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Bitwise CIO: Here’s Why Uniswap Feels Undervalued at $6 Billion
Uniswap, a leading decentralized trading protocol, has been touted as underestimated by Matt Hougan, Chief Investment Officer at Bitwise. As per recent data from CoinMarketCap, the project boasts a market capitalization of $6.15 billion.
It is imperative to note that this valuation is deemed too low by Bitwise CIO Matt Hougan, who believes it would be equivalent to being the 400th largest financial services business in the world if Uniswap were a company. Hougan’s words of encouragement come at a time when there are mounting concerns about governance.
Despite being promoted as decentralized, a research-sharing platform has revealed worrisome findings on the governance model. It turns out that a small group of large UNI token holders, including early investors and the Uniswap Foundation, exert significant control over key decisions. On the other hand, users with smaller balances have little influence.
In addition to this, there is evidence suggesting delays in essential proposals or those that cater to larger holder interests. Furthermore, transparency issues exist due to some off-chain coordination being observed.
In light of these concerns and the project’s remarkable trading volume, it is crucial to acknowledge Uniswap’s undervalued status at $6 billion.
Source: cryptopotato.com
