Digital Token Valuation: Looking for a New Gold Standard?

Roberto Moro-Visconti () and Andrea Cesaretti
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Roberto Moro-Visconti: Catholic University of the Sacred Heart

Chapter Chapter 11 in Digital Token Valuation, 2023, pp 355-393 from Springer

Abstract: Abstract The economic valuation of digital tokens cannot ignore the valuation and financial effects of their underlying (historically represented by the “gold standard”). The consequence is that, despite various proposed approaches, the valuation of tokens with no underlying (such as bitcoins) and of tokens pegged to fiat money, precious metals, or cryptocurrencies is almost impossible. Alternatively, making economic valuations of digital tokens linked to decentralized finance projects that incorporate rights to financial returns is possible. However, the formulas must be adapted to the specific characteristics of decentralized finance. Investors can take an active or passive role and, therefore, have a different view of the expected return on their investment. In this chapter, we investigated even if this classification is a further discriminating factor in the choice of method of valuation.

Keywords: DeFi; Blockchain; Token; Crypto asset; Market valuation; Tokenomics (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-42971-2_11

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DOI: 10.1007/978-3-031-42971-2_11

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