*This one-page memo serves as a professional exercise in crafting investment memoranda. It is not affiliated with ICP or any other project. The author aims to refine their skills in writing comprehensive and effective investment memos.
Applicable constraints: Length- 1 page or as brief as possible*
Proposal: Strategically Amplify Investment in ICP Token
Pitch:
The Internet Computer (ICP) project is a revolutionary blockchain-based platform designed to decentralize the internet. A blockchain project by the Dfinity Foundation, ICP serves as a crypto cloud, replacing traditional IT. Through its unique architecture, ICP enables developers to build fully decentralized applications without relying on third-party platforms like AWS.
As we move into the future, every aspect of this blockchain technology is moving on-chain. This puts ICP in the pole position to take advantage of the near and distant future. With a strong development team and a growing community, ICP has significant potential for growth and adoption.
Market:
The rise of decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized applications (dApps) drive the need for a secure, scalable, and user-friendly platform. ICP's unique value proposition and early mover advantage can materialize in significant market share.
DeFi, in particular, has seen significant growth, with the total value locked in DeFi protocols exceeding $100 billion. NFTs are another key driver of the market, with the global NFT market size expected to reach 217.07 billion dollars by 2032 growing with a CAGR of 22.05%.
ICP's ability to support the development of decentralized applications (dApps) is a key factor in its market potential. The market for ICP is characterized by a growing demand for decentralized and scalable blockchain solutions, and ICP is well-positioned to capitalize on this trend.
Timing and Opportunity:
The current FDV of Internet Computer (ICP) stands at $4.3 billion, indicating significant potential for growth. The architecture of ICP has also inspired the Beacon upgrade of Ethereum, a testament to its innovative approach and technical prowess.
TAM: Due to the immense upside potential and possibilities, it is challenging to determine the TAM for platform enablers like ICP. However, we can draw parallels with projects like Ethereum, which has a current FDV of $428 billion. The approval of ETH ETFs and the impending bull market are expected to drive further growth for Ethereum.
The price of ICP at the time of writing is $8.15, 98.92% down from its ATH. Thus, deploying substantial capital at this stage would yield maximum benefits to the investors. ICP can easily surpass the current FDV of Ethereum and has the technical capabilities to grow even further. Upon analyzing the project's technical acumen and compelling vision, I believe that it is substantially undervalued, presenting a compelling investment opportunity.
Distribution and KPI:
Circulating Supply: 465,321,934 Total Supply: 519,946,387
Current Value of ICP: $8.34
Developer Activity: 1 core project with 80 repos. 149 projects with 9760 repos.
Considering noc (number of commits) to be our yardstick, ICP comes at the top.
FDMC: $4.3 billion [ Fully Diluted Market Cap]
Volume: $107 million+/day.
Team and Funding:
ICP was launched by the Dfinity Foundation in May 2021. Dfinity Foundation is a not-for-profit (NFP) organization formed in 2016 by Dominic Williams. This organization is based in Switzerland and is focused on building full-stack decentralization on a sovereign network that extends the Internet.
The most compelling factor supporting optimism about this project is its leadership, comprised of seasoned researchers and field experts. The Dfinity Foundation boasts 1600+ employee publications, with 100,000+ citations and 250+ patents. The Dfinity Foundation has 270+ people, committed to initiating mass adoption of public blockchain as a single technology stack that hosts all of humanity's systems and services.
The ICP project has received $167 million in funding from various investors. Prominent backers of this project include a16z, Polychain Capital, and Multicoin Capital. This funding has been used to support the development of the ICP protocol, integrate new features, and expand the network's capabilities.
