Fair Value

[cahbagus555]

Hello,

I am creating this topic to understand is it possible to achieve the fair value while trading (crypto, gold, derivatives...)? I am conducting a research at the moment, because its crazy how market can go up and down, and (after all) there are some trading strategies named 'The Fair Value Trading Strategy' like this one: https://finance.yahoo.com/news/fair-value-trading-strategy-explained-153843774.html and definition from Zacks (https://finance.zacks.com/difference-between-premarket-futures-fair-value-10349.html) ''fair value is the futures rate before market opening adjusted for purchasing shares at the opening.''

So, my question is - do you know some platform or solution which can assist us to find out when the ''fair-value'' trading moment is? Or, does anyone has some tip? Advise needed. Thanks!

Maybe I'm wrong, in my opinion the definition of fair value is the balance of prices after there is demand and supply in the market. Price balance or fair value will occur when the market is in an active condition and also a large transaction volume.

[grintsch]

Most coins have no NAV (Net Asset Value) that would back their price, so to derive a fair value is incredibly hard. There are models like the one formalized by Chris Burniske (https://medium.com/@cburniske/cryptoasset-valuations-ac83479ffca7), but this is based on monetary supply theory and can only be used to derive a lower bound for the price.

The current valuations are mostly based on speculation, not the actual GDP that's being produced using them, so it gets even harder. This is why - across the field - technical analysis is what most analysts are sticking to.

[Wysi]

Most coins have no NAV (Net Asset Value) that would back their price, so to derive a fair value is incredibly hard. There are models like the one formalized by Chris Burniske (https://medium.com/@cburniske/cryptoasset-valuations-ac83479ffca7), but this is based on monetary supply theory and can only be used to derive a lower bound for the price.

I have noticed some of the new altcoins are being backed by assets like gold, charcoal, renewable energy,  oil and petroleum as they want their price to be based on their backed assets rather than just demand and supply which can be easily manipulated and it's good to see assets backed coin entering the market which might be a game changer if managed well.

The current valuations are mostly based on speculation, not the actual GDP that's being produced using them, so it gets even harder. This is why - across the field - technical analysis is what most analysts are sticking to.

There are some new altcoins which are backed by assets like gold  charcoal,  renewable energy, oil and petroleum etc which might be the game changer as there as they will not be dependent on just demand and supply which is prone to manipulation rather they have real products to be bases upon. More investors will be attracted to these assets backed crypto than traditional one.

[Ani_]

Most coins have no NAV (Net Asset Value) that would back their price, so to derive a fair value is incredibly hard. There are models like the one formalized by Chris Burniske (https://medium.com/@cburniske/cryptoasset-valuations-ac83479ffca7), but this is based on monetary supply theory and can only be used to derive a lower bound for the price.

I have noticed some of the new altcoins are being backed by assets like gold, charcoal, renewable energy,  oil and petroleum as they want their price to be based on their backed assets rather than just demand and supply which can be easily manipulated and it's good to see assets backed coin entering the market which might be a game changer if managed well.

The current valuations are mostly based on speculation, not the actual GDP that's being produced using them, so it gets even harder. This is why - across the field - technical analysis is what most analysts are sticking to.

There are some new altcoins which are backed by assets like gold  charcoal,  renewable energy, oil and petroleum etc which might be the game changer as there as they will not be dependent on just demand and supply which is prone to manipulation rather they have real products to be bases upon. More investors will be attracted to these assets backed crypto than traditional one.

Yeah! That's what took my attention too. Creating way bigger ecosystem and opportunitites

[Serco]

Most coins have no NAV (Net Asset Value) that would back their price, so to derive a fair value is incredibly hard. There are models like the one formalized by Chris Burniske (https://medium.com/@cburniske/cryptoasset-valuations-ac83479ffca7), but this is based on monetary supply theory and can only be used to derive a lower bound for the price.

I have noticed some of the new altcoins are being backed by assets like gold, charcoal, renewable energy,  oil and petroleum as they want their price to be based on their backed assets rather than just demand and supply which can be easily manipulated and it's good to see assets backed coin entering the market which might be a game changer if managed well.

The current valuations are mostly based on speculation, not the actual GDP that's being produced using them, so it gets even harder. This is why - across the field - technical analysis is what most analysts are sticking to.

There are some new altcoins which are backed by assets like gold  charcoal,  renewable energy, oil and petroleum etc which might be the game changer as there as they will not be dependent on just demand and supply which is prone to manipulation rather they have real products to be bases upon. More investors will be attracted to these assets backed crypto than traditional one.

that's not truelly backed up by real asset, so far i never see projects that able to prove their projects really backed up gold or anything else.investors more interested in projects that will developt new version of blockchain.this kind of projects only use   crypto name to make investors interested.in exchanges they could no thing to make it success.

[btc_angela]

So, my question is - do you know some platform or solution which can assist us to find out when the ''fair-value'' trading moment is? Or, does anyone has some tip? Advise needed. Thanks!

With this kind of volatile market, fair value per se can't be determined, unlike any other markets we have right now. Heck, even ICO who started says that their tokens is worth this X amount. But after getting listed on an exchange, the price suddenly change for the worst. And besides, there is manipulations, wash and fake volume tradings, pump-and-dumps so its going to be difficult to answer your questions.

[level01]

So, my question is - do you know some platform or solution which can assist us to find out when the ''fair-value'' trading moment is? Or, does anyone has some tip? Advise needed. Thanks!

With this kind of volatile market, fair value per se can't be determined, unlike any other markets we have right now. Heck, even ICO who started says that their tokens is worth this X amount. But after getting listed on an exchange, the price suddenly change for the worst. And besides, there is manipulations, wash and fake volume tradings, pump-and-dumps so its going to be difficult to answer your questions.

In financial markets, calculation of a ‘fair value’ is often a subjective matter. However, in derivatives markets no-arbitrage principles often dictate where the ‘fair value’ or, in other words, pricing should be.

Fair value is highly dependent on the spot rate. Therefore, if a retail investor submits an offer to an exchange this might be filled at a time when it is already below the fair value – an undesirable feature for investors. Such scenarios will disincentivizes them from submitting further offers to the exchange. To overcome this problem,Level01 FairSenseTM algorithm allows all investors to quote ‘relative offers’ to FairSense’s fair value. This allows investors to simultaneously compete for the best offers without overburdening them with a requirement to have their own algorithms for price estimation and implementing continuous quote updating manually.

[ansach]

hi .. great topic.. just want to say that level01.io has an android beta app where you can trade with demo coins.. its a good training ground

[B.wealth]

If there is a platform or site doing this, I don't think traders will be complaining of losing their money when trading, we should all just believe trading is a risk, just trade with caution and run for greed, then profit won't stop coming.

[fuer44]

"Fair value is the futures rate before the market opening is adjusted for purchasing shares at the opening." Underline the sentence, then you can understand how ico goes so far. so, when the token has not been listed on the market, the token has not been valued. with the opening of the purchase and investment before the token is released to the market, the price will still be cheap. but it also depends on how the situation will be when the market opens later. if the liquidity of the token is high, then the price of the token will also be high and we can get a profit. when talking about bitcoin or etherum for which the market already exists, then the theory does not apply and the value is determined. but the value can still change, depending on the demands of the coin.

if you want to join the fair value theory waiting for the market to open, ico can be the right choice but the risk is also great.

[mithun303]

Fair Value is abroad measure of an asset's worth and is not the same as market value, which refers to the price of an asset in the market place. In accounting, fair value is a reference to the estimated worth of a company's assets and liabilities that are listed on a company's financial statement.

although the stock market is volatile, it is a lot like the gold market. just as there is no control in the gold market,there is no control in the crypto market because i think the market is not regulated. It's a technology where you can perceive both the pumph and the dump.