Analysis of mcxFEE (mcxNOW) valuations

[woodrake]

I've started using mcxNOW lately as my preferred altcoin exchange. There has been much debate in its trollbox about the valuation of mcxFEEs (pseudo-shares in the exchange).

I owned several mcxFEEs myself, and I therefore decided to undertake a detailed comparative analysis of its valuation.

You can read my analysis here:

http://ciphermine.com/2013/09/28/mcxnow-mcxfee-valuation/

Kate.

[erk]

The article makes sense, you always have to remember that the price,of the MCX/BTC coin pair is ultimately determined by market sentiments, not the underlying fundamentals, doesn't matter what you think mcxFEE is worth, what matters is what others think its worth. When the remaining 45,000 MCX enter the market the price may correct based on how quickly they are released, but until then MCX will trade higher on scarcity and favor.

[Lethn]

That's interesting thanks for that, I'm not very good at calculations so it was good to see someone who was go into the detail of how the exchange worked, I'm currently collecting interest myself and it's a nice way to earn money if you aren't good at speculation, it also protects yourself against the difficulty rise because it's almost like investing in a company.

Also, I haven't read through all of it but I don't see any where about security, I talked to RealSolid and on the chatbox and apparently he does store the large amounts of coin there offline so that means we shouldn't have to worry too much about hacking attempts.

[marcovaldo]

So we should sell the shares?
What will happen when new shares will be introduced?

[TheSpiral]

So we should sell the shares?
What will happen when new shares will be introduced?

Let me get my magic 8-ball. Be right back.

Okay, back. I shook it and it said "Ask again later".

In regards to the article, fiat will never be on mcxnow.com. Yes, the shares are currently overpriced, not accounting for future growth and resale value.

[QuantPlus]

Hi Woodrake, I guess you never saw the detailed numbers:

-mcxFEE: https://docs.google.com/spreadsheet/ccc?key=0AioqMMSVIC5tdFplWndsdmZuaGxyN01xemxtNWYxVGc#gid=0

-Interest: https://docs.google.com/spreadsheet/ccc?key=0AioqMMSVIC5tdFplWndsdmZuaGxyN01xemxtNWYxVGc#gid=1


Investors pay a BIG premium for GROWTH...
Ripping Market Share away from competing exchanges...
And being fastest growing company in a Space that could easily grow 10-fold in 2-3 years.

Let's look at events since the intro of mcxFEE share trading in early September:

(1) BTC deposits have rocketed from 828 (Sep 11th) to 7,118 (Sep 27th).

(2) I've done a 7 day moving average of payouts on BTC deposits...
And it's been steady at 8-9% annualized payout for those 3 weeks.

(3) You must realize that daily payments compound daily...
There is huge potential leverage if daily payments increase for any reason.

(4) This flood of $1,000,000 in 3 weeks into mcxNOW accounts...
Is primarily from sophisticated crypto traders scalping mcxFee shares...
It's just a beautiful thing to trade... and volume often tops 1,000 BTC/day...
In other words, > 20% of the Public Float changes hands many days.

(5) As more mcxFEE shares hit the market... volume will continue to grow...
Another 5-10% would be absorbed instantly.

(6) While other Crypto-Exchanges are dogging it on slim 0.2% trading fees...
RS will be in a position of STRENGTH to introduce other revenue streams...
And possibly raise fees somewhat on selected securities.  

(7) If you look at the LTC market share on Sheet "Test"...
mcxNOW has taken LTC market share from 2% to 29% in 3 weeks (away from BTC-e).

The above = RARE PHENOMENON...
And markets are much better at price discovery than analysts.

Of course there is risk in tech startups...
But with all due respect, your analysis is just letting traders buy-in 20-25% cheaper Saturday.

[erk]

So we should sell the shares?
What will happen when new shares will be introduced?

Let me get my magic 8-ball. Be right back.

Okay, back. I shook it and it said "Ask again later".

In regards to the article, fiat will never be on mcxnow.com. Yes, the shares are currently overpriced, not accounting for future growth and resale value.

Fiat would be handy, but ultimately it puts the burden of AML and many other restrictions on you. I wouldn't mind seeing an alt SHA256 coin on mcxNOW eg. ZET to get some transactions to boost mcxFEE revenues from the growing number of ASIC miners.

[TheSpiral]

So we should sell the shares?
What will happen when new shares will be introduced?

Let me get my magic 8-ball. Be right back.

Okay, back. I shook it and it said "Ask again later".

In regards to the article, fiat will never be on mcxnow.com. Yes, the shares are currently overpriced, not accounting for future growth and resale value.

Fiat would be handy, but ultimately it puts the burden of AML and many other restrictions on you. I wouldn't mind seeing an alt SHA256 coin on mcxNOW eg. ZET to get some transactions to boost mcxFEE revenues from the growing number of ASIC miners.

I'd agree that the world needs more (better) SHA-256 coins, there is currently PPCoin on there for now though... I have lots of Zetacoins, but I don't expect it to go anywhere honestly. Hopefully we'll see some awesome SHA-256 coins in the future.

And yes, that's why fiat wouldn't be on there, regulations. Just reciting what I've heard from the owner in that regard, the less intervention the better.

[Charles999]

Great Analysis on the Feeshares.  Prices on feeShares dropped recently on the BTCT boom.  Now that BTC has settled down a bit.  FeeShares are selling at a discount.  Get in and get some now.

I've started using mcxNOW lately as my preferred altcoin exchange. There has been much debate in its trollbox about the valuation of mcxFEEs (pseudo-shares in the exchange).

I owned several mcxFEEs myself, and I therefore decided to undertake a detailed comparative analysis of its valuation.

You can read my analysis here:

http://ciphermine.com/2013/09/28/mcxnow-mcxfee-valuation/

Kate.

[hawas]

Nice research
I have one thing to point out though, you underestimated the development needed to replicate the software. 3 devs working for 1-3 months is nowhere near a realistic estimate. (you would need that kind of time for production testing alone).
Other than that, +1.

[BitcoinEXpress]

I've started using mcxNOW lately as my preferred altcoin exchange. There has been much debate in its trollbox about the valuation of mcxFEEs (pseudo-shares in the exchange).

I owned several mcxFEEs myself, and I therefore decided to undertake a detailed comparative analysis of its valuation.

You can read my analysis here:

http://ciphermine.com/2013/09/28/mcxnow-mcxfee-valuation/

Kate.

What's your current analysis LOL


~BCX~