It's too early to value assets by REV in an immature, high-growth industry like crypto.

Don't get me wrong, revenue is very much the ultimate goal for many crypto protocols, but just bc a protocol has high REV today doesn't mean it will have high REV in a few years.

Similarly just bc a protocol has low REV today doesn't mean it will have low REV in a few years.

Just look at Ethereum and Solana.

A complete flip in REV dominance in the last 2 years. Do you think that can't happen again?

I bet it will.

So how do you invest in early stage technology where things are constantly changing?

There happens to be an investing discipline dedicated to this, it's called venture investing.

In venture investing today's revenue isn't what matters, it's about projecting where revenue will be in 5-10 years based on the quality of the team, technical trends, and growth metrics. More art than science.

In 5-10 years when the crypto industry has matured and consolidated then perhaps REV and value investing frameworks will make sense. But for now, I think they will probably only lead people astray.