Here’s my guide to why $BADGER is worth $250 per token in the short/mid term.
First and foremost, this is $BADGER DAO, not DIGG DAO, not SAT DAO - $BADGER DAO.
Spadaboom in his announcement states that $BADGER stakers will receive fees from all setts. This not only makes the $BADGER token as a governance token, but also a value token in the sense that anyone who stakes $BADGER will receive fees from all SETT products. This can and should continue with any future product releases. This is crucial in the success of the token as people are incentivized to hold $BADGER. $BADGER has a total supply of 21M, but price action is not based on total supply or fully diluted market cap, but rather circulating supply and current market cap. This will be even more true once $BADGER is released in major exchanges such as Huboi, Binance, and Coinbase with USDT/USDC/(other stable coin) pairs. People who will buy $BADGER at that point will look at the current market cap and circulating supply and not the total supply and fully diluted market cap.
40% of $BADGER is in the treasury which is controlled by $BADGER stakers. 5% belongs to the founders and is on a 1 year vesting schedule. 15% is set aside for the developer fund stimulating creativity and innovation in the $BADGER ecosystem. Assuming that all $BADGER tokens besides those 45% (treasure and founder part) are circulating (which will take a couple months to fully be released into circulation), that will be a total of 11.55 million tokens.
Now, how do I get to my $250+ per $BADGER price in the short/mid term? Here it is.
250 (price per $BADGER) x 11,550,000 ( 55% total supply which is circulating) = 2.89 Billion Market Cap.
Now some of you will be saying, 2.89B are you crazy? $BADGER can’t do that, etc etc (being a negative nancy).
Well let me tell you. We’re not even in a bull run when it comes to alts yet. In my experience in crypto over 3 years. Even tokens with no value proposition and is purely based on marketing and hype reach over 10B market cap. Just look at the charts in 2017 for XVG(4B MC), ICX (4.7B MC), etc. Let’s look at some reputable (or at least what people thought were reputable) projects at that time: NEO (11.5B MC), MIOTA (14.8B MC), TRX (15.2B MC), etc etc.
YFI started at $863 on CMC and - so far - peaked at $39,900 in September. That is 46x from it’s starting point. Let’s say $BADGER went 46x as well from it’s starting point of $6.31 (6.31 x 46) = $290 per $BADGER token. YFI’s current market cap is 740M. Let’s say $BADGER only had a circulating supply of 6M when released on exchanges. Well then, we can safely assume (by going under YFI’s market cap) that it could reach 600M market cap. That’s 600M/6M = $100 per $BADGER token. Even with the 55% of total supply of 11.55M, we’d still be around $50 per $BADGER token. ** I’m using YFI as a comparable as it proposes a similar value proposition**
We’re in a much more mature phase of cyrptocurrency and defi is the new hot topic. $BADGER has first mover advantage and is innovating with $DIGG, building a solid SETT vault system, and is working on other future products such as lending/borrowing and such. The future is bright for $BADGER holders and stakers. $250 per $BADGER is only $2.89 Billion Market cap.
Proceeds from future $BADGER DAO products could and should be used to initiate buy back programs for the $BADGER token. We should not burn any $BADGER tokens.
We shall continue being a cohesive, contributing, unified community upholding the $BADGER vision and #HODL onto our tokens. Remember that staking the $BADGER tokens longer will increase your multiplier which = higher $BADGER and $DIGG rewards in the future. Know its value. Know what you’re investing in. This is a solid project with a solid team, great community, and an amazing “WHY” behind the organization. I hope this helps some people who are down in the past couple of days.
UPDATE 1/10/21: It seems that a lot of BADGER tokens are being staked (currently 2.5M; ~12% total supply) so that circulating supply is going to be even lower - driving $BADGER token prices even higher
- Not Sure
- I need more education on this topic