Momentum Finance ($MMT) Public Fund Analysis: Buildpad's $250 Million Valuation Explained

TL;DR

Momentum Finance, the leading DEX in the Sui ecosystem, will hold a community public offering on the Buildpad platform from October 22nd to 28th, raising $4.5 million. Tier 1 participants are valued at $250 million in FDV, while tier 2 participants are valued at $350 million. The project boasts strong fundamentals, with a TVL of $456 million, cumulative trading volume of $22 billion, and 2.1 million users. Based on on-chain data and comparative analysis, the $250 million valuation is underestimated, with potential for 2-3x growth.

Core Analysis

Public Offering Details

Token Price and Valuation :

• Primary Price : $0.25/MMT ($250 million FDV)
• Secondary Price : $0.35/MMT ($350 million FDV)
• Total funds raised : $4.5 million (1.8% of the total supply of 1 billion)
• Token unlocking : 100% unlocking at TGE, no lock-up period

Participation requirements :

• Level 1 qualification : Stake ≥ $3,000 USD of LP tokens through Buildpad HODL until the October 25 snapshot, or participate in Wagmi activities
• Secondary qualification : Complete KYC verification to participate
• Investment limit : $50-2,000 for standard users; up to $20,000 for first-level users
• Supported assets : BNB, SUI, USD1 stablecoin

Time schedule :

• KYC registration : October 22-25
• Review period : Complete qualification verification before October 27
• Investment window : October 27-28 (24 hours)
• Token distribution : Completed before October 31st, TGE will be launched afterwards

Valuation Analysis

Momentum’s valuation of $250 million is reasonably low among the Sui DeFi protocols. A comparative analysis shows:

Factors supporting the reasonableness of valuation :

• Market dominance : 43% of Sui DEX trading volume, ranking third globally
• Revenue model : Daily revenue of $21,500, annualized $8.16 million, P/S ratio of 30x (DeFi reasonable range of 20-50x)
• User growth : 2.1 million cumulative users, 50,000+ daily active users, 7.5% weekly growth
• Institutional Background : Received $14.5 million in investment from 29 top institutions including Coinbase Ventures and Jump Crypto

On-chain fundamental data

TVL performance :

• Current TVL : $456 million, up 8% week-over-week
• Growth trend : Steadily increasing from $421 million on October 12
• Market share : 24% of Sui Ecosystem’s total TVL, ranking third

Trading volume data :

• 7-day trading volume : $3.35 billion, accounting for 43% of Sui DEX's total volume
• Peak daily trading volume : $747 million on October 14
• Cumulative trading volume : $22.9 billion since launch in March

Agreement income :

• Daily income : $21,500 (5% of the agreement fee)
• 7-day revenue : $215,000, up 2% week-over-week
• Annualized revenue : $8.16 million, with strong cost sustainability

Liquidity Pool Performance : The top five pools performed exceptionally well, with the SUI-USDC pool boasting a TVL of approximately $150 million, a seven-day trading volume of $1.2 billion, and an APR of 120%. Overall pool utilization rates ranged from 55% to 80%, demonstrating healthy liquidity.

Community sentiment analysis

Investor enthusiasm : The community showed great enthusiasm for this public offering, which was mainly reflected in:

• Active discussion on participation mechanism : users actively share strategy guides for obtaining allocation quota
• Active content creation : UGC activities attract a large amount of original content, and users add the "Ⓜ️Ⓜ️T" logo to their X profile.
• HODL campaign successful : $277 million in liquidity locked through staking before pre-sale

Key opinion leaders (KOLs ) are generally optimistic about the public offering, arguing that the $250 million valuation represents a significant discount to the pre-market FDV of $800 million. Analysts emphasize Momentum's infrastructure advantages and community-driven distribution mechanism.

Controversies and Risks : No major controversies or red flags have been identified. The project has passed the Movebit security audit and has received support from top institutions, with no record of hacking or internal disputes.

Platform credibility assessment

Buidlpad historical performance :

• Success rate : Complete 4 IDOs by 2025, with 100% positive returns
• Average return : Current ROI 2.28 times, highest ROI 9.99 times
• Total raised : $29.75 million, with over $3.3 billion in user commitments
• Exchange listing : All projects have been successfully listed on mainstream exchanges such as Upbit

Platform advantages :

• Founder Background : Founded by former Binance executive Erick Zhang, who has extensive launchpad experience
• Compliance mechanism : strict KYC and anti-sybil measures to ensure fair distribution
• Community-oriented : Emphasizes retail user participation and counters the VC-dominated token distribution model

Momentum's valuation of $250 million is relatively low compared to other projects in Buildpad's history (usually $250-450 million FDV). Considering its position as Sui's leading DEX and its strong fundamentals, the valuation is attractive.

in conclusion

Based on a multi-dimensional analysis, Momentum Finance offers significant investment value at a $250 million valuation. Its fundamentals comprehensively surpass those of similar protocols: $456 million in TVL, 43% market share, and 2.1 million users demonstrate its market leadership. The successful track record and strict compliance mechanisms of the Buildpad platform ensure investment security. Considering the continued growth of the Sui ecosystem and Momentum's technological strength, the project is expected to see a 2-3x increase in value after its TGE.