Sir John Templeton, known as the “greatest global stock picker of the century,” made his fortune by investing in undervalued assets using a mathematical approach. He famously invested in Japan after World War II, buying into companies that eventually rose from the ashes and netted him a fortune. Today, the world of crypto offers similar opportunities for investors who are willing to look beyond the hype and focus on the numbers.
In the world of crypto, very few investors think of cryptos as “companies” and their tokens as “stocks.” This lack of understanding creates opportunities for those who do their research and analyze the numbers. By looking at metrics like Daily Active Users, Fees, and Market Capitalization, investors can identify undervalued crypto assets with strong user bases and clear pathways to future revenue generation.
Daily Active Users (DAU) is a key metric that shows how many people are using a crypto project or platform each day. Just like a traditional company needs customers to be successful, a crypto company needs users to thrive. By analyzing DAU, investors can gauge the health and growth potential of a crypto company’s user base.
Fees are another important metric that indicate whether users are willing to pay to use a crypto product. This shows if a crypto company has a viable revenue model and if its product is valuable enough for people to invest in.
Market Capitalization and Price are useful for comparing the relative size and cost of different crypto companies. While a high market cap may indicate an established company, a lower market cap could suggest higher growth potential. However, price and market cap alone do not reflect a crypto’s true worth and should be used in conjunction with other metrics.
By combining quantitative analysis with qualitative analysis, investors can make informed decisions about which crypto assets to invest in. Understanding the numbers gives investors a competitive edge in the crypto market and can lead to lucrative investment opportunities.
As more people realize the importance of looking at the numbers in the world of crypto investing, this approach will become more common. For now, investors who take the time to analyze the numbers have a significant advantage in identifying valuable investment opportunities.
