Valuation Techniques for a New Asset Class

Published on
October 27th, 2020
Duration
57 minutes

Enabling Enterprise Adoption: Pushing Crypto into the Mainstream


Valuation Techniques for a New Asset Class

The Interview - Crypto ·
Featuring Richard Galvin

Published on: October 27th, 2020 • Duration: 57 minutes

Richard Galvin, co-founder and CEO of Digital Asset Capital Management, joins Ash Bennington, Real Vision senior editor, to discuss crypto as a new asset class and the various methodologies used by Galvin in an attempt to value them. Galvin uses his over 20 years of traditional banking experience to establish his approach to valuing various crypto projects and as the basis for his team's portfolio construction. He touches on the importance of having a "geographic lens" for investing in these global assets as some projects may benefit from support in their respective geographies. Filmed on October 15, 2020. Key Learnings: Crypto is an entirely new asset class, and this interview dives into how one can begin to approach modeling valuations of various crypto assets. Galvin details how he approaches portfolio construction and the examples he provides give a solid framework from which anyone can use to begin exploring this group of assets with an investor's mindset.

Comments

Transcript

  • PW
    Piotr W.
    8 November 2020 @ 00:42
    Picture is worth 1000 words. Why don't the interviewees use this opportunity to present data, comparisons, their POV's? I don't care about watching a person for 50 mins in their homes. Pls make these interviews accompanied by graphics, interesting materials, slides. Otherwise this is just a chat.
  • TP
    Timothy P.
    28 October 2020 @ 17:24
    Good job, Ash - perpetuating the "Bitcoin Maximalist" slur coined by Vitalik, founder of Ethereum. Also, you make yourselves look like crypto newbies when you rely on "marketcap" as a measuring stick, especially when comparing ETH to BTC. Ethereum is an inherently inflationary coin with no issuance cap, while Bitcoin has an issuance cap. And to make it worse, any muppet out there can make "AshCoin" and issue 3 Billion units - get one to trade at a dollar on a backwater exchange and instantly claim they have a bigger "marketcap". Real Vision crypto needs to do their homework. All I've seen recently is fawning interviews of junk projects and a very basic understanding of the fundamentals. You can do much better than this.
    • TP
      Timothy P.
      29 October 2020 @ 16:20
      Classic Real Vision Users - can't take any real criticism of the content. Any of you down-voters care to post any rebuttal? Of course not, drive-by downvotes are your only "contribution". What a joke.
    • CW
      Collin W.
      30 October 2020 @ 21:34
      Hey Tim, here is an idea....instead of criticizing, let's hear your crypto brilliance. Please educate our poor incompetent souls with your greatness. I am on the edge of my seat waiting to hear how you handle tokenomics across multiple tokens when each token has different characteristics. Please breakdown for Bitcoin which is really centered around scarcity and market adoption vs. ETH which is needed for each transaction vs. other coins which are staked and earn % returns every 5 days or so. I'd also love to hear how market cap factors in to your analysis as it is a relevant data point.
  • JB
    Jack B.
    29 October 2020 @ 23:15
    How did Ash connect with Angel Richard in heaven?
  • AG
    Amol G.
    28 October 2020 @ 18:51
    Is there research that is available from Richard so we can read it regarding Crypto valuations?
  • RC
    Rafael C.
    28 October 2020 @ 18:46
    Quite interesting. Would be great if you could share the deck mentioned in the interview.
  • AM
    Alexander M.
    27 October 2020 @ 22:53
    Another clarion call to the doubters. And just as I form a question in my head Ash delivers it at the perfect moment. Top quality from both men.
    • AB
      Ash B. | Real Vision
      28 October 2020 @ 05:18
      Thanks, Alexander. Much appreciated.
  • MS
    Mark S.
    28 October 2020 @ 02:35
    Excellent topic and well informed guest. Good questioning. Ash should consider talking about what cryptos he values. He said he owned a small amount of BTC through a company or fund. But he's on the main team for crypto on RV. So what does he think has good value?
  • JH
    Jesse H.
    27 October 2020 @ 17:05
    Just fantastic - I am so impressed by this gentleman, and the work of others in this space as well. Crypto is indeed the proverbial diamond in the ruff, of which the lion’s share of investors are completely unaware. Very grateful to all you guys at RV for putting this on our radar! :-)
    • AB
      Ash B. | Real Vision
      27 October 2020 @ 18:19
      I was very impressed with his analysis as well...
    • JH
      Jesse H.
      27 October 2020 @ 20:17
      I hear you, Ash. Many thanks for bringing him on and great job, sir. As a former engineer myself, I find this whole space absolutely fascinating...and am starting to see all kinds of exciting, and even humanising ways that crypto, DeFi and smart contracts can completely reimagine how we do business. Huge growth potential, and time-saving potential as well.
  • SH
    Simeon H.
    27 October 2020 @ 19:50
    "the nointees" (90s) 😅
  • SH
    Simeon H.
    27 October 2020 @ 19:49
    Really gotta work on that cut off intro song.