We live in a world now where success is all about the numbers and how much something it someone is potentially worth! Your dollar worth is firmly attached to your self worth and there no place more evident of this than in the crypto space.
Steemians like many crypto enthusiasts are often fixed on the price and if it goes up, down or side to side they have an opinion or rant about it!
No one knows where the price will go and what makes this worse Crypto is new asset class and because of this we don’t have a frame of reference to fall back on to provide some sort of way of understanding where we are and where we will end up.
Yes, I do realise crypto is not the same as traditional stocks that can be diluted and that the tokens have utility unlike shares but I thought I'd take the valuations of the top social media sites and apply it to Steems market cap and see what it would be like in a basic calculation.
Steem is now in its 3rd year with a current valuation of $0.16
How centralised social media sites perform
So let’s compare that with traditional social media sites that eventually went public.
It took Facebook 8 years since its launch to go public and be listed on the stock exchange
It took Twitter 6 years to get listed and have its shares traded publicly
It took Snapchat 6 years to get listed with its IPO
It took Pinterest 9 years for it to go public
( It took LinkedIn 8 years before they filed for an IPO
So by looking at it we’re 3/4 years away from being ready for institutional money to come into the system!
Do you think 4 years is long enough for Steem to mature into something Wall Street would be willing to invest in?
Perhaps I’m biased, but I think so!
Valuation
Here comes the fun part, with speciation and prediction of course comes the valuation!
So I thought it would be a fun thought experiment to see what Steem would be worth should they absorb the current market cap of any of the currently publicly traded social media sites stocks!
Steems current market cap sits at 54.6 million dollars according to Coinmarketcap
*Images source - bespokepremium.com
Current market cap 15.76 billion dollars
That would 288x increase in value on the current Steem market cap
Crudely calculated would leave us with a single Steem costing $46.18
Snapchat
Current market cap 22.07 Billion dollars
This would make for a 404x increase in the market cap for steem
Leaving you with a Steem token speculatively sitting at $64 each
LinkedIn was publicly listed from 2011 to 2016 until it was bought by Microsoft for 26.6 Billion dollars
That is 487 times more than Steems current market valuation
Leaving you with a token value of $78
Current market cap 32.95 Billion dollars
Absorbing the market cap of Twitter into Steem would see a 603x increase in dollar value
Which would result in an assumed price of around $96 to get your hands on 1 STEEM
Current market cap is 534.04 Billion Dollars
This would be a whopping 9790 x gain on the current market cap
Resulting in a single Steem Coin having a price of around $1564
Important to remember
This is just a crude calculation and there are plenty of market factors at play that would affect the price of the coin such as the inflation, coins removed from circulation, coins traded and the dollars inflation rate.
But doesn’t take away from being a fun thought experiment for what prices could be like should that type of money find its way to the chain
The price of success
Would you stick around for valuations like that? What would your current Steem account be valued at? Do you think better prices will even make this a better place?
Let me know in the comments
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