Valuation methodologies for digital assets: A strategic guide for VCs and crypto funds

Vietnam is already home to an estimated 17 million crypto users and over $100 billion in annual trading volume, most of it, until now, routed through offshore platforms. That is about to change: the government has begun bringing this activity onshore, and funds that do not adapt their valuation practices risk being caught off guard by the shift.

1. Vietnam’s digital asset market: an evolving landscape

In 2025, the government signaled a shift toward onshore regulation, initiating plans for a pilot framework to bring crypto trading within a licensed, supervised domestic market. The new Law on Digital Technology Industry requires crypto platforms to secure local licenses and offer direct Vietnamese Dong transactions by 1 January 2026, while the NDAChain national blockchain platform was also introduced to facilitate secure transactions.

As of Q1 2026, the Ministry of Finance's review identified five companies, affiliates of Techcombank, VPBank, Sacombank, VIX Securities, and Sun Group, as having cleared an initial qualification round, with VPBank and Sun Group confirming formal license applications.

What this means for VCs and crypto funds: as Vietnam's digital asset market moves onshore, portfolio companies and fund positions will increasingly need valuations that hold up to regulatory and audit scrutiny, not just informal, market-based estimates.

Digital assets have developed into a multifaceted ecosystem, encompassing cryptocurrencies, utility tokens, security tokens, non-fungible tokens (NFTs), decentralized finance (DeFi) instruments, and stablecoins. For VC firms and crypto funds, precise valuation is imperative for informed investment decisions, effective portfolio management, and regulatory compliance. In contrast to traditional assets, digital assets introduce distinct challenges, including heightened volatility, the complexity of tokenomics, and evolving regulatory frameworks.

2. Types of digital assets and their characteristics

3. Valuation methodologies by asset type

3.1. Cryptocurrencies

• Market-based: VWAP (volume-weighted average price) across major exchanges.
• Network metrics: Metcalfe's Law (the value created by a network is proportional to the square of the number of connected users), NVT Ratio (Network Value to Transactions, market cap divided by daily volume transacted).
• QTM application:

𝑀𝑉 = 𝑃𝑄 (M = Money supply, V = Velocity of money, P = price level, Q = transaction volume)

High velocity reduces token value unless demand grows proportionally.

3.2. Utility tokens

• Income approach: Discounted cash flow of platform fees or staking rewards.
• Tokenomics review: Vesting schedules, burn mechanisms.
• QTM lens: Lower velocity (due to staking) supports higher valuations.

3.3. Security tokens

• Comparable analysis: Benchmark against similar equity or debt instruments.
• Income approach: Dividend or coupon projections discounted to present value.
• Regulatory risk premium: Adjust for compliance costs and jurisdictional risk.

3.4. NFTs

• Market-based: Floor price analysis across marketplaces.
• Qualitative factors: Creator reputation, rarity, community engagement.
• Comparable sales: Historical auction data for similar assets.

3.5. DeFi tokens

• Network value metrics: TVL (Total Value Locked), protocol revenue multiples.
• Income approach: Forecast fee streams from lending or liquidity pools.
• Risk adjustment: Smart contract audits and governance decentralization.

3.6. Stablecoins

Stablecoins aim for price stability, so valuation focuses on risk assessment and sustainability rather than speculative upside.

Types:

• Fiat-collateralized: Backed by reserves (e.g., USDC, USDT).
• Crypto-collateralized: Overcollateralized with crypto assets (e.g., DAI).
• Algorithmic: Maintains peg via supply adjustments (e.g., former UST model).

Key valuation metrics:

QTM application for algorithmic models:

𝑀𝑉 = 𝑃𝑄

• If velocity spikes or demand drops, supply must adjust to maintain peg (P ≈ 1).
• Risk premium: Algorithmic models require higher discount rates due to historical failures (e.g., Terra collapse).

4. Strategic considerations for funds

• Regulatory risk: Stablecoins face intense scrutiny; valuation should factor compliance costs.
• Revenue streams: Some issuers earn yield on reserves, DCF applies here.
• Stress testing: Model collateral volatility and redemption surges.

5. Best practices checklist

6. Conclusion

The valuation of digital assets necessitates the integration of established financial principles with blockchain-specific metrics and economic frameworks, such as the Quantity Theory of Money (QTM). Stablecoins introduce additional complexity, as their assessment centers on the maintenance of price pegs, the sufficiency of reserve backing, and the management of systemic risk. By customizing valuation approaches to suit distinct asset categories and appropriately accounting for inherent risks, venture capitalists and cryptocurrency investment funds are better positioned to make prudent investment decisions and realize sustained value within this dynamic and rapidly evolving sector.

How can we help?

Contact our Financial Advisory team to assess your digital asset portfolio and ensure your valuation approach is aligned with Vietnam's evolving regulatory framework.