Navigating Token Performance: The Crucial Role of Investor Relations

Welcome to our institutional newsletter. This week, we discuss the hidden driver of token performance and the maturing of crypto markets. Poor investor relations can lead to the downfall of a protocol, as seen in the case of Ranger Finance. Institutional-grade investor relations is the missing piece in token markets, and it's essential for protocols to provide regular investor calls with forward guidance. Research shows that firms that consistently meet or beat their guidance enjoy a stock price premium. In crypto, protocols like Maple Finance and EtherFi are leading the way in providing guidance and delivering on their promises. However, guidance without delivery is just marketing, and investor relations in crypto requires more than just a dashboard. Separating custody from execution is also becoming increasingly important in crypto markets, with institutions like Wintermute and Nomura's digital asset arm Laser Digital already operating this way. This shift signals a broader evolution in digital asset market structure, making it more efficient and less risky for institutions.