Security Token Valuation Service

With the increasing popularity and public awareness of initial coin offerings (ICOs) and security token offerings (STOs). There is a huge demand for professional valuation services for cryptoassets. A comprehensive and well-structured valuation report is essential for a smooth execution of ICO / STO. Through the valuation report, targeted readers and users of the report can gain more understanding in relation to the underlying business of the ICO / STO and the economic and financial implication of such ICO / STO. With such information on hand as a starting point, relevant parties can seek for professional advice from different professional parties such as lawyers, accountants, tax experts and fund managers etc. in order to make well-informed business decisions.

Valtech provides comprehensive valuation services for clients who wish to conduct an ICO / STO. Here are the general procedures of how our valuation of an ICO / STO is conducted:

  • Understand the crypto project

  • Develop appropriate valuation model(s)

  • Monte Carlo simulations of major valuation inputs to illustrate possible outcomes

  • Compilation of valuation report with major assumptions, methodology, limitation and risk factors, sensitivity analysis in details

Understanding the nature of the ICO / STO

Since different ICO / STO has different characteristics, such as the technology adopted, underlying business that backs the ICO / STO, investment and financing structures etc. Valtech has a professional team which possess valuation expertise across different industries. At the early stage of the engagement, our team will conduct meetings with the clients and relevant parties to make sure that details of the STO are grasped.

Select and design the appropriate valuation model

Since cryptoasset is a new asset class so there are many variations of valuation models for cryptoassets and each of them has unique characteristics and application. With our professional expertise, our team would select an appropriate valuation approach to value the underlying business which back the STO and customized a valuation model that connects the valuation of the underlying business with the security token to be offered in order to derive a proper economic value of the security token of different projects.

Model simulation

Nowadays the business environment is ever-changing and the changes of valuation inputs and variables of the valuation model might have material impact on the STO. Our team performs simulations on major valuation inputs under possible scenarios and provides simulation results in our valuation model and reports to make sure that users of the report understand the possible valuations of the ICO / STO under different scenarios in order to gain a full view of the whole project.