$94,000 — Genesis Vision Token (GVT)

You’ve heard it, I’ve heard it, we’ve all heard it. This meme has been everywhere.

“Ninety Four Thousand Dollars”

Whether it is on Reddit or the Genesis Vision Telegram, you’ve probably seen “$94K!” as a cheeky response to frequently discussed price predictions.

But is it really possible?

How can a single Genesis Vision Token be worth such an astronomical figure???

Follow me down the rabbit hole, and I will show you…

The video above actually does a very good job explaining the basics of calculating the minimum value of a stock. Once you calculate the PRICE MINIMUM a stock is worth, you can then look at the current market price and determine if it is overvalued or undervalued. From there you can make investment decisions based on calculated disciplined thought instead of speculation or FOMO.

As described in the video, Danny focuses on figuring out how much the assets are worth for “New England Wire and Cable Co”.

He focuses on things such as: Equipment, Land, and Cash. These are things that are quite easy to value, and to be conservative he decreases the estimated value by 20% just to make sure he does not over value the company.

1. Assets

For GVT, the primary asset we will focus on is “Assets Under Management” This is how much money investors have put into the GV platform to invest.

The PRICE MINIMUM for GVT can not be lower than the assets under management in the Platform divided by the number of Tokens outstanding

^READ THIS 3 TIMES^

(source “The net asset value per share (NAV) is the value of the fund per share and is equal to AUM divided by the number of shares.” — Columbia Business School https://www0.gsb.columbia.edu/mygsb/faculty/research/pubfiles/3948/Hedge%20Fund%20Leverage.pdf (bottom of page 3.)

Lets now demonstrate the PRICE MINIMUM concept on GVT

According to the white paper:

“Considering our more than 400 contacts with brokerages among our partners and advisers, we expect at least 100 brokerages to join our distributed system within 2 years.”

Here is what we can extrapolate:

100 brokerages to join within the next 2 years

Each broker on average has 226 clients (See the Forbes article)

Each client’s average account size is $78,469

To calculate assets under management (AUM)

(100 Brokerages) x (226 Clients) x ($78,469 Avg Acct Size)

= $ 1,773,399,400 Assets Under Management (AUM)

$1.77B/4.4M Tokens= ~$400 per Token

Is $1.77B Assets Under Management (AUM) in 2 years realistic for GVT???

Yes, also per the white paper the current addressable market is $70 Trillion in 2015 and projected to be $100 Trillion by the year 2020