From David Einhorn’s latest letter to investors, via Josh Brown:
we wonder if the market has adopted an alternative paradigm for calculating equity value. What if equity value has nothing to do with current or future profits and instead is derived from a company’s ability to be disruptive, to provide social change, or to advance new beneficial technologies, even when doing so results in current and future economic loss?
Brown recently wrote a post with similar sentiment. It’s interesting to think about how business models and values are changing in light of the recent token sale boom. And beyond token sales, there will be successful projects that will operate completely decentralized and based upon the exchange of tokens. There still won’t be any public financials and traditional valuation methods will likely be just as challenging as they are now.