+1%

est. 2Y upside i

Series A

Rank

#3723

Sector

Cryptocurrency/Blockchain

Est. Liquidity

~6Y

Data Quality

Data: Low

This equity opportunity is highly risky.

Last updated: March 10, 2026

Bull (10%)+400%

Significant advancements in Web3 adoption and successful implementation of the HNS coin supply reduction (by ~56% in August 2025) drive a surge in protocol usage and HNS value. The company's valuation reaches $19.5M, allowing common equity holders to realize a return of $9.5M after $10M in liquidation preferences are paid.

Base (30%)+50%

Handshake maintains its niche in decentralized naming, seeing modest growth in HNS coin adoption. The company's valuation reaches $5.85M, but common equity holders still receive $0 due to the $10M liquidation preference held by earlier investors.

Bear (60%)-90%

Continued low adoption of the Handshake protocol and strong competition from well-funded rivals like Unstoppable Domains ($1B valuation) and Space ID (~$55M market cap) lead to a further decline in HNS coin value. The company's valuation falls to $0.39M, resulting in common equity being completely wiped out due to $10M in liquidation preferences.

Est. time to liquidity~6.0 years

Preference Stack Risk

severe

Investors hold $10M in liquidation preferences. If the company exits at its estimated current valuation of $3.9M, common equity holders would receive $0.

Dilution Risk

high

Given the low current valuation relative to funding, future funding rounds would likely be dilutive for common equity holders, potentially at lower valuations.

Secondary Liquidity

none

There is no indication of active secondary markets or tender offers for this early-stage company's equity.

Questions to Ask at the Interview

Strategic questions based on Handshake's data — designed to show you've done your homework.

  • 1

    “Given the current HNS market cap is significantly below the $10M raised, how does the company plan to address the liquidation preference for common equity holders in a future liquidity event?”

  • 2

    “Unstoppable Domains has achieved a $1B valuation. What specific strategies is Handshake implementing to significantly increase HNS adoption and compete more effectively against such well-funded rivals?”

  • 3

    “With a team of only ~2 employees, what is the long-term vision for scaling development, marketing, and community engagement to drive protocol growth and achieve a meaningful market share in decentralized DNS?”

Community

Valuation Sentiment

Our model estimates +1% upside. What do you think?

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Disclaimer: This analysis is AI-generated and does not constitute financial or career advice. Always conduct your own due diligence.