How to Value Digital Tokens: A 5-Step Fair Value Framework – A BlueVal’s Publication for CFA Institute

Blueval contributes to the ongoing development of valuation practices for digital assets through the publication of “How to Value Digital Tokens: A 5-Step Fair Value Framework”, co-authored by Antonella Puca, CPA/ABV, CFA – Partner at BlueVal – and Mark L. Zyla, CPA, CFA. The article provides financial analysts with a structured approach to applying ASC 820 and IFRS 13 to an asset class that continues to expand but lacks standardized valuation methodologies. The framework addresses the challenges posed by cryptocurrencies, stable coins, NFTs, and tokenized securities, focusing on market fragmentation, transparency issues, and the absence of consistent ownership and governance structures.

The article outlines a five-step process that begins with identifying the token’s technical features and principal market, determining an appropriate exit price and assessing whether discounts for illiquidity are applicable.

This article reflects BlueVal’s commitment to advancing fair value measurement practices in emerging and complex asset classes.

How to Value Digital Tokens: A 5-Step Fair Value Framework - CFA Institute Enterprising Investor