Updated IAM Token Valuation — 3/17/21
*All numbers are as of 3/17/21*
It has been a little over two weeks now since we officially launched ICON Asset Management and the IAM Token! Our team wants to thank everyone for their support with building this project. I wanted to write this brief article updating people on a few stats, as well as the size of the AUM and the updated IAM token estimated value.
ICON Asset Management is currently the #3 ranked P-Rep on the ICON Network!
- We have a total of 26.7 Million Votes from 1,794 Voters
- We have voted on all 10 CPS Proposals
867,467.15 TAP = 8,848.16 ICX (0.0102 ICX/TAP) = $16,280.62 ($1.84 ICX/USDT)
74.63 SEED = 3.0 ICX (0.04 ICX/SEED) = $5.52 ($1.84 ICX/USDT)
545 ICX (Staked) = $1,002.80 ($1.84 ICX/USDT)
662 ICX (Trading Portfolio) = $1,218.08 ($1.84 ICX/USDT)
TOTAL: 10,058.16 ICX ($18,507.01)
IAM Token Estimated Value:
I will be using the same two valuation techniques as before to come up with the updated IAM Token Estimated Value (Share of AUM & Dividend Discount Model).
AUM: 10,058.16 ICX.
DDM: 867,467.15 TAP is expected to receive 26.95 ICX/day based on historical returns of 1M TAP (.867 * 31.07). 545 ICX (Staked) is expected to receive 0.16 ICX/day based on the current staking rewards rate (545 * .1065 / 365). Using the current staking rewards rate of 10.65% as my cost of capital, the dividend discount model says that these dividends are worth 27.11/.1065 = 254.55 ICX.
Add those two values together, and our AUM is currently worth 10,312.71 ICX (10,058.16 + 254.55). Now since each token “owns” 0.00001% of the AUM value, this means 1 IAM Token is worth 0.0010313 ICX. In current USD prices, that means 1 IAM Token = $0.00190 (0.0010313 * $1.84).
On March 1, I calculated that the initial token estimated value of 1 IAM was 0.0003343 ICX. This means that in just over two weeks, the price of 1 IAM has increased by 208% ((0.0010313–0.0003343)/0.0003343)!
It is irrational to believe that our fund can continue this growth over the long term due to the law of diminishing returns. However, this should be a beacon of hope for investors/community members on what the long term value of IAM could be.
As always, we are open to receiving feedback, so if you feel this is an inaccurate valuation, feel free to show us your model! Model building is highly subjective, and token valuation of something so young can be speculative, this is not financial advice!
-Shikamaru, Paolo and Geo