Realtime Statistics, Prices and Marketcap
Monetary Model is useful for valuing Cryptocurrencies because it attempts to measure the value provisioned to users of a Cryptocurrency network, then relates that value to token supply and velocity to derive the value of an individual token.
In instant case, we have considered the size of the market (Total Remittance Industry Size) as $ $613B for 2018 & consider 5% CAGR.
For the Year 2018, potential percent penetration (market share) for REMCO and parent has been considered 0.32% i.e transaction value of $ $1,961b. (In the Year 2016 and 2017 Remco parent processed transaction value of $695 Mn). The velocity ( velocity-the average frequency with which a unit of money is spent) for the year 2018 is considered to be 1.1.
After adjusting the transaction value with velocity, we arrived at the value of coin $1,783.27b. We divided the fair value of the coin with the outstanding token 2,000,000,000, & we obtained a value per coin of $ 0.89 for the Year 2018.
|Valuation Year Wise
|Market Size (Mn)-5% CAGR
|Potential percent penetration
|Value of Coin (Mn)
|Coins outstanding (Mn)
|Value Per Coin
Value Per Coin
The Network Value to Transactions (NVT) Ratio is viewed similarly to the stock market PE ratio, which can be used as a proxy to gauge over or undervaluation of digital assets like Bitcoin. The NVT is calculated as Market Cap (Network Value) divided by the transaction volume $. In Instant case, we have taken the average of 90 days NVT ratio of 15 token companies. We have made a specific adjustment on Industry multiple of NVT ratio by giving appropriate small company discount & New Company discount of 40% to Industry average NVT Ratio of 15 Token peer Companies After applying the discount we calculated Industry Adjusted NVT Ratio of 23.28x. After obtaining the industry Adjusted NVT Ratio of 23.28x, we multiplied the same with REMCO parent 2016 & 2017 Transaction Value of $695 Mn to arrive at a Fair REMCO token value. Thus we calculated the Value of Token $16,180.43 b, after dividing the same with the outstanding coin of 2,000,000,000 b. We obtained the fair value of $8.09 per Token.
|Remco Transactions Value Mn-2017
|Industry Discounted NRV Mutliple
|Value of Coin
|Coins outstanding (Mn)
|Value Per Coin
Note- NVT is a proxy for fundamental utility value of the network, a 90-day Moving Average is a better proxy for long-term fundamental value than a 28-day Moving Average, hence for valuation of REMCO we have considered 90d NVT Ratio.
- The model works for quarterly, for 36 quarters (9 years seems like a reasonable length of time for a platform to scale to the point of capturing the vast majority of the opportunity.)
- Beyond 360 quarter- we have considered the terminal value
- Model captures (QonQ) growth in transaction
- Cash Flow comes through fees of token holders
- To arrive fair value- we have discounted the fees to token holders based on a Discount Rate
- Logistics function (S-curve distribution) has been used to define the no. Of user growth
Valuation of Remco
- Token Supply (Outstanding Token as on date) - 2000000000
- Distributions to all token holders start at $4,06,854 for Q3 2018 as per our S-curve distribution Model. The distributions grow modestly at first. There is a steep growth in distributions several quarters leading up to the inflection point in the S-curve which occurs in Quarter 18 of the model (Q4 2022). By Quarter 28 (Q2 2025) 99% is achieved. At the end of the 36 Quarter Terminal Value of distributions to token holders into the distant future can be modeled as a perpetuity.
- These cash flows to token holders including the Terminal Value are discounted back to the present using a Discount Rate. A quarterly Discount Rate of 10% is used.
- The Present Value (“PV”) of the distributions (including Terminal Value) is calculated as $3950 Mn. Based on a total token supply of 2000000000 Tokens, each token has a justified value of $1.97 (which is the PV divided by the token supply) at the point of the project start.
|Cash Flow Model
|Discount Rate- Quarterly
|PV of CF + Terminal Value
|Price per Token
For Calculating the Fair value of REMCO, We have given equal weights to all three Globally accepted Methods. Although here the point has to be noted that Cash Flow Model & NVT Ratio is most suited for newly launched Tokens.
|Methods Value Weights
|Fair Value of Token
REMCO sends cash across borders faster and cheaper than ever before - for people and businesses - while also offering innovative compensation to all transaction stakeholders.
Powered by proven technology REMCO's secured platforms provide access to billions globally.
A pilot test in Illinois and Georgia in 2018, conducted by parent company VTNGLOBAL, demonstrated the cash-in process to be ten times faster than previous storefront agent processes. These pilots also proved the popularity of the main feature, sending to multiple recipients affordably.
Although VTNGLOBAL will be REMCO's first customer, the REMCO Token Generating Platform's APIs to allow any licensed money transmitter to mint programmable Tokens to move value and leverage distributed ledger advantages at speed and scale,
This is a trillion dollar opportunity. The World Bank estimates global remittances at $642 billion in 2018, and there are informal money flows.
- REMCO is seeking investment of $6Million to expand its network, complete its technology platform and obtain state licenses.
- The detailed Resource Allocation for REMCO Project is as follows:
- Private Sale (50%)
- Period – 15th Sept. – 15th Oct
- Regular Staffing
- Growth- Task Feeding, marketing and user base
- Business Health, infrastructure and strategic investments
- Pre Sale (35%)
- Vested Project growth
- Core Development and advisory Budget
- Strategic Partners
- Public Sale (15%)
- Volume in the last 24 months $695M
- USA and Nigeria Licenses
- Existing partners: Western Union, IDT/BOss/ Transfer to and more.
- 3.6 M subscribers
- 4,700 Registered Agents
- 5,900 registered merchants
REMCO Coin Valuation & Growth Rate
- Total outstanding Token - 2000000000
- Key Assumptions
- Monetary Model- the size of the market (total Remittance Industry Size) as $ 6,13,000 Mn for 2018 & 5% CAGR.
- NVT Ratio - the average of 90 days and NVT ratio of 15 token companies has taken.
- DCF Method –
- Time Frame – 36 Quarters
- Quarterly Discount Rate is 10%
- Highest value of coin as per NVT i.e. $8.97
- Under Monetary Method, the coin value has increased significantly by almost 500% in 5 years.
- The Fair value of coin after averaging all the values derived from these method is $3.65.