Are the Days of 100x Over? - Utility Token vs Security Token Valuations

With utility tokens, it's nearly impossible to give an accurate 'marketcap value' since the tokens are not backed by equity. This means predicting 100x to any accuracy with utility tokens is technically not possible and is 100% hype-driven.

Security Tokens allow for measurable, realistic and tangible valuations based on earnings and P/E ratios, since each token represents real equity, exactly like a stock.

Preflogic is issuing equity at a fraction of the marketcap of other issuance platforms, and is set to do mass amounts of more volume. We are positioned to undercut the price of any issuance platform today, and are the only platform of them all that is offering equity to retail investors, like you, right now.

Preflogic takes an issuance completely turnkey. Others, like Ravencoin, either only offer bits and pieces of the puzzle, or are completely overpriced.

Preflogics equity sale is happening at marketcap of sub $15M.
In comparison, Ravencoin is valued at $150M, and that's for only its utility token.

Security Tokens are going to change the face of digital finance, and are fully set to be the next major wave in the crypto space.

I believe in investing in the cow, not the milk.
For example, investing in Ethereum, rather than individual utility tokens, heightens your percentage of you riding the crypto wave to success, regardless of how individual ERC20 tokens perform.
Investing in the leading cannabis growers is safer and more predictable than individual suppliers and products.
Similarly, investing in issuance platforms, rather than individual projects themselves, casts a wide net, very likely setting you up for the highest chance of success, if the digital security space as a whole takes off.

Buying the cow, not the milk is the way of the wise.

Check out this article for a factual numbers-based breakdown of the potential ahead.
https://medium.com/@UnicornHunter/preflogic-market-cap-potential-83265cef98e2


Image source
http://fintechranking.com/2018/05/29/utility-vs-security-new-10-trillion-tokenisation-wave-approaches/

COMMENT

20

Julescape Crypto
06 Nov

Thanks Jeff, very probable that at this point in the bitcoin and crypto evolution, we may be past the days of 100x in general tokens and even bitcoin. The price curve eventually slows down or levels out, with less parabolic rise like in previous years as bitcoin finds its true value. 

$1million bitcoin is spoken of as a target one day by some, and that may well be possible though still a dream. 

I read the link you shared regarding Preflogic and it is slightly complex and for the wealthy, though the idea you mentioned of investing in the cow instead of the milk makes complete sense. Investing in Ethereum rather than any ERC20 token is valid for sure. Some investors try to catch new projects early on hoping they will also go to the moon and their early adoption benefits them more significantly, but the chance of choosing the right winning platform or project is high risk, hit and miss. So the established Ethereum platform seems a safer investment, for sure. 

19 REPLY

22

Sincere Helper
06 Nov

I personally experienced in past one famous website bubblews. The website grow rapidly and attract much users but right after 2 years I think domain is also expired lol.

9 REPLY

24

preview not available Jeff Kirdeikis
06 Nov

Nailed it!
Catching the "moonshot" projects are incredibly difficult and high risk.
Established "Parent Platforms" like Ethereum are really wise options to be hedged for market adaptations.

As for 100X days being behind us, I don't think so though!
How many people use bitcoin or smart-contracts in their every day lives?
Less than 0.1%
Just wait to see marketcap growth once that number gets closer to 75%!!
We are still VERY early!

Security Tokens have bearly even gotten started,
100X potentials are very real over the next few years.

13 REPLY

20

Julescape Crypto
07 Nov

Great to hear your forecast there Jeff, 100x would be great. Perhaps my bearish nature is coming through a bit. Good to get you objective perspective.

5 REPLY

10

Snow Under Sun
07 Nov

Crypto currency sector is similar to cellular ( mobile ) phones development stages.

when I joined crypto in 2015 , there was only Bitcoin and few more coins. Even ETH ico comes later. That times were same using Motorola 5200 in 1994 for call only. No utility, no security, no sub features.

In 2017, market evolved. Such as using Motorola I1000 to Startac with radio, internet browser, VGA camera... market filled with many projects which offer wide range features. Frenzy times in mobile phone sector and boosted sales figures ( remember 2017 bull run ). x100 in that times...

2018 and 2019 were similar to last times of conventional mobile phones before Iphone and Androids come. try to survive and offering "not different " differences. 

Now we are near to threshold for who will evolve and who will be in the history. Who invest in the cow will be the new Samsung and who invest ro milk will have similar fate with Ericsonn or Nokia. 

sorry for comment too long to read, habit from writing OC :)

15 REPLY

24

preview not available Jeff Kirdeikis
07 Nov

Agreed, we are 100% at a time-threshold right now and are ready for big platforms to take the stage

8 REPLY

20

preview not available Betty Ozemoje
06 Nov

Great analogy from you Jeff and easy to comprehend too

Who wouldn't prefer cow??? Security token gives more leverage

13 REPLY

22

Sincere Helper
06 Nov

Just wait and then we all admit this thing that security is rewardable more as compare utility.

8 REPLY

20

Mohammad Imran
06 Nov

No doubt, security Tokens are more valuable as compared to utility tokens. And the time is not far when everyone would like to invest in security Tokens.I totally agree that security Tokens will lead the digital finance in the coming days. 

13 REPLY

12

Matthew Rosenquist
06 Nov

Security tokens probably make people who want the quick bucks of ICO's a bit nervous.  It is easy to escape with other people's money, when there is no real value committment.  

8 REPLY

24

preview not available Jeff Kirdeikis
06 Nov

Which do you think are nervous? Issuers or investors?
4 REPLY

12

Matthew Rosenquist
07 Nov

The fraudsters!  :)

It would be much more difficult to swindle money from investors with security tokens.  With utility tokens, it is like taking candy from babies.

3 REPLY

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Security tokens are cryptographic tokens that pay dividends, share profits, pay interest or invest in other tokens or assets to generate profits for the token holders. This takes care of the liquidity issues.

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