AltFi Capital estimates $1.88 fair value for SX
AltFi Capital is a crypto hedge fund that has invested in SX Network. This week, they initiated coverage on SX with a highly detailed research report that covers everything that is happening in the SX ecosystem. Some of the key takeaways from their report:
SX Network is the world’s largest blockchain prediction market ecosystem with over $220M in cumulative bet volume generating +$4M in protocol revenue attributable to token holders since inception.
$4M in cumulative protocol revenue places SX Network ahead of multi-billion dollar chains including Polkadot ($8.3B), Cosmos ($3.7B) and NEAR ($3.4B).
The SX Bet dApp (the leading dApp on the SX Network) has grown at an annualized rate of ~900% from Q220’ to Q222’ and is conservatively forecast to generate ~$298M in FY2022 volume translating into $6M in annualized protocol revenue. (1)
At the current $25M non-community market cap (2), this represents a 4.2x P/E ratio. At the fully-diluted $85M non-community market cap, SX Network’s P/E ratio of 14.3x is sub the S&P average of 21.5x.(3)
In April 2022, the SX team announced a completed raise of $9.5M, led by crypto venture fund HackVC — the project is well capitalized to execute its product roadmap.
The AltFi report estimates a $1.88 fair value price target on SX based on their discounted cash flow and comps analysis. We highly recommend checking out the full report and subscribing to their newsletter.