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EDG DAO Financial Bulletin: First Fortnight of March

Provides the community a fair idea about the performance of EDG as compared to the market as well as the peers of EDG.

Advait Rane, Vismay Joshi

• 4 min read
EDG DAO Financial Bulletin: First Fortnight of March

(** the figures mentioned in this report are our personal opinions, so please don’t consider this as investment advice)

Part 1: EDG Performance

  • During the last fortnight, the overall performance of EDG was Bearish, with a couple of upward spikes in the prices. During the first week, the price showed a downward trend, while in the second week, the price chart showed a sideways trend.
  • In this fortnight, the highest price of EDG was approximately 0.0039 USD around 02/03/22.
  • The first spike was around 3/3/22, with prices going up slightly from 0.0034 USD to 0.0038 USD and 24h volume during this period was around 530K USD, which was much higher compared to other days. The upward price trend with increased volumes shows buying activity.
  • The second upward spike, after a brief downward movement on previous days, was observed around 8/3/22, when the price went from 0.003 to 0.0035, with no significant change in volumes.
  • Based on the financial models, we see that the returns are expected to be around **5-8% over the next period.

Part 2: Comparative Analysis

  • Period = 2 weeks (1/3/2022 to 15/3/2022)
  • Beta = Volatility Factor
  • Rf = Risk-free return (Approximately 4%) (Government Bonds)
  • Rm = Return from Equity market (Approximately 10%)
  • Beta = 0.709 (Beta is less than 1 which shows EDG was less volatile than BTC)
  • The approximate Return over this period from EDG was about -19.94%
  • The approximate Return over this period from BTC was about -8.23%
  • **Considering the above data, the expected returns from EDG can be expected to be about 8.26% Approximately over the next periods.
  • Beta = 0.304 (Beta is less than 1 which shows EDG was less volatile as compared to DOT over the considered Period)
  • The approximate Return over this period from EDG was about -19.94%
  • The approximate Return over this period from DOT was about -6.63%
  • **Considering the above data, the expected returns from EDG can be expected to be about 5.83% Approximately over the next periods.
  • Beta = 0.6 (Beta is less than 1 which shows EDG was less volatile as compared to KSM over the considered Period)
  • The approximate Return over this period from EDG was about -19.94%
  • The approximate Return over this period from KSM was about -7.79%
  • **Considering the above data, the expected returns from EDG can be expected to be about 7.79% Approximately over the next periods.
  • Beta = 0.5 (Beta is less than 1 which shows EDG was less volatile as compared to ETH over the considered Period
  • The approximate Return over this period from EDG was about -19.94%
  • The approximate Return over this period from ETH was about -11.23%
  • **Considering the above data, the expected returns. from EDG can be expected to be about 7.55% Approximately over the next periods.
  • Beta = 0.7 (Beta is Less than 1 which shows EDG was less volatile as compared to AVAX over the considered Period)
  • The approximate Return over this period from EDG was about -19.94%
  • The approximate Return over this period from AVAX was about -18.52%
  • **Considering the above data, the expected returns from EDG can be expected to be about 8.71% Approximately over the next periods.
  • Beta = 0.8 (Beta is less than 1 which shows EDG was less volatile as compared to ALGO over the considered Period)
  • The approximate Return over this period from EDG was about - 19.94%
  • The approximate Return over this period from ALGO was about -18.61%
  • **Considering the above data, the expected returns from EDG can be expected to be about 9% Approximately over the next periods.

Conclusion:

Over the period considered for analysis, the EDG token was less volatile as compared to KSM, AVAX, DOT, ETH, ALGO, and BTC. Based on the financial models, the returns over the next period can be expected to be positive and around **5 - 8%

Part 3: Treasury Spendings

Treasury Proposals

  • Treasury Proposal #51 - Agency Funding Feb '22 - 25,000,000 EDG
  • Treasury Proposal #52 - Pizza Airdrop - 600,000 EDG

Treasury Tips:

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