A Brief Look at Valuing Basic Attention Token

Basic Attention Token (BAT) has been soaring in the last ten days as traders anticipate a possible Coinbase listing.

BAT has moved from lows near $0.17 to trade at highs around $0.30. The move has extended recently, following the addition of 0x to the Coinbase exchange. The cryptocurrency exchange had talked of “exploring” five coins in the past apart from 0x: Stellar Lumens,  Cardano, ZCash and BAT. BAT has moved to number 31 in the list of coins by market cap but is still valued at more than 50% lower than its nearest competitor on the list in ZCash.

Basic Attention Token is a project that aims to decentralize the digital advertising market. The token is created on the Ethereum platform and can be exchanged between publishers, advertisers and users. The goal of the project is to eliminate middlemen, trackers and fraud.

basic attention token

The BAT token works alongside the Brave browser , which is an open-source, privacy-focused browser that blocks trackers and also contains a ledger system that captures user attention to reward publishers.

The token’s utility is derived from — or denominated by — user attention.

Worldwide Digital Ad Spend 2010-2018

BAT TOKEN

(source: statista)

The Basic Attention token currently has 1 billion tokens in circulation, so the current price represents a market cap of $280 million. Global digital ad spending is currently over $550 billion so there is a huge market for the project to pursue.

Maximum control of the digital ad world would make BAT tokens worth $550. This figure should be adjusted for share of the market. Even a 5% share of the ad market would give BAT a valuation of $25 – 100x its current valuation.

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