Should you be optimistic about optimism (OP coin)?
optimism is another scalable blockchain emerging after Solana, fantom, polygon, and I'm sure many more. The real question is, is it undervalued or overvalued?
Let's start with the basics to understand the valuation of optimism with a simple method of comparing it with its colleague blockchain and smart contract platform fantom. This is the easiest and fastest way to get an idea about the valuation of the optimism coin. Fantom carries around 1 Million transactions per day with a market cap of 1 Billion USD and optimism carries around 200,000 transactions per day with a market cap of nearly 450 Million USD. As you can see here that optimism has nearly 1/5 volume of the daily transactions carried out by fantom it still has a market cap of 1/2 of the fantom project. This definitely gives us the basic idea that it is a little overpriced in comparison to the fantom project but trust me this is just a start and we can be totally wrong because we have to give two factors a massive weightage before even trying to judge the valuation of OP coin.
The first factor is that what if the fantom project itself is massively undervalued only in terms of valuation? … To Understand whether fantom is undervalued or overvalued I would like to recommend you to watch our video on the fantom token. Fantom coin as of now looks massively undervalued at least in terms of valuation so it means that optimism is also massively undervalued. A little overvalued in comparison to fantom token but overall massively undervalued.
The second and the most important factor without which it is very hard to decide whether you should be investing in optimism is if it can grow in long term or not. Now, this requires a lot of research like if the team is passionate like we are passionate about crypto and value investing which leads us to create long-term coin protocol. Is the team committed to providing maximum value to users the way we are committed? How will the optimism team survive the competition from different blockchain smart contract platforms? because it seems that competition is massive. you will have to find out what strong advantages it carries. For example, we are carrying an advantage of our fund managers who will never leave our protocol once they become part of the protocol, and our protocol is designed in such a way that the longer the fund managers are part of our platform the better chance of them to claim and manage other crypto investors fund on defi platforms like enzyme finance, solarise finance and many more. As an investor, you need to find a solid massive competitive advantage that the OP coin can carry for a long period of time. In traditional investing terms, the word is called moat which was made famous by warren buffet. Moat means a strong competitive advantage.
To know the moat you can check how many new defi apps are being built on the optimism platform every week against other smart contract platforms like Solana. What is the growth rate of new apps being built on this platform? The higher the rate the better. you can see the list of the apps on optimism below. As I can see here on their website there are more than 150 apps already built on this protocol. The great part about optimism as of now seems that they are massively developer focused and you can see that from their Twitter page as well. This gives us an idea that their energy is focused in the right direction. The energy has to be concentrated and in the right direction because that's where the growth of the protocol is. We are also putting a lot of our energy into marketing now because we truly believe that the long-term coin protocol is highly useful for fund managers and unskilled investors.
It is very important to know how long-term coin protocol helps unskilled investors.
Because unskilled investors do not carry the proper knowledge and discipline to handle their own money the best thing for them to do is invest in the fund of the best fund managers. But it has been hard for them to find the best fund managers as a group and diversify their portfolios. In long-term coin protocol, we allocate funds of unskilled investors to our top fund managers who have been financially involved to perform well in our protocol. If they mess up in returns then they are massively punished by reducing their points which helps them claim funds to manage. So overall it is very important to understand the monopoly or the moat of the project for safe and sustainable returns.
To identify the monopoly of the project you will have to keep digging deeper and deeper. The deeper you go higher you will have the clarity to identify the monopoly. Ask questions to their team in their telegram or in their discord community. The more questions you ask higher your clarity will get. We are always ready to answer as many questions as you want in our telegram community. This builds trust between investors and the protocol team which is again very helpful for long-term growth. We believe that if the team is really committed to the protocol then they should be always concerned about answering all the questions that investors have the way we do.
One of the key weird traits of a successful team in crypto project and especially for the founder is that they should be very reluctant to public appearances or give interviews or market themselves. Yes, this is weird but true. Even if you see satoshi he never revealed his identity. There is a book called good to great by Jim collins in which he interviewed nearly 10,000 successful CEOs and what common trait he found in those CEOs was that they were very reluctant to give interviews and also reluctant to take unnecessary risks. They would better sit on the capital and wait for the right opportunity. When they hide their personalities they can focus on the core thing, the success of the project. We are also anonymous because we believe that this will be great for the success of long-term coin protocol in the longer span. So as I said it is very hard to keep going on with a competitive advantage topic for any project but overall the more time you take better the decision you will have. Ask as many questions as you can to the team. If you loved this content please give it a like and also join our telegram community to ask as many questions as you want. Visit our website long-termcoin.com and take part in our token sale as early as possible to gain the power to have massive advantage over other investors to claim funds to manage.
