Drivers of Valuation Need
Financial Reporting
Tokens are frequently issued to employees and advisors as deferred consideration for services. Fair Value of this expense on your income statement requires valuation.
Portfolio Reporting
Crypto-Asset funds are often issued warrants for tokens. This can trigger valuation needs under ASC 820 as well as LP reporting.
Taxation
Tax implications can exist for both the issuer and receiver from the issuance of tokens. Altering your legal entity structure? This could trigger transfer pricing considerations or the valuation of illiquid tokens being transferred among entities.
Investment Considerations
Investing in ICOs? Crypto-assets could contain poor disclosures in relation to the assumptions used to price the tokens issued, often resulting in questionable valuations.
"Of the nearly 10,000 tokens in the crypto market, I believe the vast majority are securities. Investors deserve disclosure."
SEC Chair Gary Gensler
September 2022
Valuation Methods
The selection of valuation model depends on each project's specific circumstances.
Typical approaches utilized:
- Asset Approach
- Market Approaches
- Discounted Cash Flow
- Quantity theory of money (QTM)
Our
Process
Firm
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Document
Collection
Meld valuation
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Valuation
Modeling
Meld valuation
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Draft Reports
Delivered
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Firm Review
& Approval
Meld valuation
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Audit
Support
Why Meld Valuation?
Expert level rigor
Experience, Independent, and Transparent - We keep up to date on the latest SEC and AICPA guidance.
Flexible turnarounds
We are set up to meet your deadlines. Contact us to learn more.
Timely Replies
We are always available to answer your questions.
Dan Eyman, Managing Director
"At the early stages, asset and market approaches are most relevant."
