Web3 & Crypto Asset Valuation

Eton delivers expert crypto valuations including Web3, blockchain, NFT and cryptocurrency asset valuations for tax compliance, financial reporting, and transactions.

Our Web3 & Crypto Asset Valuation Process

Day 1
Day 2
Day 8
Day 10
Forever
Information Collection
Valuation Modeling and Analysis
Draft Report Delivered; Client Review and Approval
Final Report Delivered
Audit Support

Our Web3 & Crypto Asset Valuation Advantage

As the Web3, blockchain and cryptocurrency industries continue to evolve rapidly, businesses and individuals holding digital assets face the critical challenge of ensuring accurate and compliant valuations for tax reporting and other regulatory purposes. Eton Venture Services specializes in crypto and blockchain asset valuations, providing clients with precise, impartial, and independent assessments of their digital assets’ fair market value (FMV) and fair value (FV) for tax compliance, financial reporting, and transactional purposes.
Trustworthy & Transparent

You can trust Eton’s expertise in applying various valuation techniques and deep understanding of accounting standards to Web3. We stay up to date with regulatory bodies and the latest case law, enabling us to provide accurate and defensible allocations, ensuring compliance with regulatory requirements and reducing the risk of financial restatements.

Tailored Approach

We have established best practices for valuation procedures specific to diverse portfolios. Our team takes the time to understand the intricacies associated with each engagement, ensuring a tailored approach that meets your unique needs.

Proven Track Record

Our experts understand the complexity of Web3 and crypto assets, and have a proven track record in helping clients gain confidence through superior valuation and advisory services. Our experience across various web3 valuation services powers our ability to offer comprehensive and trusted advisory services.

Unparalleled Expertise

Founded by securities lawyers from top law schools / law firms and staffed with finance professionals trained by the Big Four and other prominent financial services firms, Eton brings intellectual and quantitative rigor unmatched by others.

"As a former Gunderson lawyer, I co-founded Eton to bring the precision, efficiency, and the obsessive client service of corporate securities law to business valuation. I'm especially proud that our worldwide team of Big 4 trained CFAs has adopted that client service mantra wholeheartedly.

Our entire focus is on delivering audit-defensible, rigorous, and timely valuations without the inefficient back-and-forth of other firms. Client service is our religion. We always go the extra mile to overdeliver for every client."

Chris Walton, JD
President & CEO
Eton Venture Services
Previously at Gunderson Dettmer / Stanford Law

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FAQs

What are the key performance drivers of crypto asset valuation?

Crypto markets are driven by a variety of factors. Some of the key drivers of crypto market performance include market speculation, adoption by mainstream businesses and institutions, regulatory developments, and the overall level of interest in cryptocurrencies. In addition, the performance of individual cryptocurrencies is often closely tied to the broader market trends and the performance of the technology underlying them, such as the blockchain.

It is difficult to say with certainty whether there is a return correlation between cryptocurrencies and equities, as the relationship between these two asset classes is complex and can vary over time. In general, however, it is believed that the performance of cryptocurrencies and equities are not highly correlated, meaning that they do not tend to move in the same direction at the same time.

One reason for this lack of correlation is that cryptocurrencies and equities are driven by different factors. For example, the performance of equities is often closely tied to the overall health of the economy and the performance of individual companies, while the performance of cryptocurrencies is more closely tied to factors specific to the crypto market, such as adoption by mainstream businesses and regulatory developments.

Additionally, the relatively small size of the crypto market compared to the equity market means that the performance of cryptocurrencies is less likely to have a significant impact on the overall stock market. As a result, the two asset classes may not move in sync with each other. It is important to note, however, that the relationship between cryptocurrencies and equities can vary over time and may be influenced by a variety of factors, so it is always important to carefully consider the potential risks and rewards of investing in either asset class.

Crypto assets, such as cryptocurrencies, are digital assets that are based on blockchain technology and are typically decentralized, meaning they are not controlled by any central authority. They can be used as a means of exchange, a store of value, or a unit of account, similar to traditional currencies.

In the context of fair value accounting, crypto assets would be valued based on their current market price, which reflects the supply and demand for the asset in the market. The fair value of a crypto asset would be determined by its market price at the time of the valuation, and any changes in that price would be reflected in the asset’s value in the financial statements.

The fair value accounting model is based on the principle that the value of an asset should be measured based on the price it would fetch in an orderly transaction between market participants at the measurement date. This means that the value of a crypto asset in the fair value accounting model would be based on the current market price of the asset, rather than its historical cost or other intrinsic value.

It’s worth noting that the use of fair value accounting for crypto assets is not without controversy, and there is ongoing debate among accounting experts about the best way to value these assets. Some argue that the highly volatile and uncertain nature of the crypto asset market makes it difficult to accurately determine the fair value of these assets using traditional methods. As a result, alternative valuation approaches, such as the cost approach or the income approach, may be used in some cases.

The market approach is a method of valuing assets that involves looking at the prices at which similar assets have been bought and sold in the market. In the case of crypto-assets, the market approach can be used to determine the value of a particular crypto-asset by looking at the prices at which similar assets have been traded on exchanges or other marketplaces.

To use the market approach in the valuation of crypto-assets, an investor would first identify similar assets that have been recently traded on a marketplace. The investor would then look at the prices at which those assets were traded, and use that information to estimate the value of the asset being valued. This process may involve adjusting the prices of the comparable assets to account for any differences between them and the asset being valued, such as differences in the type or quantity of the assets.

The market approach is often considered to be a reliable method of valuing assets, as it is based on real-world market data. However, it is important to note that the market approach can be affected by a number of factors, such as the availability of comparable assets and the overall state of the market. As a result, investors should carefully consider all relevant information when using the market approach to value crypto-assets.

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