Technology companies can have a valuations that is 1000X of their revenue in extreme cases. At the present time, AI generates the biggest interest from investors. A months ago, I wrote in detail about Rewind AI receiving a billion dollar valuation with only $707K in Annual Recurring Revenue. This is a very rare case and it is best to make estimates based on more commonly observed P/E Ratio.

What If We Value @leofinance Like This?

We cannot do a 1:1 comparison as regular startups and decentralized projects are very different in nature. Although @leofinance is behind the development of many amazing projects, the value of $LEO $CUB $POLYCUB do not depend solely on the revenue generated by the company. What I suggest is using some metrics from traditional finance to get a clearer picture on the state of a blockchain project.

We have already seen how revenue can negatively affect the biggest DAPP on HIVE. @splinterlands would be in a much better place now if there was more revenue coming to the developers.

P/E Ratio of 40 for Cryptosphere

I consider this to be a fair estimate that does not swing to the extremes. @onealfa has come with a Premium Lottery to encourage purchasing a Premium subscription.

If we reach 100 Premium users, that will be $12,000 in Annual Recurring Revenue. We have not yet seen the influx of users that bull markets bring in. Reaching 200+ Premium users in 2024 is a very realistic goal. Do some simple calculations and figure out a valuation.

• $480,000 with 100 Premium users
• $960,000 with 200 Premium users

Selling Premium subscriptions is not the only thing @leofinance is doing to bring in revenue. There are ads on the website and CubFinance, POLYCUB and future CUB Outposts will be factors to consider.

Premium is Good for $HIVE + $LEO

The incentive loop for Premium is fascinating. Due to the fact that 100% of the revenue generated by premium subscriptions purchases LEO and HIVE (in equal quantities) on the open market and then permanently deploys them into a liquidity pool, anyone who holds LEO or HIVE is incentivized to not only be a Premium member but actually reward people who are Premium.

The features presented on the welcome screen are not the only features offered to the user. Increased liquid and additional buying pressure on two assets that users are already earning is considerable perk. All the money ever spent on Premium will go to a liquidity pool. That is going to accumulate over time.

Calculations for 10K Users for 10 Years

Those conservative and very realistic numbers above would mean $6 million dollars worth $HIVE + $6 million dollars worth $LEO will be permanently locked to provide liquidity and and minimize slippage. If it is not easy to buy and sell large quantities of Tokens, Whales or even Orcas are not going to invest. There have been times where I single handedly made massive splashes in $CUB and $POLYCUB price in the early days of the project. I am at best a Dolphin. I should not be able to even do that.

Visuals Matter

Some of you are going to spend hours on blockchain. Some of you are writing your articles on the UI offered to you. Comments are obviously written on the front end you are using. Even a casual user is going to spend a few hours a week enjoying the social media activities and expanding your knowledge. I have seen many articles, investment lessons, trades and reports that are on par with paid investment newsletters for fee. It makes sense to be a regular reader of InLeo.

If you have already found your favorite interface that has all the things you need, then you are lucky and I congratulate you! I found a better look when I chose Green for the UI. I like the colour and I find it to be easy on the eye.

A Better Alternative to Bid Bots

I had to scroll down almost a minute to find a Thread from a user who had not bought a Premium Subscription. This is an optional pay to play system. LEO Premium allows users to spend money to get a better treatment form the algorithm. This only applies to the recommended feed and users can always opt out for a different front end if they want something different.

We may see other front ends develop algorithm based feeds for their users. @peakd has already beaten InLeo for AI generated summaries. This is absolutely wonderful! This is free market competition bringing the best features for the users. This variety is a superpower of decentralized social media. There is no single option users are stuck with.

Test Premium Once

Premium features are still in development. I have been enjoying the new features so far. Until you test out for yourself, it will be very difficult to know what you are missing out on and whether you even need those features. I have been using Premium for a week and I plan to stick with the subscription for a long time. Currently there are no recurring payments. I have to make one transaction every 30 days.

The Liquidity Pool carried a lot of weight when I made my decision to become the 72nd person to become a Premium user. @khaleelkazi or any other team member will not pocket the money. The revenue goes to help the entire community. If you do not care about the Premium features, you can consider it a donation for the community. I don't want any user to feel bad for not purchasing Premium. What I want to do is share my experience and my own reasoning behind my actions.

If these reasons make sense to you, then act accordingly. If you cannot afford the 10 HBD per month, stick around and keep blogging. Learn from the community and make investments. After some time, you will be able to afford Premium. If you still don't like the offer, don't dwell on it. Decentralization allows anyone with skill and resources to develop their front ends in the way they see fit. You do not have ask permission in decentralized projects. If you think you can do better than @leofinance, please start your own project. More activity and DAPPs on HIVE is good for my portfolio 😇

Posted Using InLeo Alpha