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Valuing an ICONOMI Token

ICONOMI has raised over $5 million and wraps up its ICO on Sept 29th, 2016. S+C kicked the tires of the economics behind the ICONOMI token.

ICONOMI will wrap up its ICO next week on September 29th. At time of writing, they’ve raised over $5 million across five currencies. Smith+Crown wrote an overview of the ICO in its ICO section. Here we share some of our internal thinking about this ICO, a back-of-the-envelop calculation that might pass as a poor man’s valuation.

The ICONOMI token provides its holder with a stream of revenues based off the management fees associated with the funds on the ICONOMI platform. In the short-term, these will be a passive ETF-life fund (INDEX) and an actively managed fund (PERFORMANCE). In the long term, they will launch a marketplace in which anyone can offer financial instruments; a portion of fees associated with those will also go to tokenholders. Finally, if the team hits certain performance targets (beats some baseline), they will earn more fees, a portion of which will go to shareholders. The whitepaper does not publish enough information to do an accurate model, but this gives a sense of how the system works and what value the token might have as a financial investment.

Here is the sheet below with our assumptions.

Have suggestions for the assumption? Let us know!