I think I’ve found the most undervalued company of the modern era.
As a disclaimer: I am going to say a lot of things in the opening here that are going to turn some of you away or raise some eyebrows. That’s to be expected, that’s mostly the reason that this gem exists at these prices.
The first hurdle we have to clear to understand why this asymmetry exists is to identify and resolve all reasons why professional investors haven’t spotted this yet.
The biggest reason by far, and a quite valid one is it’s a cryptocurrency. You can make cases all day for Bitcoin and ethereum as they are the only two cryptos with institutional liquidity, but at the end of the day you’re going to suffer huge drawdowns like we’re seeing now. As far as I’m concerned, almost every other cryptocurrency is wildly overvalued. Something the market agrees with, as 1000s of coins tumbled close to 0 and are on life support over the last few months.
Those coins are mostly backed by VC interest or have decade long cults that are propping up their floor price. They have no actual clients and promote vague partnerships with big names to try to garner one last pump from the tokenization narrative.
Since most serious investors or people who can understand second order effects stay away from the space, the crypto market rewards loud marketing and exciting noise over long term sustainability. And THAT’s where the money is about to be made
Chainlink. Thats right, the hated coin that’s down 80% from the 2021 all time high. A boring infrastructure play that has tiny revenue, no marketing, and a toxic online community from 4chan guarding most information with unwelcome taunts and jeers.
Or is it? This brings me to the SECOND reason why this is under the radar. In this space with seasoned investors being few and far between, investors will blindly trust the team instead of listening to what the CLIENTS are saying. It takes 5 minutes to realize that the DTCC and SWIFT have been working with chainlink for many years in their work to move their businesses on chain and get to T+0 settlement.
If you use a conservative take rate of 0.0003%, which is significantly under the cost of what those systems incur per transfer today, you’re talking about 10s of billions of dollars in revenue. Which is what’s expected by the company, as you can see at 35:00 in the attached video.
https://www.youtube.com/results?sp=mAEA&search\_query=smartcon+2022
And as for the THIRD and final reason why price is so low is that pesky issue of value accrual that plagues most companies in this space. As of today, link buys back around 1/10000th of their supply per week. A tiny amount that causes anger and dismay among their community. They have no other flywheels to return value to the token. Since Dtcc and SWIFT are still not live but will be next year, as of today the token has no demand, and sits afloat a dying sector of scams with trump overseeing the further loss of credibility by the week.
What nobody is paying attention to is that over the next few years Chainlink is going to unveil and increase the limit of their staking pool to be a dynamic cap and target around 5% apr to stakers to incentivize securing the network for dtcc/Swift transactions.
That’s right. A token with only a couple hundred million revenue today and a 7.5 billion dollar valuation is soon going to have revenue of 20B+ and a 5% dividend with a mechanism that locks up a sizable portion of supply.
To recap, the reason this is $9 when a fair P/E in 4-5 years is $200 is that almost nobody serious is looking at altcoins, Chainlink doesn’t market themselves as a hype product, and in crypto 4-5 years is much too long for anyone to take the risk of holding waiting for staking and revenue to emerge.
So there you have it. Probably the last liquid 20x that’s easy to find after everything else is at crazy valuations across most sectors. And all the information is out there for you to independently verify.
If you have questions about the company leave a comment or DM me
And good luck making money!