SUSHI Could Hit $100 Soon As it Rallies Ahead, Todaro Says

SushiSwap’s governance token, SUSHI, could get to $100, which represents five times its current price, according to John Todaro, head of business development at TradeBlock. 

One of the Biggest Successes in DEXs

SushiSwap is a decentralized cryptocurrency exchange based on the Ethereum blockchain. Its price rose to about $19, a 30-fold increase from a low of November 2020. Todaro wrote in Thursday’s Bankless newsletter that the protocol has proven to be one of the greatest success stories in DeFi, with over $100 million in cumulative revenue since its introduction.

SUSHI holders receive a share of SushiSwap’s fees, similar to how stockholder holders can receive a dividend. SushiSwap recently started this mechanism by paying token holders a portion of exchange charges across the network.

Investors and participants in the market will now earn incentives through ownership of a valuable asset. Also, investors can assess assets paying for a prize at a quantitative stage since they can somehow predict future rewards.

Todaro noted that they often price dividend-paying stocks at an expected discount rate on the conventional equity markets by discounting future cash flows to date. In calculating cash flows, he used historical trading volumes and taxes.

The terminal growth rates consistent with the broader industry and economy are modeled at 3 percent annually. The terminal growth rate in line with the country’s GDP in which the business operates can be structured in such models. In the US, it usually ranges from 1.5% to 4% annually. SushiSwap is a young business and thus has a significant risk over more mature, traditional enterprises.

SUSHI’s Smooth Rally 

While other DEXes offer similar governance types tokens, SUSHI is different, as SushiSwap is one of the few projects that pays owners to own a coin. Hence, there has been a rise in demand. As of March 15, 2021, prices rose from just $2.1 in December 2020 to about $20.97 – an increase of 915 percent. While several other tokens on the market are glorified methods for speculating on cryptographic content, SushiSwap tries to do something special that is time-testing.

Todaro calculates the intrinsic market value of SushiSwap to be about $12.6 billion, or a cumulative token value of around $100 based on its assumptions.

Todaro cautions investors about significant market threats, including a slump in DeFi crypto-monetary trading despite high valuations. This overall risk in the industry will “heavily impact the amount and thus the trade costs of SushiSwap,” writes Todaro.

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TORN soars 200% as Tornado.Cash’s governance token becomes tradable

The decentralized finance (DeFi) “stimulus checks” keep coming as Tornado.Cash joins Uniswap, Badger DAO, StakeDAO, and others in “airdropping” a now-tradable TORN governance token to early protocol participants.

Tornado Cash, which is an Ethereum “tumbling” service that obscures transactional history in order to preserve user privacy (as well as allow scammers and hackers a method to launder their funds), first announced the launch of a governance token in December. A snapshot for the airdrop was taken for Ethereum block 11400000, which was mined on December 6th, and addresses which had interacted with the protocol prior to that point were entitled to an amount of TORN tokens weighted to the frequency and amount of Ether they used.

At current valuations, the distribution was one of the most lucrative for recipients to date. According to a post on community forums, the average recipient received 66.54 TORN tokens currently worth over $23,000, and the median user took in 21.24 tokens, worth $7500. The single largest recipient harvested over 2500 tokens worth a whopping $888,000.

The 500,000 airdropped tokens represent just 5% of the eventual 10,000,000 total TORN supply. The token had been locked as non-transferrable for 45 days, but that was released yesterday, and an additional 10% of the total supply is set aside for a “anonymity mining” program similar to liquidity mining.

Trading for the young token has been notably volatile. A liquidity pool on exchange aggregator and automated market maker (AMM) 1inch was established shortly after the token was unlocked, and TORN has a 24-hour high and low of $428 and $113, per Coingecko. At the time of writing the token currently trades at $350, and a pool has also been established on Uniswap.

Despite the airdrop bonanza, however, some have expressed skepticism that Tornado.Cash needs a governance token at all. The protocol currently works as intended, and the team transitioned the contracts to a state of immutability last year.

Additionally, in the governance announcement blog post the team did not specify what the DAO treasury or team reserves — a combined total of 8,500,000 TORN tokens locked in a 3-5 year vesting schedule currently worth $3 billion — will be used for, only that through a DAO “the users of Ethereum will control their own privacy protocol.”

In a Tweet from last year, Ethereum co-founder Vitalik Buterin seemed to echo this sentiment, saying that Tornado.Cash functions best as a “tool” rather than as an “ecosystem.”

Nonetheless, as asset valuations inflate across DeFi, this perhaps superfluous token drop likely won’t be the last.