Estimating How Much HNT Is Really Worth Using A New 9-Step Valuation Approach

Cryptocurrency news and insights publisher Helium Axxent is tired of looking at candlesticks and Fibonacci ratios. There's got to be a better way to pick winning cryptoassets.

According to Helium Axxent analyst Rickey Williams, "I’ve never been completely comfortable with using Technical Analysis for crypto. It feels too much like guesstimating which way the bag that holds the asset is going to move. I just don’t want to be left holding the bag if the asset inside turns out to be worthless."

Many crypto traders live or die by Technical Analysis (TA), but it's not the only way to predict cryptocurrency price movements.

Helium Axxent's 9-Step Crypto Fundamental Analysis Blueprint was formulated to provide an organized approach to understanding intrinsic values of cryptoassets. To demonstrate how it's used, Helium Axxent has also published a case study that looks for verifiable value in the Helium Token, using the 9-step blueprint.

Interested parties can download the analysis blueprint article and case study on the company website: https://heliumaxxent.com/helium-fa-case-study/

There are two reasons most crypto traders do not spend much time with fundamental analysis:

- First, it tends to be inaccurate in the short-term.

- Second, this approach was designed for analysis of companies with income statements, balance sheets and P/E ratios, none of which apply to cryptoassets.

Intrinsic values of cryptocurrencies can be evaluated without financial statements, but with the exception of the Network-Value-to-Transactions (NVT) Ratio, such evaluations mostly depend on more subjective criteria.

Factors that add or subtract value to cryptoassets are described in Helium Axxent's Analysis Blueprint article. They include any value added by the use of blockchain technology, the experience and capabilities of the development team, the use-cases of a crypto project, stakeholder adoption, differentiation or cost leadership within the project's competitive environment and tokenomics.

A fundamental analysis of a cryptocurrency may or may not discover intrinsic value. Consider Shiba Inu or Dogecoin. Their intrinsic values are limited at best, yet speculators have made millions from these coins. That doesn't mean fundamental analysis doesn't apply. Investors, armed with a researched estimate of value can still decide to speculate on a crypto, but at least their eyes are open and they know they're speculating and not value investing.

Or consider Tesla's recent $1.5 billion purchase of BTC. Kimbal Musk regretted that decision after the public outcry over Tesla's assumed environmental hypocrisy. Even a cursory Fundamental Analysis performed before the purchase could have prevented that mistake.

A high intrinsic value of a cryptocurrency is not always reflected in current market value. Market value may be more affected by investor sentiment, especially short term, but market sentiment is more likely to change over time in favor of cryptoassets that demonstrate valuable use-cases.

To demonstrate the viability of Helium Axxent's 9-Step Fundamental Analysis Blueprint, a case study was performed, using the Helium native token as the crypto example.

This case study will be of great interest to Helium Hotspot hosts, Validators, investors and other community members, but the methodology should also interest investors and traders of other crypto projects.

The documented results of the Helium Token case study highlight the Analysis Blueprint's usefulness in evaluating intrinsic value, and promises great potential for analyzing other cryptoassets.

Crypto investors and Helium fans who want more information about the Crypto Fundamental Analysis 9-Step Blueprint can read the case study online or download the full document at: https://heliumaxxent.com/helium-fa-case-study/

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Created on Mar 16th 2022 23:12. Viewed 199 times.

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