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.

Coinbase: One down Four to Go?

coinbase
Source: Coingape.com

In a recent article we highlighted the “Coinbase effect” that led to a 30% rally in 0x after it was officially listed on the cryptocurrency exchange.

The Coinbase rally and the rumour rally that preceded it led to big gains for 0x speculators. We mentioned that 0x was spotted on the exchange’s  reporting section days before the coin was announced for Coinbase Pro. The rally seen in 0x has led to another bout of FOMO and the four coins that we noted in our article are all showing gains today.

Coinbase had previously mentioned that they were exploring the possibility of five coins. These coins were: Stellar Lumens (XLM), Basic Attention Token (BAT), Cardano (ADA), ZCash (ZEC) and of course, 0x (ZRX). The four remaining coins are likely seeing gains from speculative buyers who are hoping to predict the next listing rally.

Coinbase has recently adopted a new listings policy, which allows project founders to complete an application form to be considered for a potential listing. The move came following criticisms over the previous selection policy, requests from users that they wanted more coins to trade, and more importantly to catch up to the growing competition from rival exchanges. With a new improved listings policy and a lofty valuation to keep up with, you can expect to see another coin listed more quickly than they have in the past.