Welcome to Crypto Long & Short, our institutional newsletter. This week, we delve into the world of token performance and the crucial role of investor relations.
By Jordan Brewer, investment analyst at Runa Digital Assets, we examine the consequences of poor investor relations, as seen in the case of Ranger Finance's rapid downfall despite a 14x oversubscribed ICO. The key to success lies in adopting a regular investor call where management provides forward guidance, as demonstrated by teams at Maple Finance and EtherFi. Research highlights the value of accurate forward guidance in rewarding token valuations and building trust with management teams. We also explore how crypto is developing its own version of this dynamic, with examples from Maple and EtherFi.
Furthermore, Martin Burgherr, chief clients officer at Sygnum Bank, discusses the significant shift in how institutional capital moves through crypto markets, with major trading firms separating custody from execution. This evolution signals a broader change in digital asset market structure, allowing for greater capital efficiency and reduced counterparty risk.
The infrastructure is being built by institutions, enabling collateral to be held in regulated bank custody while maintaining access to exchange liquidity. As the market matures, we see a familiar pattern emerging, with traditional finance solutions being applied to crypto. According to a recent survey, 73% of institutional investors plan to increase their digital asset allocations this year, driving the need for scalable infrastructure. We also highlight the week's headlines, including the growth of bridges between traditional finance and crypto, and the impact of smart contract exploits on the market.
Our Chart of the Week features Collector Crypt's revenue recovery and token re-rating, with the CEO's revenue-funded buyback program providing a mechanical bid under CARDS throughout the recovery.