The three al model of token valuation

in #pept11 months ago

The_3al_model.png

On June 30, 2034 @fjworld introduced his favorite Venn diagram.
https://peakd.com/hive-102963/@pept-learn/an-effective-use-of-a-ppt-framework-is-a-much-for-a-successful-business-operation

Today, we look at how the PPT framework and how it can help in determining the valuation of a token. Let's call it the three al model of token valuation.

In the diagram, the token sweet spot, represents a balance understanding of the emotional, fundamental and technical elements that one needs to consider in a token valuation analysis.

Emotional is to people as fundamental is to process as technical is to technology.

Emotional

How emotionally connected are you to the token you are evaluating? Here is where you try to capture and measure hype, gut feelings and fear of missing out reaction that can drive the token's perceived value. How passionate is the founder and how loyal are the followers?

Fundamental

Here we look at the balance sheet, income statement, profit and loss information supporting the financial value behind the token of interest.

Technical

The technical element(s) is where we look at what has happened and what will likely happen base on analyzing trading patterns of actual value. There are 3 types of charts that can be used. A line chart, a bar chart and a candlestick chart. The chart you use depends on the depth of the analysis you wish to pursue and the quality of the datasets available.

Things can get very complicated inside these circle but for now, try and grasp the value of modelling. Start with a very basic representation and don't get too far in a rabbit hole when it is not necessary. If you are a human, you have some biasing. This simple usage of a Venn diagram can solidify your understanding of what drives value for a token or it can help you to pick and choose the token that will likely give the highest returns.

Hopefully this information adds value to your analysis of a particular token, or stock. Do have #Fun with it, enjoy a little #Lolz and keep your stick on the ice so you don't get #TooFuckeh

#Luv and positive energy to all.

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