THE FINAL COUNTDOWN BUY LIST: TWO TINY CRYPTOS TO OWN NOW - By Teeka Tiwari
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
THE FINAL COUNTDOWN BUY LIST:
TWO TINY CRYPTOS TO OWN NOW
By Teeka Tiwari
THE FINAL COUNTDOWN BUY LIST:
TWO TINY CRYPTOS TO OWN NOW
By Teeka Tiwari
In my three decades as a Wall how to make money from it? It’s telling
Street executive and hedge you to buy bitcoin.
fund manager, I’ve learned
many lessons. • Morgan Stanley said the “true price” of
bitcoin was zero. Now? It became the first
One of the most important is major bank to offer it directly to wealthy
to have the courage to stand clients.
by your convictions…
• Then there’s Citigroup. It said bitcoin was
If you really want to be a successful investor, you a “complete failure.” Now it’s predicting
can’t care what other people think. You must rely bitcoin could reach $318,000 this year.
on your own judgment. And I’ve done that again,
and again, and again. The reason I was so confident in my predictions
was because I understood how bitcoin worked…
As far back as 2016, I told anyone who was especially its special “countdown events,” or
willing to listen that bitcoin would soar well past halvings.
a $1 trillion market cap. It’s now around $1.14
trillion. If you’ve ever heard me talk about “halvings,” you
know how lucrative these rare occurrences can be…
I said we’d see $40,000 bitcoin… and then
$60,000 bitcoin sooner than most people Let me explain it without getting too much into
realized. It’s since soared above $66,000. the weeds. You see, there can never be more than
21 million bitcoins in existence. Their issuance is
I said the institutions would try to scare retail strictly regulated by computer code.
investors out of the crypto market as they flooded
in. While individual investors were selling Every 10 minutes, bitcoin “miners” compete to
bitcoin at the bottom, they were scooping it up solve a complex mathematical problem using
at fire-sale prices. I called it the “Great Crypto computing power. In the first half of 2020,
Conspiracy.” whoever solved the problem first was awarded
12.5 bitcoins.
And again, that’s exactly what happened. The
same institutions that once jawboned bitcoin A halving event is when the bitcoin reward
lower are now on the bitcoin bandwagon. gets cut in half. So each halving reduces supply
coming to the market every four years. The first
• JPMorgan once said you’d be “stupid” to halving occurred in 2012, and the second in 2016.
buy bitcoin. But now that it’s figured out The third occurred on May 11, 2020.
1
www.palmbeachgroup.comWhen that halving event occurred, the bitcoin That’s a 1,497% return, enough to turn every
reward dropped from 12.5 to 6.25 bitcoins. Over $500 into $7,900. And again, if you had waited
a year, that dropped the supply of bitcoin coming to get in until AFTER the supply cut, you would
to the market. have only made 550%...
Why is that important? Still, nothing to sneeze at…
Bitcoin is the gateway to crypto; think of it like But it illustrates just how important it is to get in
the reserve currency of the crypto world. So if before these “countdown events” occur.
demand stays the same but supply gets cut in
half, what happens to the price? Here’s the thing: When these supply shocks
happen, it’s not just bitcoin that soars.
It goes up.
We’ve also seen multiple altcoins (cryptos other
And when demand skyrockets, it goes up a lot. than bitcoin) soar along with it.
We’ve seen this multiple times with bitcoin’s past When the 2016 halving occurred, we saw some
halvings. If you go back to just before the 2016 of the smaller cryptos soar as much as 8,600%,
halving, bitcoin was trading for $222… Leading 11,600%, and even 50,000%. Just a $500 stake
up to the supply cut, it soared 203%... in each of these would have turned into $43,710,
$58,990, and $252,470, respectively.
But after the supply cut hit, over the next year,
Bitcoin continued to soar all the way up to It happened again in 2020. After the bitcoin
$19,497... halving, certain smaller cryptos soared 561%,
4,289%, and 15,757%.
If you had invested in bitcoin before the halving,
at that point you’d be sitting on an 8,645% Now, the bad news is, bitcoin’s next halving isn’t
return. That turns every $500 into $43,725. until 2024. But the good news is, there’s another
crypto with its own special “countdown event”
Now, if you had waited until after the Bitcoin happening soon.
“countdown date,” you would have only made
2,862%... And if you position yourself beforehand, the gains
could potentially be even higher…
Your $500 investment is now worth only
$14,813… The Final Countdown
Still an amazing return. But you’d have made As you know, the crypto I’m talking about is
almost 3x more by getting in before. Ethereum (ETH).
The same story played out with bitcoin’s most Over the next decade, I believe Ethereum will
recent halving in 2020. Before the supply cut count itself among the world’s most valuable
on May 11, bitcoin traded for around $3,900… financial assets… partly because of its “Final
Leading up to the supply cut, it soared 117%... Countdown.” (More on this below.)
But after the supply cut hits, over the next Let me make that more concrete: Ethereum will
year bitcoin continues to soar all the way up to likely be more valuable than shares in Facebook,
$63,300... Amazon, Apple, Google (Alphabet), and Microsoft.
2
www.palmbeachgroup.comThat’s why in April 2021, I predicted ETH would • Asset manager VanEck filed to create
be the next crypto to reach a $1 trillion market cap. the first Ether-focused ETF in the U.S.
Meanwhile, four ETH-focused ETFs are
As I said at the time, the next stage of live in Canada.
transformational software development will
happen on the blockchain… not the traditional • A recent JPMorgan report concluded
internet. And Ethereum is the world’s most that the Ethereum upgrade could spur
widely used blockchain development platform. the adoption of “staking”… and cause
staking rewards to balloon to $20 billion
Just like Microsoft was the world’s most popular in the near term and $40 billion by 2025.
PC development platform in the 1990s… And (Staking is one method of earning income
Google’s Android and Apple’s iOS are the most on certain cryptos.)
popular mobile app development platforms
today… Ethereum is – and will continue to be – This increased demand is showing up in
the go-to platform for blockchain projects. Ethereum’s native token, ether. The number
of daily transactions on the network recently
Over the longer term, I think we could see ETH reached a record high of 1.7 million.
reach $25,000 per token. But that might be
several years away. So while I don’t expect that And as more users compete to use the network,
anytime soon, I believe we will see Ethereum fees spent on these transactions also reached a
reach a $1 trillion market cap soon. record high of $70 million per day.
Why? For one thing, demand for ETH is Here’s the thing…
skyrocketing.
All this demand is coming at a time when we’re
Ethereum hosts over 2,500 applications – the about to see a major reduction in the incoming
most of any blockchain. And roughly 2,300 active supply of Ethereum, thanks to what I’m calling
developers are currently working on the Ethereum the “Final Countdown.”
network. The closest competitor has just 400.
And when demand increases while supply
The abundance of developers and apps on decreases, prices have nowhere to go but up…
Ethereum has created a network effect that
attracts even more projects to Ethereum. You see, the Final Countdown has to do with
Ethereum transitioning from a Proof-of-Work
Any blockchain app built on the Ethereum (POW) protocol to a Proof-of-Stake (PoS)
network can plug into Ethereum’s liquidity… protocol. (The official name of this event is the
lending and borrowing… insurance… and much EIP-3675 upgrade.)
more. Ethereum acts as a vacuum cleaner sucking
up more and more projects into its ecosystem. I don’t want to get into the weeds, but here’s a
brief explanation…
And we’re seeing demand skyrocket:
In the PoW model, miners use powerful
• ETH loans at crypto lending firm Genesis computers to secure the network. They solve
increased 400% from $465 million in complex math problems to validate transactions
Q4 2020 to $2.4 billion in Q1. ETH now on a block. The first miner who solves the problem
makes up 27% of the lender’s loan book, earns the block reward. As I went over at the start
up from just 15.5% of the loan book in Q4. of this report, bitcoin is an example of this model.
3
www.palmbeachgroup.comMeanwhile, PoS miners validate transactions by And after the Final Countdown, Ethereum will
staking tokens on a block. The network chooses become a deflationary currency. So there will be
the miner who earns the reward based on the fewer tokens in circulation – making each more
number of coins they own and other factors. valuable.
Since PoS networks don’t rely on warehouses full To get a sense of how much demand there is to
of mining equipment, they are less expensive to use Ethereum, look no further than revenue it
run. So these networks can issue far fewer tokens generates from transaction fees.
to reward miners for securing the network.
Since the start of 2021, Ethereum generated
Ethereum is in the process of switching to a nearly $469 million in revenue from transaction
PoS model. And when it finally completes this fees each month. That’s nearly $5.63 billion per
transition and “merges” its PoW network with its year annualized.
PoS model, we’ll see as much as a 97% reduction
in the amount of new ETH coming to market. And if we compare this to 2020, when Ethereum
generated roughly $600 million, you can see the
When you combine all these factors… that demand to use Ethereum has surged over the past
makes Ethereum a must-own crypto. For more year, as its usability increases... a 838% growth in
information on the Final Countdown and when it transaction revenue, to be exact.
will go live, see the box on the following page.
Now, let’s assume in 2022, Ethereum grows at
Now, I predict Ethereum will become the next just one tenth of the rate it has so far in 2021.
$1 trillion network. As I mentioned above, that’s That would imply nearly $862 million in monthly
because the next stage of software development transaction fees, or $10.3 billion annually. To get
will happen on the blockchain. And Ethereum a sense of what $10.3 billion in transaction fee
is the world’s most widely used blockchain revenue means for Ethereum, we can compare it
development platform… to the likes of global payment processing giants
Visa and Mastercard.
Just like Microsoft was the world’s most popular
development platform for computers in the Today, these two companies trade at an earnings
1990s… And Google’s Android and Apple’s iOS multiple of 49. If we apply the same earnings
are the most popular development platforms for multiple to Ethereum, it would be valued at
today’s mobile apps. roughly $507 billion.
All three companies are worth more than $1 But since Ethereum is on the cutting-edge
trillion today… that’s not a coincidence. of technology with higher growth potential,
we believe Ethereum will fetch a premium at
But with traditional internet and mobile app least three times greater than legacy payment
technology reaching a saturation point, it’s almost companies like Visa and Mastercard.
inevitable that the next boom in application
development will take place on the blockchain… That would translate to a market cap of $1.52
trillion for Ethereum, or $12,888 per token.
The network that will dominate that future
is Ethereum. It’s on a pathway to become the But as you know, the transition to PoS will see
fastest asset in human history to hit a $1 trillion a “super halving” – making ETH a deflationary
valuation… even faster than bitcoin. asset.
4
www.palmbeachgroup.comThis is because more tokens will be burned from You see, roughly 8,000 ETH are burned each day
transaction fees than tokens being emitted into from transaction fees today while roughly 12,800
circulation. ETH are issued to compensate miners.
Ethereum: Approaching the “Final Countdown”
The Ethereum Final Countdown, also referred to as the “Merge” or “Ethereum 2.0,” will be one of
the most critical and important events in crypto history.
It’s a major Ethereum network upgrade that will increase transaction speeds by as much as 3,000
times.
But the biggest and most important element of the upgrade is that it will reduce the new
Ethereum supply by as much as 97%.
And when demand is high, and supply goes down… prices have nowhere to go but up.
The upgrade is expected to rollout in distinct phases. Here are the key dates to be aware of:
December 1, 2020: The Beacon Chain
The Beacon Chain introduced staking to the Ethereum network, allowing some users to lock up
their ETH tokens to help secure the network and earn rewards for doing so. At time of writing,
there’s over $22 billion worth of ETH tokens staked. Eventually, Ethereum’s existing network
today will “merge” with the Beacon Chain.
August 5, 2021: The London Hard Fork
The London Hard Fork made some adjustments to Ethereum “gas fees,” or the transaction fees
for using the network, which are paid in ETH tokens. The key change is that now part of every gas
fee will be burned (removed from circulation), reducing the supply of ETH tokens.
August 1, 2022: The Merge
The Merge is when the Ethereum network will officially complete the 2.0 upgrade and switch to
proof-of-stake. This will allow all users to stake their ETH and earn interest. Plus, it will lead to
the network issuing fewer ETH tokens into the market. With the Merge tentatively scheduled for
August 2022, this is the earliest possible date it could happen. Making sure you’re positioned by
August 1 ensures you’re prepared to benefit once the upgrade completes.
August 2022: Ethereum Difficulty Bomb
Ethereum’s difficulty bomb will further cut the supply of new ETH coming to market. While
originally scheduled for December 2021, the deadline was extended to August 2022. That’s great
news, as it gives us more time to get positioned to capitalize on the further reduction in supply.
5
www.palmbeachgroup.comBut once ETH 2.0 goes live, only about 2,700 huge gains for early investors by plugging into the
ETH will be issued each day to compensate Ethereum ecosystem.
validators (stakers).
As I showed you above, bitcoin’s supply
That means roughly 5,300 ETH will be burned shocks helped propel it to become the first
each day assuming all else remains constant. cryptocurrency to $1 trillion. And that triggered a
rise in multiple altcoins.
That means we would see roughly 1.9 million
ETH burned each year following Ethereum’s During bitcoin’s rise, we saw certain coins rise
switch to PoS. That’s an 8.2% reduction in total 8,600%, 11,600%, and even 50,000%.
supply by the end of its fifth year.
I believe Ethereum will have even longer
That alone would boost each token’s price to coattails. And it’ll slingshot certain coins to
$14,038 without moving the needle on its overall amazing heights... just like bitcoin did.
market cap.
So I want you to take a long-term view of these
That makes it about a 255% gain from current projects...
prices.
The other two coins I’ve identified in this special
And that’s a conservative estimate, as the Final report are tied to the Ethereum network.
Countdown could cut Ethereum’s new supply
even further, by as much as 97%. Under a blue- By hitching their carts to Ethereum, I think they’ll
sky scenario, we could even see Ethereum reach deliver gains of as much as 800% or even 19,600%.
$25,000 in the coming years. That’s a 532% gain.
These are the perfect kinds of asymmetric bets
Friends, you still have a chance to get in on we look for... Where you can take a small starting
the ground floor of what will become the most stake and make incredible returns... All on our
valuable financial asset in the world. Seize this journey to make life-changing gains without
opportunity now. taking life-changing risks.
Action to Take: Buy ether (ETH). That’s why it’s so important you use rational
Buy-up-to Price: See the portfolio page here. position sizing: $200–400 per idea if you’re a
Stop Loss: None smaller investor, or $500–1,000 if you’re a bigger
Buy it on: Coinbase, Coinbase Pro, Binance, investor. Don’t risk more than you’re willing to
Binance.US, Gemini, or Kraken lose outright.
Position Size: $200–400 for smaller traders or
$500–1,000 for larger traders IMPORTANT NOTE: Immediately after
our buy recommendations, we often see an
But as much money as you can make with initial price spike. We understand this can
Ethereum, I think you can make an order of be frustrating. But don’t worry. This is par
magnitude more by buying two coins built on top for the course in the cryptocurrency space.
of the Ethereum ecosystem. Most of the time, the recommendation falls
back below our buy-up-to price. Use a limit
Just like the companies that plugged into the order. And just be patient and let the price
internet went on to be worth billions and trillions, come to you.
I believe these disruptive projects will deliver
6
www.palmbeachgroup.comNow, let’s get to them… high fees and the risk of letting Coinbase custody
your assets.
Final Countdown Crypto No. 1:
That’s where DeFi comes in. Under DeFi,
Compound (COMP)
platforms like exchanges are decentralized. They
As you know, Coinbase – the largest crypto allow users to trade cryptos at a fraction of the
exchange in the U.S. – went public recently. It cost... and maintain control over their assets.
ended its first trading day with an $86 billion
This new realm of finance serves its users better
market cap.
by removing the middleman from the equation.
That makes Coinbase larger than many household For example, when you purchase stocks from
names in the financial services industry, your broker, they earn a fee. But without having
including CME Group, Discovery Financial, and to go through a middleman like a broker, the
our portfolio holding Intercontinental Exchange seller keeps more profits for themselves and the
(ICE), the operator of the NYSE. buyer gets a more favorable rate.
I believe we will look back at Coinbase going And I believe 2021 is the year the DeFi trend goes
public as the “Netscape moment” for crypto. mainstream.
Back in the 1990s, Netscape developed a user- Over the past year, we’ve seen hundreds of DeFi
friendly web browser called “Netscape Navigator.” projects come to life that have built an entire
You didn’t need to know anything about computer ecosystem of financial products.
code to use it. And it allowed anyone with a
These new platforms are set to disrupt the
modem to surf the internet with ease.
financial industry we know today as they remove
After Netscape went public in August 1995, intermediaries and barriers to entry, which will
the internet exploded in popularity. By the also lower costs.
end of 1996, the number of internet users had
DeFi is set to improve areas like lending,
skyrocketed to 36 million – an increase of 125%.
borrowing, trading, insurance, asset
Five years later, the internet had a half-billion
management, and much more.
users.
And as crypto adoption becomes more
Just as Netscape’s IPO brought the internet to
mainstream, so too will DeFi as everyday users
everyday folks’ homes, so too will Coinbase’s
realize the advantages it has over traditional
public listing make crypto a household term.
finance.
But Coinbase is just the beginning. The best
I expect DeFi to evolve into a multitrillion-dollar
opportunities this year are in a different corner of
sector. And yet it’s still flying under the radar of
the crypto market…
most investors.
It’s called decentralized finance, or DeFi for short.
And Compound (COMP) can help us take
You see, Coinbase is a centralized exchange. advantage of this trend. It’s a decentralized
While it makes it easy to buy, sell, and store money market protocol on the Ethereum
cryptos, it has its pitfalls. The two largest are its network.
7
www.palmbeachgroup.comIt’s one of the largest decentralized lending holders stand to benefit from users looking to
protocols in the world. In September, it reached generate income or take out a loan with their
an all-time high of $13 billion in assets held on assets.
the platform. At time of writing, that number is
roughly $11.9 billion. On the security front, Compound will pay as
much as $150,000 to anyone who can discover a
Still, compared to crypto institutions like bug or vulnerability that would cause the loss of
Coinbase and traditional financial firms, assets or other harm to users. That incentivizes
Compound is small enough to deliver incredible so-called “white hat” hackers to do their best to
returns if the crypto market takes off again. find and identify potential problems before actual
harm can be done to anyone.
Compound allows users to borrow against their
assets and/or lend them to earn income. The It’s also backed by some of the largest players in
platform is completely permissionless, meaning both the crypto and traditional finance worlds,
anyone in the world regardless of their wealth or including Andreessen Horowitz, Coinbase, and
credit score can use it. Bain Capital.
Compound pools depositors’ assets together – Most importantly, Compound is integrated with a
which borrowers can draw from. This evenly handful of innovative applications and platforms.
distributes risk and rewards among depositors Some of these you might already know, like
looking to earn interest on idle assets. Binance. Others you might not…
An algorithm on Compound sets interest rates. For example, Donut allows anyone to link their
And it automatically adjusts them to reflect bank account and start earning interest – as
market demand. For instance, when borrowing much as 4–10% – through Compound in a matter
demand rises, rates increase to attract more of minutes. No, you don’t get FDIC insurance. But
lenders. And when borrowing demand drops, compared to a savings account at a traditional
rates decrease to attract more borrowers. bank like Wells Fargo (which only pays 0.01%
interest), Donut’s rate is around 400–1000 times
Unlike centralized institutions, Compound uses higher.
smart contracts to ensure optimal security and
allow users to retain control over their assets. Another app called PoolTogether also allows
A depositor can withdraw their assets from the users to lend money through Compound but
lending pool at any time of the day, 365 days a with a twist – all the interest that users earn
year. is collected and distributed through a random
rewards process.
And since Compound runs on the Ethereum
network, it doesn’t need to hire thousands of While there are still participation risks, the basic
employees or rent expensive downtown office idea is creating a lottery in which nobody actually
space. This allows it to operate at a fraction of the loses, because you still keep your principal and
price, passing on more profits to depositors and can withdraw it at any time.
more favorable rates to borrowers.
This is just the surface of what’s possible,
Owning Compound will position us to ride especially as more and more people wake up to
Ethereum and the DeFi trend higher. And as the possibilities of DeFi and developers come up
more assets flood the DeFi space, COMP token with more innovative ideas and concepts.
8
www.palmbeachgroup.comWhile Compound offers an excellent platform for value of a real-world asset, such as the U.S.
DeFi, we think the best way to play its rise is by dollar or gold. They’re designed to avoid wild
holding the COMP token. fluctuations in price.) If we assume a quarter of
that will be kept in reserves, then the other 0.3%
COMP tokens entitle their holders to fees and would be available to token holders. That 0.3%
governance rights over the Compound protocol. yearly fee on $175 billion would generate $525
million available to token holders.
Holders can participate in decisions such as
determining interest rates for each asset… The top five largest publicly traded banks have
the required amount of collateralization for historically traded at 14 times earnings. That
borrowing... and whether to add new coins to the means Compound could easily be worth $7.35
protocol. billion just by meeting the average... representing
an 82% jump from the token’s recent price when
Most importantly, Compound generates revenues
accounting for maximum token supply.
by taking a cut of the interest paid by borrowers
and placing it in a reserve fund. The reserve fund Of course, Compound could grow faster – and
acts as insurance for lenders to protect against scale more easily – than any traditional bank.
default. And investors tend to assign substantially higher
multiples in those situations. (Amazon and Tesla
However, when reserves reach sufficient levels,
are great examples.)
token holders can then vote on how to distribute
the rewards. And as you can imagine, they’ll Therefore, we think Compound could easily
likely vote to distribute the interest rewards to command a valuation that is five times higher
themselves. than the typical stodgy old bank.
As more assets flood the DeFi space, COMP token Couple that possibility with the maximum supply
holders stand to benefit from users looking to of COMP tokens allowed under the protocol, and
generate income or take out a loan with their we believe the fair value of each token could be
assets. So adding Compound to the portfolio today $3,675… an 809% increase from current prices.
will position us to ride Ethereum and the DeFi
trend higher, especially as the Final Countdown Action to Take: Buy Compound (COMP).
event drastically cuts the Ethereum supply. Buy-up-to Price: See the portfolio page here.
Stop Loss: None
Compound basically operates as a decentralized Buy It On: Coinbase, Gemini, Binance, or
bank. So we can value COMP tokens by relating Uniswap
them to shares in traditional publicly traded Store It On: MyEtherWallet or Ledger
banks. Position Size: $200–400 for smaller traders or
$500–1,000 for larger traders
Today, there’s over $17.5 trillion in deposits held
Asset Class: Cryptos (Altcoins)
in U.S. banks. If even 1% of that money moves
over to Compound, that would be about $175
Final Countdown Crypto No. 2: 0x (ZRX)
billion going into the protocol.
ox (ZRX) is another opportunity for us to
Meanwhile, Compound earns roughly 0.4%
capitalize on the DeFi trend.
on its dollar-denominated stablecoin loans. (A
stablecoin is a crypto that’s pegged 1:1 to the 0x is a decentralized exchange (DEX) aggregator.
9
www.palmbeachgroup.comLike a centralized exchange, a DEX provides a The protocol can be used to build or augment a
platform for different parties to make trades. wide range of marketplaces – digital goods ex-
But unlike centralized exchanges – including changes, games with in-game currencies, portfo-
Coinbase, the largest crypto exchange in the U.S. lio management platforms, and many others.
– there are no custodian middlemen in a DEX.
That eliminates the need for users to store their Since the start of this year, 0x has generated over
assets remotely and minimizes security risks like $61.2 billion in trading volume. That’s a 648%
hacks. increase from the roughly $8.2 billion in volume
it generated in all of 2020.
0x has an interface called Matcha. It finds the
best price for users looking to swap assets on If 0x can sustain that growth rate, it would end the
the Ethereum network by pulling liquidity from year with about $167 billion in trading volume.
multiple DEXs on the network.
To estimate 0x’s value, we’ll use its historical fee
This saves users from having to search through average, which is about 0.01% of trading volume.
several exchanges to find the best place to trade By comparison, Coinbase charges a 0.5% fee – or
an asset. Even if they were up to the task, by the 50x more than 0x.
time they found the best price and entered the
Based on its current fees, 0x would see about $17
trade... prices would’ve likely changed by then.
million in earnings ($167 billion x 0.01%).
This makes 0x the one-stop shop to exchange
And while this may seem small… We believe it’s
assets on a decentralized network, such as
only the start, as the DeFi trend is still in its early
Ethereum.
stages and hasn’t yet reached the masses.
0x also provides multiple sources of liquidity,
Let’s assume 0x’s current growth rate decreases
including professional market makers… free
by half over the next three years. That’s about
limit orders for peer-to-peer transactions… and
324% year-over-year growth in trading volume.
exclusive access to private pools of capital.
At that rate, it’d see about $12.8 trillion in trading
Plus, 0x has one crucial difference from other volume by the end of 2024.
DEXs: It doesn’t store orders on the blockchain,
Using a 0.01% trading fee, 0x would be earning
only trade settlements. This makes it faster and
roughly $1.28 billion per year.
less costly.
To get a sense of what that means for the ZRX
Obviously, none of this would matter if there
price, we can compare 0x to the largest publicly
were trading delays, outages, or security issues.
traded crypto exchange, Coinbase.
But 0x boasts 99.9% uptime and a faster response
time than its competitors. One study also showed Today, Coinbase trades at 25 times its earnings. If
0x producing better fee-adjusted prices than we apply that same multiple to 0x, its market cap
competitors 70% of the time. would grow to $31.9 billion ($1.28 billion x 25).
For all these reasons, market participants are As an early-stage project with cutting-edge
flocking to 0x. Active traders on the platform technology and huge growth potential… We
have grown from 8,563 to 102,290 over the past believe 0x could fetch a multiple at least three
year. That’s a 1,095% increase. times greater than Coinbase.
10
www.palmbeachgroup.comThat would make 0x worth $95.7 billion – or That would give 0x a $175.5 billion valuation.
$113.24 per token based on today’s circulating Or $207.62 per ZRX token based on the current
supply. circulating supply.
That’s a 10,271% increase from today’s price. That’s a 19,673% increase from today’s price.
Enough to turn a $500 investment into $51,857 Enough to turn a $500 investment into $98,866.
and every $1,000 investment into $103,714. And every $1,000 investment into $197,732.
But we believe it can go even higher as DeFi That makes ZRX a perfect asymmetric play – the
continues to gain mass adoption and the Final type of investment that could turn a tiny amount
Countdown reduces Ethereum’s supply. of money into a substantial windfall.
Let’s assume 0x sustains its current 648% growth Action to Take: Buy 0x (ZRX).
rate over the next three years. That would imply Buy-up-to Price: See the portfolio page here.
0x facilitating over $70 trillion in trading volume Stop Loss: None
by the end of 2024. Buy It On: Coinbase, Gemini, Binance, or
Uniswap
And if we use the same 0.01% trading fee, 0x Store It On: MyEtherWallet or Ledger
would rake in $7 billion in annual profits for its Position Size: $200–400 for smaller traders or
ZRX token holders. $500–1,000 for larger traders
Asset Class: Cryptos (Altcoins)
Now at this point, we’d consider 0x’s hyper-
growth phase to be in its past. And for that Let the Game Come to You!
reason, we’d give it an earnings multiple of 25 –
matching Coinbase. Big T
Customer Care: Toll-Free: (888) 501-2598, International: (561) 921-8774, Mon–Fri, 9am–7pm ET, or email support@palmbeachgroup.com.
© 2022 Common Sense Publishing, LLC, 55 NE 5th Avenue, Delray Beach, FL 33483. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is
prohibited without written permission from the publisher.
Information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal situation—we are not
financial advisors nor do we give personalized advice. The opinions expressed herein are those of the publisher and are subject to change without notice. It may become outdated and
there is no obligation to update any such information.
Recommendations in Palm Beach Research Group publications should be made only after consulting with your advisor and only after reviewing the prospectus or financial statements
of the company in question. You shouldn’t make any decision based solely on what you read here.
Palm Beach Research Group writers and publications do not take compensation in any form for covering those securities or commodities.
Palm Beach Research Group expressly forbids its writers from owning or having an interest in any security that they recommend to their readers. Furthermore, all other employees
and agents of Palm Beach Research Group and its affiliate companies must wait 24 hours before following an initial recommendation published on the Internet, or 72 hours after a
printed publication is mailed.
11
www.palmbeachgroup.comYou can also read
