Talking from NuCypher, why is $100 million a standard for future projects?

Yesterday, NuCypher announced a new round of financing, and the investment institutions were dazzling. The two rounds of financing totaled 15 million US dollars and the total valuation reached 130 million US dollars. Personally feel that this valuation is really not expensive, even too cheap. I hope that NuCypher will get another round. Because from the level of the project, it has not yet reached the level of a global consensus project such as Cosmos and Polkadot. Only at this level of the project, the exchange will be online for free. Otherwise, the project can only pay the money. $15 million, I think it’s really hard to get a good job.

I strongly recommend that the current project money be as much as possible.

First of all, considering the current sluggish environment, if the money is more abundant, the possibility of spending the winter is greater.

There is a saying that I agree. In the currency circle, the poorest is begging, and I will never die. For the project side, there is enough money in the hands to spend the winter. At this stage, PR activities can be completely reduced, but the development progress cannot be dropped at all . How to maintain high frequency, high intensity, high quality development, fight is the reserve funds. The project party can ask yourself if you have enough money to hire developers to write code. Can you guarantee that the roadmap will be completed on schedule? Delays in development progress are not good. One or two delays can be tolerated, and repeated delays are hooligans, and investors’ impressions of the project will plummet.

For ordinary investors, it is to take good quality assets in your hands and not to play futures. Playing futures will eventually be difficult to escape. Hold the spot at most to be stuck.

Why did you mention this in the cold winter of the currency circle? Because I have heard a lot of regrettable things recently, many people with a lot of money and a lot of battles can't stand the temptation to play futures and then burst out. This is the typical feature of the late bear market. Because the spot can not make money, and then hold back to the heart of the heart to play the futures, the results are out of control, unable to control themselves, broke the position.

Say back to the project side. Why do the project money have to be more integrated? Because the centralized exchange is too strong . The currency fee is a high price. I already mentioned some at the beginning of the article. This is why I hope that NuCypher will get another round, because I don't think there is a good exchange for $15 million.

If you go deeper into this question, it is why the normal currency is better than the IEO. Because of the cost. The normal currency and the IEO currency are a triangular balance between the token economy, the currency fee, and the token pricing. The advantages of the normal currency: the token economy will be slightly better, not too small exaggerated micro-flows like IEO started less than 10%. And the pricing of tokens will be lower. The downside is that the project side burns more money.

I strongly support the project party's normal currency. For the long-term development of a project, please check your normal currency. IEO's "locking warehouse" has dragged on many excellent projects.

The fundamentals of a project are no better, the team is excellent, the code is diligent, the subject matter is novel, and it is no match for IEO's lock mechanism.

Third, for institutions, a $100 million valuation project is more suitable for intervention. Take NuCypher as an example. All the institutions have joined together and invested 15 million US dollars, accounting for about 10%. The overall valuation is about 150 million US dollars. We assume that 20 institutions have invested, and each institution has invested an average of $750,000, or about $4 million. If this is the case, it is still a suitable investment volume.

Many people think that NuCypher is too expensive. Let us consider it from the perspective of the organization. Assuming an overall valuation of $15 million, according to the above algorithm, each institution will invest around 400,000 RMB. Only 400,000 RMB. Just kidding. The organization has not enough teeth. A slightly normal organization, if you only invested 400,000 RMB in a project, you must be ashamed.

Of course this is just an extreme algorithm. We will look a little longer and look at the projects that will be launched on the main network in 2020: Solana, Near, Coda, Nervos, Polkadot, etc. If there is a project with a valuation of less than $100 million, I will broadcast it.

Fourth, for mainstream investors, projects with valuations above $100 million are easy to intervene in the secondary market. To put it simply, you buy 1 million RMB in the secondary market, and how much the currency will fluctuate. If it rises by 30% or more, then this is not a good intervention target. Because it is in the currency circle, the demand is reduced: 1 million RMB to buy goods, within 5% of the fluctuations, then the target is still decent.

I feel that I have grown up in the currency circle. Because I finally grew up from a leeks that only looked at the market value of circulation to a leeks that looked at the market value of circulation and the overall valuation. There is one more indicator, but the nature of the leek has not changed.

The era of looking at the market value of circulation has passed. The future cryptocurrency market will become more mature. Why did we not look at the overall valuation at all? Because making money is too easy. 3 times a day. 10 times in 2 days.

Today we translated an article on the Coinbase effect. I took it back to the memory of the past. When I remembered it for 17 years, the biggest Fomo point of the 0x Protocol project was: it was going to Coinbase. Such a simple, unpretentious happy time is gone forever.

Everything is changing, the currency is changing, and it is changing. The only constant is the change itself.

If you read the full text, you may still feel uncomfortable, or feel that these projects are too expensive. But what Soso wants to tell you is that this is the historical process of the currency circle, and it will not change because of the will of the individual. It’s not even a will, it’s just a wishful thinking that is based on your interests.

Accepting reality is the basic self-cultivation of adults.

Author: cable old man