Tai Zen: What’s up guys. This is Tai Zen. I got my buddy JW on the line here. JW and I were just talking about the value of Ethereum, the value of Augur, the value of the DAOhub ICO right now. I was just explaining this to JW what my belief systems are about it and I just want to share with you
Now, I’m looking at CoinMarketCap.com and the information on the Ethereum. They’re the number 2 most popular, most traded cryptocurrency. It shows their market cap is $79.2 million. In case you listen to this and you’re new to market cap, it means you look at how many Ethers are available in the market, and there are $79 million Ethers available. Each one is worth around $10.
I just do simple math so that you can land it off. If you take $80 million Ethers available in the market, then multiply it by $10, that’s about $800 million worth of value for the entire Ethereum network or the Ethereum blockchain. At one point, it was up to like almost a billion USD worth.
On Wall Street, they call that the market cap. You take the number of shares or coins that are available on the market and you multiply it by its value. That’s how you come up with the market cap. It’s how you do the simple math for it.
If the current market cap of Ethereum is at $800 million, and I’m just rounding it off, so the math is easy, JW. Let’s say that there are 135 million DAO tokens available. The DAOhub has raised $13.5 million so far in the last 3 days. It’s not even full 3 days yet.
JW: Let’s assume that it’s going to be between $50 million and $100 million.
Tai Zen: Let’s just say that they raised a $50 million minimum that Leonfu.com, the oracle of Austin, Texas and I had predicted. It’s not how much they raised. It’s when the DAO tokens are available for trading on the open market or how much they are going to be worth.
In my opinion, the DAO token is not that spectacular like the Lisk. They’re a competitor to Ethereum. The reason I say it’s not a huge competitor is they don’t have a genius like Vitalik Buterin, the founder or the inventor of Ethereum. That’s why I say that.
However, that doesn’t mean it’s not going to work. I don’t want anyone to take it the wrong way. I mean we’ve seen a lot of software projects that are crappy and they become a big hit. I mean look at Microsoft Windows. Everybody knows it’s garbage but it’s a big hit, right? Something is not good does not always mean that it’s bad. They raised over $5 million, so that’s still very good.
What I’m saying is that when you look at the value, let’s just say that they raise $50 million, that would be about 5 times or maybe 4 times that they have right now. Right now it’s $13.5 million, so it is around 4 times.
In case you’re listening to this, Leonfu.com is my friend. His name is Leon. He’s really nerdy and is really technical about cryptocurrencies, so we make fun of him and we call him Leonfu.com. So don’t even bother running to his website because that’s just what we call for fun!
Back to the point, we will take the $50 million and divide it by the $13.5 million they just raised. It’s about 3.7 times. If we multiply that by the 135 million tokens that they’ve already produced, we’re going to come up with like 500 million tokens. If they raise $50 million as Leonfu.com and I projected, they are going to have about 500 million DAO tokens available on the market.
Let’s assume that each DAO token is worth $1, so that would make it worth $500 million. That means Slock. It, the DAO tokens and everything will have a market cap of $500 million.
Furthermore, this $500-million market cap cannot be separated from the Ethereum blockchain because they’re using the Ethereum blockchain as the backbone, as a highway for their business.
Therefore, in my opinion, if you take the $500 million of the market cap or the value of the DAOhub and Slock. It, then you add that on top of the Ethereum, $800 million market cap, so now the entire Ethereum, plus the DAOhub and Slock. Its network is worth $1.3 billion now.
JW: Would it be anything else running over the Ethereum blockchain? Would it be another Slock.It?
Tai Zen: Let’s say that the gambling site or the prediction market site of the software, which is the Augur, comes out and goes on top of it, then it is probably worth another $500 million.
Between the Augur and the Slock. It, I actually have more faith in the Augur gambling site than I do in the Slock.It. The reason is the Slock. It requires hardware and software.
If there is anybody on our team that experience with hardware, it’s you. You know how much hassle it takes to get something manufactured in China, brought over to the US, got it to work and gone through all the laws and the regulations to make it work. You come from the east coast so if anybody knows how pain the butt it is to get something from China into the US and make it work and available to the public, you would know.
To let the listeners know more about that when you talk about the Chinese are trying to skimp out on whenever the locks are being made in China. Could you elaborate on that?
Well, I mean when you’re making stuff in China, you need to have quality control on your product. You have to have a testing guy, who does in-line testing and test the product before it leaves China before it gets knocked up. Hopefully, these guys are using a reputable factory. I mean the stuff is being made already with some sort of technology right now. I mean we saw the master lock you can open wirelessly by using your iPhone.
Tai Zen: Yeah. You sent me some brochures about the master locks. They have an app now. The master lock has their hardware including computer chips in there where you can open it with a cell phone.
JW: I remember reading some articles that they use a lock company, so I’m sure whoever they using is probably a decent company that has some sort of quality control came in place and they’re already making a lock.
It’s not like they’re just outsourcing it to a random factory. It’s going to front save a dime or a quarter and wash the project. Hopefully, it is not. Even big electronic companies are not soldering something right and stuff goes wrong.
Tai Zen: Does that make sense to you about the valuation and the mark cap that I was just discussing?
JW: Absolutely. Back to that valuation with Ethereum, if they have a bunch of stuff eventually riding over this which we really feel comfortable, they will.
Tai Zen: Each time an app rides over or when the Augur prediction market comes out, I believe that’s going to be a big hit. Man, it sucks because I missed out on that one. I and the whole dream team over here missed out on that one. That’s something that we were not aware of.
JW: You’re not going to miss too many more.
Tai Zen: I mean you win some, you lose on this. That’s part of the game.
JW: What I was thinking is that Ethereum could eventually have 1 trillion USD worth of stuff riding including different companies, the betting sites, this and that. It could easily be 1 trillion-USD over time, right? Maybe it’s not the actual evaluation itself that as you expected. For what’s going over the Ethereum network., I mean they can reach that number is probably a couple of years.
Tai Zen: I believe that with the Augur, Slock. It and there’s more to come when they fill their entire network, software, and service over the Ethereum blockchain, it’s only going to increase the value of the Ethereum. I mean look what happened when they did the ICO for the Slock. It right now.
Tai Zen: That just bumped up the price of the Ethereum. They went from like 16, 17 millibit to 22.
Besides, I don’t think in terms of USD. Here’s the reason why. As I said, Leonfu.com likes to think in terms of USD. I know you do too. However, I and Eric think in terms of millibit because what are you using to buy the others?
JW: Using Bitcoin.
Tai Zen: Exactly. If you’re good at math, you can think of all of them. But for me, I’d rather just think in terms of millibit because that makes it easier for me to think about all the cryptocurrencies that I’m investing in. When I look at my trade log and my investment laws, I can see that everything’s in millibit.
JW: By the way, before we hang up, I talked to the Oracle of Boston today.
Tai Zen: Oh the Oracle Boston! You’re talking about James D’Angelo.
JW: I did.
Tai Zen: What he say?
JW: He is very busy with a whole bunch of things that he’s working on. He was feeding his family when I called. It was a short conversation but…
Tai Zen: I want you to know that he’s like the Einstein or the Carl Sagan of Bitcoin. He is the Oracle of Boston like Leonfu.com is the Oracle of Austin, Texas. He actually has to make investment calls on the cryptocurrencies and he’s a kind of changing the world. He’s not making money like you and I have discussed before.
Let me go ahead and wrap up this call so that our listeners can check it out. Thanks for listening to this call. If you guys like what JW and I had discussed, give us a thumbs up so we’ll know to continue it. If you don’t, give us a thumbs down that we’ll know not to waste time making more calls like this.
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