Welcome to Crypto Long & Short, our institutional newsletter. This week, we examine the crucial role of investor relations in token performance. Poor investor relations can lead to significant losses, as seen in the recent liquidation of a protocol's treasury despite a 14x oversubscribed ICO.
Research highlights the value of forward guidance in providing a measurable stock price premium and building management credibility. In crypto, protocols like Maple Finance and EtherFi are setting a high standard for investor relations by providing regular updates and guidance. We also discuss how institutional capital is shifting in crypto markets, with major trading firms separating custody from execution, and how this change signals a broader evolution in digital asset market structure. The infrastructure is catching up, with firms using collateral held in regulated bank custody to access exchange liquidity, reducing capital inefficiency and opportunity costs.