How Is a ‘Margin of Safety’ Defined in Crypto Valuation?

The margin of safety is the difference between an asset's estimated intrinsic value and its current market price. It is the buffer that protects an investor from errors in valuation or adverse market events.

In crypto, due to high volatility and valuation uncertainty, a larger margin of safety is required. It is defined as the discount to the intrinsic value at which an investor is willing to purchase the token.