A surge of transformational technology is coming to the world of Economic Science. Digital tokens—including bitcoin, altcoins, and other cryptocurrencies — will require a radical rethinking of valuation, in the same way that the introduction of the stock market required a new understanding of value.
As of this writing, the total value of all tokens stands at $700 billion – which includes Bitcoin and other cryptocurrencies as well as digital asset tokens that represent real-world assets.
How do investors place value on a computer code, with no central bank or tangible asset to support it? Modeling from the literature on behavioral economics and mechanisms from cognitive psychology, we aim to provide the first anchor to understand the principles that investors are deploying to value new digital assets, making this one of the first studies of applied behavioral economics on token valuation.
Using a new instrument called the TEDAP, we show how value can be created out of “thin air,” and how tokens, and indeed the entire digital economic system, work as something like a “vote of confidence.”
TEDAP – Token Evaluation and Digital Asset Prediction
Asset tokenization is an extension of blockchain technology that allows digital assets to be bought, traded, and sold on blockchains. Digitizing real-world assets will help create universally accessible, fast, liquid, and transparent investment and financial systems. Tokenization is already adapted and disrupting a variety of industries, particularly the financial and real estate industries.
TEDAP assists investors and crypto-asset trading platforms to get a very accurate forecast on the performance, profitability, and stability of any crypto asset. However, there remains a residual risk outside of the technical and financial aspects – which are almost entirely of legal and regulatory nature.
TEDAP has therefore formed a collaborative alliance with SoloAsistencia to provide a specialized legal framework to overcome any regulatory and legal hurdles to the path of tokenization.