Uncovering the Key Driver of Token Performance in Crypto Markets

Welcome to the Crypto Long & Short institutional newsletter. This week, we delve into the missing piece in token markets: professional investor relations. Jordan Brewer, an investment analyst at Runa Digital Assets, discusses how poor investor relations can lead to the downfall of a protocol, even after a successful ICO. He highlights the importance of regular investor calls, where management provides forward guidance, citing examples from Maple Finance and EtherFi. Research shows that firms that consistently meet or beat their guidance enjoy a stock price premium, and this dynamic is beginning to emerge in crypto markets. Meanwhile, Martin Burgherr, chief clients officer at Sygnum Bank, examines the shift in how institutional capital moves through crypto markets, with major trading firms separating custody from execution. This change signals a broader evolution in digital asset market structure, making it more efficient and lower-risk for institutions. The infrastructure is catching up, with firms using collateral held in regulated bank custody while maintaining access to exchange liquidity. As the market matures, institutional participation is becoming more possible at scale, with 73% of institutional investors planning to increase their digital asset allocations this year.