E-M
Account Closed (Disallowed)
- Impact
- −74
- 392 views
- 12 replies
- Negative points
Which is most valuable Stablecoins.com or Stablecoins.eth?
After an interesting conversation with ChatGPT using the 'Rosener Equation' i'm on the fence, based on ChatGPT's summary below which would one would you say is most valuable.
I asked ChatGPT the following 2 questions,
Question 1,
Please use the Rosener Equation to value 'Stablecoins.com'
Chat GPT Response,
The Rosener Equation is a method used to value a business based on its expected future cash flows. It is calculated as follows:
Enterprise Value (EV) = (FCF x (1 + g)) / (WACC - g)
Where:
Assuming that Stablecoins.com generates a steady stream of free cash flow, we could estimate its FCF by taking its net income and adding back non-cash expenses such as depreciation and amortization, and subtracting capital expenditures. Let's assume that Stablecoins.com has an FCF of $10 million per year.
To estimate the expected growth rate, we would need to consider factors such as the growth rate of the stablecoin market, the company's market share, and its ability to innovate and stay competitive. Let's assume that the expected growth rate of Stablecoins.com is 5%.
Finally, we would need to determine the weighted average cost of capital, which represents the average cost of the company's debt and equity. This can be a bit tricky as it depends on various factors such as the company's risk profile, industry norms, and prevailing interest rates. Let's assume that Stablecoins.com has a WACC of 10%.
Using these assumptions, we can plug the values into the Rosener Equation:
EV = ($10 million x (1 + 5%)) / (10% - 5%) = $200 million
Therefore, according to the Rosener Equation, the enterprise value of Stablecoins.com would be $200 million. However, it's worth noting that this is just one method of valuing a company and there are other factors to consider such as market conditions, competition, and regulatory risks that could impact the actual value of the company.
Question 2,
Being that Stablecoins are a web3 native technology and .eth is a web3 naming system, is Stablecoins.eth is more valuable than Stablecoins.com
Chat GPT Response,
It's true that "Stablecoins.eth" could be considered more valuable than "Stablecoins.com" in the context of the web3 ecosystem. This is because ".eth" is a naming system on the Ethereum blockchain, which is a core technology underlying many web3 applications, including stablecoins.
Here are some reasons why "Stablecoins.eth" could be more valuable than "Stablecoins.com" in the web3 ecosystem:
After an interesting conversation with ChatGPT using the 'Rosener Equation' i'm on the fence, based on ChatGPT's summary below which would one would you say is most valuable.
I asked ChatGPT the following 2 questions,
Question 1,
Please use the Rosener Equation to value 'Stablecoins.com'
Chat GPT Response,
The Rosener Equation is a method used to value a business based on its expected future cash flows. It is calculated as follows:
Enterprise Value (EV) = (FCF x (1 + g)) / (WACC - g)
Where:
- FCF: free cash flow
- g: the expected growth rate of free cash flow
- WACC: the weighted average cost of capital
Assuming that Stablecoins.com generates a steady stream of free cash flow, we could estimate its FCF by taking its net income and adding back non-cash expenses such as depreciation and amortization, and subtracting capital expenditures. Let's assume that Stablecoins.com has an FCF of $10 million per year.
To estimate the expected growth rate, we would need to consider factors such as the growth rate of the stablecoin market, the company's market share, and its ability to innovate and stay competitive. Let's assume that the expected growth rate of Stablecoins.com is 5%.
Finally, we would need to determine the weighted average cost of capital, which represents the average cost of the company's debt and equity. This can be a bit tricky as it depends on various factors such as the company's risk profile, industry norms, and prevailing interest rates. Let's assume that Stablecoins.com has a WACC of 10%.
Using these assumptions, we can plug the values into the Rosener Equation:
EV = ($10 million x (1 + 5%)) / (10% - 5%) = $200 million
Therefore, according to the Rosener Equation, the enterprise value of Stablecoins.com would be $200 million. However, it's worth noting that this is just one method of valuing a company and there are other factors to consider such as market conditions, competition, and regulatory risks that could impact the actual value of the company.
Question 2,
Being that Stablecoins are a web3 native technology and .eth is a web3 naming system, is Stablecoins.eth is more valuable than Stablecoins.com
Chat GPT Response,
It's true that "Stablecoins.eth" could be considered more valuable than "Stablecoins.com" in the context of the web3 ecosystem. This is because ".eth" is a naming system on the Ethereum blockchain, which is a core technology underlying many web3 applications, including stablecoins.
Here are some reasons why "Stablecoins.eth" could be more valuable than "Stablecoins.com" in the web3 ecosystem:
- Web3 relevance: As a naming system on the Ethereum blockchain, ".eth" is more relevant to the web3 ecosystem than ".com," which is a traditional top-level domain used for the web2 internet.
- Ethereum-specific: Because ".eth" is an Ethereum-specific domain, it can be used to create human-readable addresses for Ethereum wallets, decentralized applications, and smart contracts. This makes it highly relevant to the web3 ecosystem and adds value to domain names that use ".eth."
- Branding: In the web3 ecosystem, having a domain name that is aligned with the underlying technology can add credibility and branding value. This is particularly true for a domain name like "Stablecoins.eth," which is highly relevant to the Ethereum blockchain and the stablecoin market.
Last edited: