Economics
Token Valuation Alpha Release
Token Value
Having outlined the valuation approach, the token value (i.e. Alpha release) is solved by using the equation of exchange.
Find more details: Working Paper
The token value does not refer to market predictions or a forecasted exchange value. The token values mentioned here refer to the rational expectation that the calculated values are consistent with the data modelling of the token economy. Given the current experimental status of Plenny, the exchange value as well as the utility value are virtually impossible to assess at this stage. Due to the hybrid model combining Bitcoin with Ethereum, Plenny has the potential to extend its utility to innovative use cases that have not yet been conceived, which could increase the token’s future value in sync with the adoption cycles of the crypto industry.
Speculative exchange rates are subject to market-driven forces, which are not sufficiently factored in here. The actual market value may differ. It is important to realize that speculators evaluate tokens for their future potential following the hype in the markets. Professional traders, on the other hand, research token fundamentals and use technical analysis to value them. Ultimately, one must bear in mind that markets are not rational or predictable. The numbers shown do not qualify as investment advice and serve for educational purposes only.
