The Cryptocurrency Disparity Ratio

In conjunction with our friends at CoinMarketCap, each week we’ll be producing the Crypto Disparity Ratio.

The Crypto Disparity Ratio recognizes the distinction between fundamental health (FCAS rating) and current market capitalization. A score above 1 reflects an undervalued asset, and a score below 1 indicates an overvalued asset.

June 6, 2019: Top Five CDR Undervalued Cryptoassets:

1. Remme (2.0)
2. POA Network (1.37)
3. XYONetwork (1.35)
4. Raiden Network (1.33)
5. RChain Holdings (1.23)

June 6, 2019: Top Five CDR Overvalued Cryptoassets:

1. AuroraOfficial(AOA) (.29)
2. Digix (.39)
3. MonaCoin (.40)
4. Waltonchain_EN (.41)
5. Monaco Coin (Crypto.com) (.44)

To identify those assets that are most under- and overvalued according to FCAS ratings, current market cap is converted into a standardized percentile, so that it can be directly compared on a 1,000-point scale.

The ratio of [Current FCAS] to [Current Standardized Market Cap] provides a relative over/under score:

• A value over 1 indicates an undervalued asset (that is the FCAS is higher than the market cap would indicate) and;
• A value under 1 indicates an overvalued asset (one whose FCAS is lower than we might expect).

Disclaimer. Do your own research, be a wise, thoughtful, considerate, mature and generally level-headed investor. Meaning: the information contained herein is not intended to be a source of advice or credit analysis and does not constitute investment advice.

The Cryptocurrency Disparity Ratio was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.