Golem (GNT) Fundamental Analysis

Since the emerging crypto asset class is much like venture capital with liquidity, performing a quick market size analysis can provide insights into potential fundamental asset value.

What is Golem (GNT)?

Golem plans to become an “Air BnB” like platform for computing power. “Renters” would request computing power from providers on the platform that would then provide their computer’s excess computing power for payment. Eventually Golem seeks to expand the model and become a software distribution channel as well. Golem (GNT) tokens derive fundamental value from the amount of on-platform activity (Supply/Demand).

Questions to Consider when Investing  

  1. Is there a published whitepaper? 

Yes…positive

  1. Is there a detailed development road map? 

Yes, Golem “Brass” beta was launched on the Ethereum main-net in April 2018… positive

  1. Does it use an open, public blockchain, and is the code published? 

Yes…positive

  1. Is there clear, logical, and fair pricing? 

Yes…positive

  1. How strong is the reputation of the founding development team (Strong, Mediocre, Weak)? 

Strong…positive

  1. How strong is the technology’s differentiator (Strong, Mediocre, Weak)? 

Strong…positive

  1. How competitive is the industry the asset is entering (Strong, Mediocre, Weak)? 

Strong…negative

Price Target:

Assuming:

  1. The Golem team delivers on the technology.
  2. Golem is able to gain a 50% market share by cutting prices in the market by 75%.
  3. A 30% discount rate is used to bring future price targets (2 years in this report) to today’s dollar values. Although 30% is significantly higher than the current risk free rate, crypto assets must be discounted significantly to account for risk.

Golem is looking to disrupt the entire global Public Cloud Services market which is forecast to be $383.355 billion by 2020, yet a more immediately applicable market would be the global Platform-as-a-Service (PaaS) market, which is forecast to be $14.798 billion by 2020. Using the PaaS market is preferable as it is most immediate Golem use case.

Given the assumptions (above) the 2-year Golem (GNT) price target is given below:

golem gnt fundamental analysis