Welcome to our institutional newsletter, Crypto Long & Short. This week, we examine the crucial aspect of token performance: investor relations. Jordan Brewer, investment analyst at Runa Digital Assets, discusses the significance of regular investor calls and forward guidance in building credibility and trust with public market investors.
He highlights the success of protocols like Maple Finance and EtherFi in providing transparent guidance and delivering on their promises, resulting in increased token valuations. Meanwhile, Martin Burgherr, chief clients officer at Sygnum Bank, sheds light on the evolving digital asset market structure, where institutions are separating custody from execution, reducing capital inefficiency and counterparty risk. This shift is driven by the need for more efficient and lower-risk investment strategies, with firms like Wintermute and Nomura's Laser Digital already adopting this approach.
As the crypto market matures, it is essential for protocols to prioritize investor relations and transparency to attract and retain public market investors.