Original author: Bugsbunny—e/acc, crypto KOL

VC Cost Bottom-fishing Guide 1.1 (Revised Chinese Version)

Boldly provide you with a bottom-fishing reference that may be unique in the entire Twitter from the perspective of "market value-valuation".

1. Let me explain the meaning of "market value is 1-2 times valuation" in this table

If VC cannot bring more than 2 times the return, they would rather buy BTC directly (cold knowledge: BTC rebounded by nearly 80% this year).
When the coin price is at 1-2 times the valuation, the project party is like buying back the coins in the hands of VC.
(The biggest selling pressure of altcoins is unlocking coins) At this time, there is nothing to smash, and market makers can inject liquidity at this time.

2. Why not look at the seed round valuation?

VCs may only win one out of 50 seed round projects, and they should make money.
In addition, the valuation and unlocking date of seed rounds are confusing and unpredictable.

3. Why look at Market Cap instead of FDV?

Most blockchain projects are difficult to operate continuously for more than 2 years, while FDV starts at 5 years.
If calculated by FDV, the meaning of this table will be very poor.

4. How to use this guide?

Green is the price of the coin with a market value of 1-2 times the valuation;
Blue is the price of the coin with a valuation of 2-3 times;
The unfilled color is the price of the coin higher than three times the valuation;
Red is the price of the coin that falls below the valuation;
In theory, market makers need to maintain their market value in the range of 1-3 times the valuation, because there is no more room for decline(this is not the only indicator to measure, but an indicator that cannot be ignored).
Then the coins that maintain strong coin prices, such as coins with 2 times valuation or above (blue mark or no mark), mean that market makers are better.

5. Some projects do not have valuations, how do they get valuations

Data source @CoinMarketCap@RootDataLabs, token unlocks, thanks to the data support of these three service providers.
Some projects do not have PR valuations, so we can only dare to try to make valuations, please be gentle.

6. Note: Pay extra attention to the yellow part, which is the currency to be unlocked in May and June, which will bring additional selling pressure to the market

The table will update the relevant data after unlocking.

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