Value Investment Diary - February 2
Today I analyzed the currency cake.
After the reform, the average monthly destruction value is around 5 million U.
Currently, it has dropped to 1.5 U, with a total market value of 600 million.
Roughly speaking, it can be completely destroyed in 10 years, which means a price-to-earnings ratio of 10 times.
This is one of the very few currencies that have actual profit support and truly repurchased and destroyed coins.
Even the destruction of BNB also amounts to a price-to-earnings ratio of 20 times.
Therefore, based on the data, a rational judgment indicates that CAKE is fully worth buying.
However, it is still falling at the moment; why is that?
Of course, it's because the bear market cycle has arrived, and cake will also fall along with it. This bear market may last for a year and a half.
Thus, buying CAKE at this time seems a bit risky.
Additionally, after entering the bear market, a decline in trading volume cannot be ruled out, which will also reduce repurchases, and the price-to-earnings ratio may exceed the current 10 times.
At the same time, we must consider the activity and competitiveness of the BNB public chain, as well as factors such as Binance's own activities.
Despite these risks, I have not seen any currency on the market with such a strong repurchase effort.
Therefore, regular investment in cake is acceptable.
The above analysis is for reference only.
#cake $