Initial IAM Token Valuation
We’ve had a lot of people in our telegram channel asking about the valuation of IAM Tokens. While everyone has their own way to price things, and even though it is VERY early to make a proper valuation, I am going to try and do my best to value IAM strictly on fundamentals.
There are two different strategies that I will be using to value IAM. 1) Based on the percentage “ownership” of the AUM by each IAM Token. 2) Based on the “Dividend Discount Model”.
If the AUM were to be liquidated, the liquidation value would be distributed to IAM Token holders based on the amount of tokens they own. Initially, the founders have contributed 300k TAP to the AUM. 300k TAP can be exchanged for 3,261 ICX currently on Unifi.
300k TAP is expected to receive 9.66 ICX/day based on historical returns of 1M TAP (.3 * 32.19). Using the current staking rewards rate of 11.69% as my cost of capital, the dividend discount model says that these dividends are worth 9.66/.1169 = 82.63 ICX.
Add those two values together, and our AUM is currently worth 3,343.63 ICX (3,261 + 82.63). Now since each token “owns” 0.00001% of the AUM value, this means 1 IAM Token is worth 0.0003343 ICX. In current USD prices, that means 1 IAM Token = $0.00063 (0.0003343 * $1.90).
Now this value might seem small initially, but one needs to keep in mind that this is BEFORE our initial release. With a constantly growing AUM and many passive income assets, it isn’t hard to see exactly how valuable IAM Tokens can be in the future.
We are always open to receiving feedback, so if you feel this is an inaccurate valuation, feel free to show us your model! Keep in mind though, these tokens are being airdropped for FREE…