FTX Token is Undervalued Supported by Income Approach and Comparable Analysis——FTX Token(FTT) Valuation Report
TokenInsight has recently evaluated FTT, the FTX’s exchange token. The report provides a comprehensive analysis from the aspect of token economics, token’s utility, token valuation etc. TokenInsight will publish token evaluation reports on a regular basis. Stay tuned for more!
SumUp:
FTX token is undervalued supported by income approach and comparable analysis. The market perceives a significant growth of
the FTX platform in the near future. When the rating of FTX exchange upgrades just 1 notch, the fair value of FTT doubled, assuming all other factors are kept the same.
Executive Summary:
The income approach (DCF analysis) has put the fair value of FTT at $3.57, we believe this represents a lower bound price due to current risk premium.
Income and comparable approaches concluded that the FTX token is currently undervalued.
The FTX platform has a certain first-mover advantage in the cryptocurrency derivatives market.
Alameda Research has incubated FTX which helped FTX to have industry-leading order books from day one.
The recent launch of leveraged token trading on Binance and gate.io has a significant positive impact on the growth of the FTX platform.
The Binance strategic investment in FTX and listed FTT token on Binance trading platform further demonstrated the recognition of FTX platform in the industry.
The launch of unique products such as the 2020 USD presidential election futures contract and Gold futures, leveraged, and spot market demonstrates FTX’s consistent innovation in the industry.
Risks
Negative regulatory policies on the cryptocurrency industry might have a correlated impact on the exchanges’ business and will directly putting downside pressure on the price of FTT
Market cycle has a strong influence on FTT price
Contract index pricing is still vulnerable to flash crash issues
FTX as a trading platform is still in its early stage, team stability and synergy still need to be tested by the market
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