Token Launch Valuation

Definition ∞ Token Launch Valuation refers to the process of determining the monetary worth or market capitalization of a new cryptocurrency token at its initial release. This assessment considers various factors, including the project’s technology, team, market demand, and the token’s total supply. It provides an initial benchmark for the asset’s market standing.
Context ∞ Token launch valuation is a critical metric for both project developers and early investors, frequently discussed in crypto news during initial coin offerings or public sales. Analysts often scrutinize these valuations to gauge potential investment returns and market sentiment. The accuracy and justification of these valuations are often subjects of considerable debate within the digital asset community.