The purpose of these weekly updates is to give you a snapshot of where the fund is sitting both in both market, fundamental (or intrinsic) and liquid values. Normally they will be very brief with little to no discussion. There will be more discussion heavy reports quarterly.
Too Long, Didn’t Read- Overview
The second week has yielded just over 3.6% and this is almost exactly a statistically average week. We saw a steady drop in the value of major crypto-currencies, resulting in most of this week’s profits being from the algorithmic trading.
In the markets the value of CHT on each individual exchange has remained relatively stable, however after the last report, investor’s attention turned to the decentralised exchanges looking to pick up more CHT at a lower price than the centralised option. There has been very few looking to liquidate which is great for all investors as it helps to strengthen CHT’s market position and investors holding via proxy.
With the fund pushing forward with strong growth results and our first major listing coming up in August, we expect that we will see a BUY or HOLD from most investors at this point. More information will be coming out about this listing very soon, including joint PR announcements and a Countinghouse Vlog on the topic. Keep an eye on the Telegram and other social media channels.
CHT Weighted Market Value is (at the time of preparing this report): 0.002536455ETH or $1.05USD
CHT Average Market Value is (at the time of preparing this report): 0.0061ETH or $2.53USD
Since our last report we have seen investors moving over to the decentralised exchange options to snap up CHT at a lower price than the centralized option. But apart from that, the market prices have remained relatively unchanged. Of course the move over to the decentralized options has affected the weighted outcome and now that we have had some more trades these figures are based on last sold price and last sale volume. As time goes on we will have more data and be able to give more and more accurate market values. Below we have a matrix of the exchange rates and last sale volumes as of the time of preparing this report.
Fundamental or Intrinsic Value
As we still don’t have enough running data for this calculation, it has been based on historical information. As such it has not changed, except for ETH value due to the value of ETH dropping over the week.
Fundamental value (sometimes referred to as intrinsic value) is a calculation to determine the actual value of a share, unit or in this case a token when looked at as an investment. So this is not the same as liquid value, which we will get into in the next section.
There are many ways to calculate this value, we have chosen the Jae Jun Intrinsic Value Formula. The main reason we like the Jae Jun is because it is one of the most conservative calculations there is. Now we have kept to how this is traditionally used and that is to base it on a 10 year return, factoring in the yield reducing over time. We have also taken an extra step to be even more conservative on this calculation; Jae Jun reduced the ‘no growth PE ratio’ from 8.5 to 7 but due to the increased volatility in the crypto market we think it is more prudent to reduce this value all the way to 1 (this value operates as a multiplier in the calculation so reducing it to one is very significant in the results the formula we return)
Intrinsic or Fundamental Value (V) of CHT: 4.25ETH or $1,764.01USD
Intrinsic value is represented as a ‘V’:
Liquid Value and Fund Growth
Liquid Value is the value of the assets the fund holds divided by the number of tokens in circulation. This is effected by the performance of the fund and the ETH value is effected by the value of ETH against the USD.
The fund had a liquid growth of 3.61%, this is almost exactly what we would expect statistically, but of course, we expect some above and below average performance week on week but overall you would expect about 3.6% weekly as an average.
Of course due to the reduction in the value of ETH against the USD the ETH value has jumped up quite a lot but this is purely due to the ETH/USD exchange rate.
The current liquid value of CHT tokens with all the above mentioned factored in is: 0.00143ETH or $0.59USD
Another positive growth week for the fund and a growing market awareness of the valuable nature of a token that benefits from downturns in the BTC and ETH markets. This should be further bolstered by the upcoming exchange listing and the related increase in CHT promotion to investors.
If you haven’t yet invested in CHT it is still intrinsically a good value holding at market price and it’s likely to increase once we are on the larger exchange, so there’s still opportunities for new investors.
For current investors, we have seen some pleasing results, we are looking forward to you joining us for the future growth in both market and the liquid fund!
Thank you to all our investors, as always you can contact us on Telegram (link at the bottom of the screen) or by email: Contact@countinghousefund.com