Thread by @JackNiewold

FTX token ( $FTT ) is crazy undervalued.

I can prove it.

Here's why @SBF_FTX's ERC-20 token is the most slept-on asset in the top 50 cryptos. 👇

First, a little bit about the crypto itself.

The main function of $FTT is that it entitles you to 1/3rd of @FTX_Official's cash flows.

For every dollar in fees generated by the exchange, 33% is used to buy back and burn the token.

That makes this crypto quite similar to an equity--cash flows buy the token up, then burn it, deflating the supply, returning that money to you.

It's like a stock buyback.

There's some other utility (collateral, discounts on fees), but we'll focus on the cash flows.

Ok, so $FTT is valuable because of its cash flows, and the cash flows come from exchange fees.

Let's take a look at the volumes and market caps of other exchanges.

Here's a look at the biggest exchanges by:
• Market Cap
• Daily Volume
• The ratio of these two numbers

FTX is the most undervalued by a mile.

Using Coinbase's multiples as a reference, FTX should be worth $200 billion TODAY.

A 10x undervaluation, TODAY.

And you can buy it, today. You don't have to wait for an IPO like you did with Coinbase.

Those volume numbers include deriv & futures markets, but even on spot alone FTX is undervalued.

FTX does 60% of the Coinbase spot volume on 28% of the market cap. That's not even including @ftx_us.

That means in the WORST CASE SCENARIO it's still undervalued by 2x.

I haven't even got to the kicker yet.

All the tokens together collect 1/3rd of the cash flows, so the token market cap should be 1/3rd of the valuation of the company. Makes sense.

The last round raised for FTX valued the company at $25 billion.

But if you do the math, the tokens value the company at right around $20 billion!

This means that if you buy the token, you are getting a better deal than VCs.

$FTT is basically on fire sale right now. 20% off.

Historically it's a rocketship as well. Against $BTC (and $USD), it's beat ETH, DOT, and ADA since Aug 2020.

Ok, but what about downside risk?

Well when crypto tanked this spring/summer, $FTT tanked with it: a 64% drop.

ETH: -61%
BTC: -54%

So it's a little more sensitive than bluechips, but nowhere near the downside risk of alts that dropped 75, 80, or even 90 percent.

Alright, I've plead my case. To recap:

• $FTT has the lowest Mkt Cap/volume ratio of any major exchange
• You can get it at a 20% discount to VCs
• It historically performs better than other alts
• Minimal downside risk

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