Multicoin Capital Projects Jito Token Value to Triple to $6.80
In 2023 and 2024, several Solana startups issued native tokens to reward users and investors. While airdrops gained attention for their profitability, utility took a backseat amidst regulatory scrutiny in the US. A shift towards a friendlier regulatory environment is prompting interest in the long-term value of these tokens.
Key points include:
- Multicoin Capital's asset report values JTO, the native token of Jito, at $6.80, suggesting significant upside from its current price.
- 93% of Solana's stake operates on the Jito-Solana client, benefiting from off-chain blockspace auctions that enhance validator returns.
- Jito accounted for approximately 56% of Solana's total revenue in February through auction tips.
- Concerns exist about the disconnect between Jito’s revenue growth and JTO token performance, as no direct revenue distribution model is currently in place.
- The Jito Foundation manages Jito’s stake pool but distributing revenue to token holders could classify JTO as a security.
- Changing market dynamics may influence future revenue distribution strategies.