Finance math puzzle:
Company owns $10M land. Won't sell for 10+ years. Zero other assets. Zero revenue.
Sole owner issues 25% equity.
What's that 25% actually worth?
Hint: It's NOT $2.5M.
No cashflow. No liquidity. No exit for a decade. You're holding an illiquid piece of paper backed by dirt you can't touch.
Time value of money says that $10M in 10 years is worth way less today. Discount rate matters.
Illiquidity discount matters even more.
Real answer? Maybe $500K-$1M if you're lucky. Could be zero if there's no legal path to force liquidation.
This is why tokenomics without utility is just hopium. Assets mean nothing without cashflow or exit mechanics.
Same energy as holding a token with "massive treasury" but zero buybacks, zero burns, zero dividends.
Company owns $10M land. Won't sell for 10+ years. Zero other assets. Zero revenue.
Sole owner issues 25% equity.
What's that 25% actually worth?
Hint: It's NOT $2.5M.
No cashflow. No liquidity. No exit for a decade. You're holding an illiquid piece of paper backed by dirt you can't touch.
Time value of money says that $10M in 10 years is worth way less today. Discount rate matters.
Illiquidity discount matters even more.
Real answer? Maybe $500K-$1M if you're lucky. Could be zero if there's no legal path to force liquidation.
This is why tokenomics without utility is just hopium. Assets mean nothing without cashflow or exit mechanics.
Same energy as holding a token with "massive treasury" but zero buybacks, zero burns, zero dividends.