How much does it cost to build a project with a market value of ETH1/3?
Understand the panorama of encrypted assets through a brainstorming question.
Yesterday a friend asked a question: How much does it cost to build a project with a market value of ETH1/3?
Structure of this article:
Structure of this article:
two ways of thinking
One is to directly calculate funds: the sum of various expenses
The other is indirect calculation of funds: industry comparison
first define the problem
What is the market value of 1/3ETH?
How much money do you mean?
reference frame
Using Tezos as a benchmark:
Based on Polkadot:
secondary title
To sum up
two ways of thinking
One is to directly calculate funds: the sum of various expenses Calculate such a market value, the number of people needed, marketing expenses, technology development expenses, market-making funds, community funds, office rent, daily expenses, taxes and other expenses. The other is indirect calculation of funds: industry comparison This topic itself is a peer comparison (comparison with other project parties). Even if you are as precise as the monthly water bill is a few cents, the conclusion you draw is quite deceptive, and the details of the cost are likely to be impossible to estimate. Yes, unless you have already worked as a project party, you also need to be a core member of a large project party. So the first method of direct calculation is temporarily abandoned. secondary title The background of the team is no longer discussed. Those who can have this idea have a very strong technical background and investor background. Or a brain hole player. What is the market value of 1/3ETH? ETH market cap is now: $51.1 billion Achieve ETH1/3: that is, 17 billion US dollars How much money do you mean? It is impossible to get the money needed by yourself. At present, none of the big project parties in the encryption world get the money by themselves. This is the same as the venture capital world. Start a business with investors’ money, and share risks and benefits. The current market value of USDT is $17 billion, which is exactly one-third of the market value of Ethereum. List the market value of several coins Link: $4.4 billion DOT: $4 billion EOS: $2.3 billion TRX: $1.8 billion Financing (data reference below) EOS: about 4 billion US dollars (this is not a private placement stage, it can be ignored) Telegram: $1.7 billion (there is a problem with this TON currency, which can be ignored) Filecoin: $257 million Polkadot: $175 million (this figure will be specifically mentioned below) Tezos: $230 million (currently ranked 16 with $1.555 billion) The project parties with the largest financing amount. First, the amount of financing is not important, but if it is less than 100 million US dollars, it is basically useless. Unless Satoshi Nakamoto is resurrected to make a coin. secondary title Using Tezos as a benchmark: If the project develops normally, according to XTZ, the financing is 230 million, which is close to 7 times. Follow the same growth factor. Note: This is not the multiple of the market value, but the multiple relationship between the current market value and the amount of private equity financing at that time. 170/7 = $2.4 billion. To achieve a market value of 17 billion, financing of 2.4 billion U.S. dollars is required, which is a general situation of development. Based on Polkadot: If you take Polkadot, one of the fastest-rising projects in 2020, as an example.first define the problem
reference frame
The financing reached 235 million U.S. dollars, but it took nearly three years before and after. It can be considered that the first start-up money was 175 million U.S. dollars.
Gavin took it for three years and is now worth $4 billion.
40/1.75=22.85 times, this is the comparison between the market value and financing amount of the year.
If a project is to reach US$17 billion, 170/22.85=US$740 million.
Therefore, the range can basically be calculated to be between US$7.4 and US$2.4 billion.
Benchmarking ChainLink: An Unexpected Project
There is one exception, and that is ChainLink.
In September 2017, they raised 32 million US dollars, which is a dark horse among dark horses. Before 2020, it is estimated that few people will think that this project can reach the top 10 in market value. Even surpassing the market value of Polkadot and Litecoin in circulation, Polkadot's success is almost everyone's expectation, and Link is a surprise.
Now Link has a market cap of $4.4 billion.
44 ÷ 0.32=137.5
170/137.5=124 million.
This is a very idealized result. In other words, the amount of financing cannot be lower than 124 million US dollars, considering that public chain projects are becoming more and more difficult to do. So at least 200 million US dollars is required, and financing 200 million US dollars is a psychological price.
In fact, according to the above, the amount of financing should be between 700-240 million US dollars.
At present, almost no projects can raise so much money, and it is still possible to raise funds through public offerings. It is the first step for success to reach more than 100 million or 200 million U.S. dollars in private placement rounds.
It is possible to absorb another 500-100 million US dollars through public offering in the second round.
To sum up
To sum up
One-third of the market value of ETH is 17 billion US dollars, ranking third in the world.
To achieve a project with a market value of 1/3 of ETH, the required private placement financing cannot be less than 200 million US dollars.
It is best if the amount of funds that can be allocated reaches more than 700 million US dollars.
