Crypto Long & Short: Uncovering the Hidden Driver of Token Performance

Welcome to our institutional newsletter, Crypto Long & Short. This week, we discuss the missing piece in token markets: institutional-grade investor relations. By Jordan Brewer, investment analyst at Runa Digital Assets, we learn that poor investor relations can lead to the downfall of a protocol, as seen in the case of Ranger Finance. Research shows that providing forward guidance and consistently meeting or beating it can lead to a measurable stock price premium. In crypto, protocols like Maple Finance and EtherFi are leading the way in providing regular investor calls and guidance, resulting in rewarded token valuations. However, guidance without delivery is just marketing, and investor relations in crypto require accountability and credibility. In another article, Martin Burgherr, chief clients officer at Sygnum Bank, discusses how institutions are separating custody from execution in crypto, signaling a significant shift in digital asset market structure. This change allows for more efficient use of capital, reducing costs and increasing returns. The infrastructure is being built by institutions, and the separation of custody and execution is becoming more widespread, making institutional participation possible at scale.