managing other investors’ funds is hard but we believe in your skills and that’s why we are inviting you to understand our protocol and start claiming funds to manage. Here either you can own fewer long-term coin tokens and give higher returns or you can own more and more long-term coins and can afford to give lesser returns and still be able to claim massive amounts of funds to manage. In long-term coin protocol, everything balances out itself. That's why we call it a self-sustaining protocol. I hope you all enjoyed this video and if you did enjoy then please subscribe to the channel and like the video.