Great article! I like the format for analysing a project. Looking forward to seeing what else is in store.
Launching at a 230 mil fdv is high for a company without a product, but considering that the raise was to fund the treasury it would make sense that they would want as much money to underwrite loans as possible. It wouldn't surprise me if the team knew the launch was going to go the way it did. The larger the treasury the better the JPEGd protocol can run.
Personally, I think the combination of futures exchange and NFT loans makes this a huge product. The team behind it will all but guarantee its monopoly since they also own a large amount of the NFTs that will be used as collateral.
Hi thanks! Totally agreed, I think they have more than enough resources now to have atleast the biggest share of the pie in terms of NFT x Defi marketshare. One of their challenges will be gaining the trust to put your precious punk as collateral on a new smartcontract, let's see how that will turn out in terms of TVL.
I don't think that will be much of a problem. The contract is audited and the founders will be depositing more than enough punks to gain trust. Plus I can't imagine there's a lot of incentive to steal an NFT. It's like stealing art, there's not really a market for selling it.
My biggest concern is the valuation. AAVE is valued at 2.2bn with 12.tbn TVL. This means the project is sitting at 10% of AAVE's valuation with no tangible product. I'm not sure how to place the risk reward for this but it's currently sitting on a very high valuation for a project with no tangible product. The entire product is depending on the price oracle which we currently know nothing about (besides being a chainlink oracle).
Great article! I like the format for analysing a project. Looking forward to seeing what else is in store.
Launching at a 230 mil fdv is high for a company without a product, but considering that the raise was to fund the treasury it would make sense that they would want as much money to underwrite loans as possible. It wouldn't surprise me if the team knew the launch was going to go the way it did. The larger the treasury the better the JPEGd protocol can run.
Personally, I think the combination of futures exchange and NFT loans makes this a huge product. The team behind it will all but guarantee its monopoly since they also own a large amount of the NFTs that will be used as collateral.
Hi thanks! Totally agreed, I think they have more than enough resources now to have atleast the biggest share of the pie in terms of NFT x Defi marketshare. One of their challenges will be gaining the trust to put your precious punk as collateral on a new smartcontract, let's see how that will turn out in terms of TVL.
I don't think that will be much of a problem. The contract is audited and the founders will be depositing more than enough punks to gain trust. Plus I can't imagine there's a lot of incentive to steal an NFT. It's like stealing art, there's not really a market for selling it.
My biggest concern is the valuation. AAVE is valued at 2.2bn with 12.tbn TVL. This means the project is sitting at 10% of AAVE's valuation with no tangible product. I'm not sure how to place the risk reward for this but it's currently sitting on a very high valuation for a project with no tangible product. The entire product is depending on the price oracle which we currently know nothing about (besides being a chainlink oracle).