Amidst the recent success of the Cricle IPO, and the continued slow grind down in alts, the attention is shifting from actual token markets towards crypto stocks. CRCL is up ~115% over the last week, and nearly 8x since the IPO – a trend which was only seen in token markets has now become commonplace in crypto equities.
But this divergence marks a deeper shift in sentiment: tokens are being re-evaluated in light of poor fundamentals, shady tokenomics, and repeated cycles of retail destruction. Meanwhile, crypto-aligned equities – anchored in audited revenues and enforceable ownership rights are attracting attention not just from institutions but also from disillusioned crypto-natives.
What’s emerging is a new thesis in which I refer to as “The IPO Narrative” – where value flows not to the token, but to the equity behind the protocol. Fueled by regulatory clarity and a desire for structure and transparency, the market is beginning to reward companies building in crypto more than the tokens they once used to bootstrap growth.
The Token Hangover
After what seems to have been a lackluster cycle for many, token holders are realizing the uncomfortable reality that most tokens don’t actually represent anything. They don’t grant ownership, don’t pay dividends, and don’t accrue value from the protocols they govern. The whole idea that investing in a protocol (token) with the assumption that one day that protocol would become successful, thus return value reflective of the token price has been the very façade that has kept much of this industry afloat.
But there is reason for my cynicism. Retail has been lured in by promises of decentralizat
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