Post
Topic
Board Altcoin Discussion
Re: Fair Value
by
level01
on 04/11/2019, 12:48:14 UTC

So, my question is - do you know some platform or solution which can assist us to find out when the ''fair-value'' trading moment is? Or, does anyone has some tip? Advise needed. Thanks!

With this kind of volatile market, fair value per se can't be determined, unlike any other markets we have right now. Heck, even ICO who started says that their tokens is worth this X amount. But after getting listed on an exchange, the price suddenly change for the worst. And besides, there is manipulations, wash and fake volume tradings, pump-and-dumps so its going to be difficult to answer your questions.

In financial markets, calculation of a ‘fair value’ is often a subjective matter. However, in derivatives markets no-arbitrage principles often dictate where the ‘fair value’ or, in other words, pricing should be.

Fair value is highly dependent on the spot rate. Therefore, if a retail investor submits an offer to an exchange this might be filled at a time when it is already below the fair value – an undesirable feature for investors. Such scenarios will disincentivizes them from submitting further offers to the exchange. To overcome this problem,Level01 FairSenseTM algorithm allows all investors to quote ‘relative offers’ to FairSense’s fair value. This allows investors to simultaneously compete for the best offers without overburdening them with a requirement to have their own algorithms for price estimation and implementing continuous quote updating manually.