I rarely look at our marketcap. I’ve never sold a penny of $EBSC and have no intention of doing so for quite some time. I find the whole concept of worrying about valuations distracting, and to be honest, unhelpful. Just focus on steps to build a better product, and bringing more value to the space, and the results will come.
Occasionally though, I’m inclined to check our marketcap for budgeting, which we do every couple of months or so. This time around, I couldn’t help but ask myself, are we fairly valued? If not, what would a fair valuation be? What are the main steps to be taken to get to that valuation?
In this article, I’ll put down my thoughts on all these questions.
By its nature, early-crypto is speculative. This means valuations are rarely based on ‘value investing’ the idea of taking a business’s underlying fundamentals, and from that extrapolating a reasonable valuation. This makes putting a number on a fair valuation pretty tricky.
The one benefit is Lithium is definitely not an investment of a purely speculative nature, unlike tokens that only act as a store of value (bitcoin, dogecoin, fair moon and more) Lithium offers real value it’s holders. From launchpad access, to fund discounts, to airdrops. So if we can assume that a fair valuation can be arrived at, where do we look?
The answer lies in competitors operating in the same space.
There are many launchpads/incubators out there, I think Lithium are special for a number of reasons, and can’t really just be treated as a ‘launchpad’, our Funds and other services make for a more compelling value prop, but for the sake of this article, let’s assume we aren’t, let’s assume we can simply value ourselves in the same ballpark as other launchpads.
Here’s a breakdown of some other launchpads out there, and their valuations. Please note I always take fully diluted marketcap, to me it’s. insanity to take any other metric for a companies valuation. The number in the brackets is the number of IDO’s completed, to be the nearest proxy to deliverable value demonstrated.
Seedify.fund — $409m (3)
BSCPad — $103m (fucking loads)
Lightning Protocol — $10m (1)
Impossible Finance — $98m (1)
Occam.Fi — $998m (4)
Lithium — $5m (0)
Ok, so clearly Lithium is between 1 to 2 orders of magnitude out from a valuation that falls within that of the competition, but what is driving this delta?
Speculation, of course, plays a role, but I also think there are a few key elements that, should Lithium execute on, will bridge the gap. I’ll now list these elements in priority order.
Our Lack of IDO’s
This is the critical element and the one we are working day and night to deliver. The main measurement of success for a launchpad is the success of its IDO’s. We have two very exciting projects launching through the Lithium launchpad over the next few weeks, and many more in the pipeline.
As we start delivering, you would expect investor confidence in our technical and operational competence will increase. We will also bring on the virtuous cycle that launchpads exhibit, which I wrote more about here.
Rest assured, we have no bigger priority than getting an exceptional launchpad up and running, with an exciting stream of innovative deals, quality content, and of course, airdrops.
The CMC Question
When we rebranded, we didn’t realise changing our name on BSCScan would be such a big issue. It turns out it is. The name on BSCScan can only be pulled from a specific place on the smart contract, which can’t be changed.
The reality is, CMC can help with growth. It’s where the majority of investors go to check the status of a project, see its audits, and assess whether they want to invest.
We are currently in the process of creating a new token, which will solve this issue, along with a few other modifications we want to make (such as a sensible price). We are working with Adoriasoft to see if we can work on this token in parallel to the launchpad, by bringing on a splinter team to make this happen.
I’m confident that a CMC listing, and properly named token, will help bridge the delta, as well as unlock the third element on the list.
We’ve done very little paid marketing so far. The main reason is our thoughts are that until the CMC problem is fixed, it’s pointless driving people to a token page that is confusing, to see an ad for Lithium, to then be driven to buy EarlyBSC just doesn’t make sense.
We have already lined up a best-in-class blockchain marketing agency, who’ve helped some of the biggest coins in the industry grow their following, they are good to go as soon as the new token is released.
I should mention we also have a number of organic lead generation initiatives in the pipeline, that we should be able to announce next week, watch this space…
A Rock-Solid Marketing Advisor
One thing we are missing on our team is an influential person in the crypto space, to form a long-term partnership with the Lithium ecosystem. We think that if we deliver on the above points, this kind of partnership could come organically, but we aren’t waiting around. Every day we are hustling on Twitter, trying to get noticed by the right people, adding value where we can, getting the right person on who can bring continued, long-term exposure is a big deal for us.