Authentic Qingyuan Talks about Cards I have nothing to do today, so I thought about the cards again I currently only have an observation warehouse for cards Cards, his income is high But the gross profit margin is low, and 30-40% gross profit in the cryptocurrency circle is not high Slow turnover speed To purchase and then sell But the purchase cannot come in Large turnover, high revenue, but low profit Similar to traditional wholesale enterprises Instead of the protocol layer of the cryptocurrency circle This platform still has inventory Is this inventory increasing in value or decreasing in value It's also a risk Normally, a wholesale enterprise with high inventory and low gross profit margin The valuation should be very low In fact, cards are a typical poor company in Buffett's eyes Busy all year round without making any money, only earning some inventory Inventory is a liquidity risk, and repurchase is also a liquidity risk The reason why the platform can operate is that in low liquidity markets, the platform bears liquidity risk Discount is the liquidity compensation obtained by the platform Due to competition, it will ultimately lead to compensation that cannot compensate for the liquidity risk consumed by the platform This thing is terrible in the stock market But it's quite different in the cryptocurrency industry Because 99.9% of projects in the cryptocurrency industry are Xiang Something bad but feasible in the short term is enough to stand out in the cryptocurrency industry One question, how big is the market and how large is the audience That's enough, at the level of millions There are enough people The market size is 7 billion yuan at the first level, including several billion yuan at the second level Currently, there have been many KOLs calling out cards I also obtained the bottom warehouse from this location Hehe, I didn't study this thing in time because I went out to play before Platforms like Uni and Hype have zero inventory, with turnover equal to gross profit. The financial model and cards are significantly different The protocol gross profit of the cryptocurrency circle is 100% The protocol layer of the cryptocurrency circle defaults to zero cost, with a maximum payment of gas or user payment The revenue from the agreement has no marginal cost and does not require purchasing or inventory How did this gross profit come about? It was earned by the platform as the largest liquidity counterparty, taking advantage of liquidity risk Whether it's opensea or uni, users act as liquidity counterparties to each other and bear their own transaction fees. It is not a prerequisite for providing liquidity and inventory Of course, I understand that in traditional business models, a gross profit margin of 30-40% is relatively high How should valuation be done If we follow the PS of the cryptocurrency circle, we can achieve a very high level If viewed according to the PE of wholesale enterprises, it is very low And the upstream of this wholesale enterprise is unstable, with only one source manufacturer If in the stock market, such companies would be considered bad Placed in the narrative of cryptocurrency and RWA, it feels different Another issue is that there are no barriers There is also the issue of being choked by Binance. Smart you, silly brother asks you a question: Assuming I am a competitor of Cards I will take all the cards and not redeem them Didn't you give me a discount? I'll take everything at a discount and slowly sell it on my own platform at market price Or my agreement can offer a slightly better discount to redeem the cards and puncture the inventory of the cards Haha, how should we deal with such cards? Have you learned the small agreement? To summarize: Cards is a terrible but short-term business that cannot be falsified Riding on the narrative of RWA in the cryptocurrency circle, it has opened up a brand new market Having the breaking value of breaking through tens of millions of people in the short term In terms of price, I don't think it's a good price for small funds Because even if it reaches 2 billion, it's only three times as much For large funds, it depends on one's own risk preference PS. During his visit to relatives and friends, Silly Brother intermittently watched. If there are any errors, please feel free to point them out