Crypto Long & Short: The Secret to Token Success

Welcome to Crypto Long & Short, our institutional newsletter. This week, we examine the key to token performance: guide, deliver, repeat. By Jordan Brewer, investment analyst at Runa Digital Assets, and Martin Burgherr, chief clients officer at Sygnum Bank. In the world of token markets, a crucial piece is missing: institutional-grade investor relations. Protocols are now seeking public market investors for more durable capital, but a key part of investor relations is lacking. A regular investor call where management walks through forward guidance is essential, as seen in Maple Finance and EtherFi. The value of forward guidance lies in its accuracy, with research showing that firms meeting or beating their guidance enjoy a measurable stock price premium. Crypto is beginning to produce its own version of this dynamic, with Maple and EtherFi delivering on their guidance and being rewarded by the market. However, guidance without delivery is just marketing, and investor relations in crypto doesn't end with a dashboard, but starts with it. Guidance and accountability are at the heart of credibility for protocol teams, building conviction in public investors. Meanwhile, institutions are separating custody from execution in crypto, with major trading firms keeping assets separate from where they execute trades. This shift signals a broader evolution in digital asset market structure, with the infrastructure catching up to support this change. The separation of custody and execution is not theoretical, with firms like Wintermute and Nomura's Laser Digital already operating this way. As the market structure matures, institutional participation is becoming possible at scale, with 73% of institutional investors planning to increase their digital asset allocations this year.