How to correctly value tokens

There is debate within the token economics space about how to correctly value tokens. Market cap? Liquidity? Real vs subjective value?

We broke it down to the fundamentals to explain where tokens get their value from, and how to quantify it.

Full article: https://thoughts.simplicitygroup.xyz/p/how-to-value-tokens

Token Vs Equity Fundraising

SAFTE (Simple Agreement for Future Tokens and Equity) and SAFEs (Simple Agreement for Future Equity) combined with Token Warrants have become the go-to choices for investors in the current market.

However, few questions have been asked if this is a sensible investment strategy. How can your equity and token both accrue value? How do projects ensure both sets of investors are happy?

We delve into whether this potential conflict of interest can be resolved, and how projects should navigate this conundrum.

Full article: https://thoughts.simplicitygroup.xyz/p/tokenvsequity

Economy Spotlight: Filecoin

Filecoin is a decentralised storage provider powered by $FIL. What does its economy look like? It's simple and efficient, but with 1 fundamental factor that causes an uphill battle for $FIL.

Full Article: https://thoughts.simplicitygroup.xyz/p/economy-spotlight-filecoin

How is Money Created

Join us for a new look Macro Monday! We won’t just be summarising macro events, we’ll be explaining key macro concepts.

Today we talk about money, money is at the heart of the financial system but few truly understand how money is created by banks.

This understanding shapes our thesis on the importance of crypto!

Full article: https://thoughts.simplicitygroup.xyz/p/commercial-banks-create-money

What is quantitative easing and why it's different to money printing

In crypto we all love the idea of Powell’s money printer (bullish). However, the money printer is often misunderstood, specifically when concerned with the phenomena of quantitative easing.

We're here to help you understand what QE actually is and how it differs from money printing despite the common misconception.

Full article: https://thoughts.simplicitygroup.xyz/p/quantitative-easing

Token holders are not users

These two terms are not synonyms. There are projects where the token is intrinsic to the function of the protocol, thereby creating massive overlap between holders and users, but often that's not the case.

We explore this relationship to explain where the distinction lies and how to avoid running your project into the ground.

Full article: https://thoughts.simplicitygroup.xyz/p/token-holders-are-not-users

Dollar Milkshake Theory

On this week’s Macro Monday we take a look at the Dollar Milkshake Theory as a potential bullish driver for markets.

The US dollar sucks liquidity from global markets which harms other currencies... Is it possible that countries have had enough, and could BTC be the solution they need?

Full article: https://thoughts.simplicitygroup.xyz/p/dollar-milkshake-theory

Economy Spotlight: Boson Protocol

Boson is a decentralised fair-exchange protocol that utilises $BOSON. The token has great fundamental purpose, but its implementation falls short. Find out why here.

Economy Rating:
Amber 🟠

Full Article:
https://thoughts.simplicitygroup.xyz/p/economy-spotlight-boson

Proof of Stake is bad

...for decentralisation. Web3 is all about ownership, which cannot truly happen without decentralisation. Thus, PoS, with its fundamental flaws regarding this, is bad.

But it does have a strong defence, seldom discussed.

Full article:
https://thoughts.simplicitygroup.xyz/p/pos-is-bad

As we usher in the New Year, we're thrilled to announce Simplicity Group is evolving and reaching new heights – and our latest milestone is a testament to this journey.

🌟 Introducing our brand-new website: www.simplicitygroup.xyz 🌟

Our new online home is a reflection of our commitment to simplicity, innovation, and excellence.

How to detect rug-pulls

Unlike the scammers, most retail investors don't know how easy it is to create rug-pulls; thus, sadly, they keep losing their money.

We were on Arcanum Ventures' Boom Room to shine a light on common rug-pull strategies, in hopes that people can learn from it.

Full episode: https://www.youtube.com/live/k0bzqJXm9-s?feature=shared&t=2500

It takes some companies much longer to find their first customers after the live product. It took Airtable 3 years, and they're now worth +$11Bn. Don’t give up and keep building.

2023 Investment Overview

View a high level overview of 2023 fundraising in digestible charts.

Whilst the year seemed slow, the level of overlooked activity during the bear market has us excited for what's in store for 2024🔥

To everyone gearing up for the new year of crypto conferences, check out our 2024 Conference List

Secret investment formula

The Kelly Criterion Formula is shunned by many but is utilised by the likes of Warren Buffet and Charlie Munger to calculate investment allocations and portfolio distribution.

It is a great starting point in avoiding gambler's ruin and maximising returns.

Full Article:
https://www.simplicitygroup.xyz/blog/kelly-criterion