 ▲ Virtual asset trading |
Capital flows in the virtual asset market are rapidly shifting toward stocks of related listed companies due to deteriorating profitability and structural flaws in newly listed tokens.
According to cryptocurrency media outlet Cointelegraph on February 22 (local time), Andrei Grachev, co-founder of crypto market maker DWF Labs, recently analyzed that investors are clearly favoring shares of crypto-related companies over direct token investments. Grachev explained that capital is rotating out of the token market and into the stock market, and that this shift is becoming a new standard in the market.
Grachev criticized the new token listing model as completely broken. He pointed out that tokens listed with a small circulating supply but an abnormally high fully diluted valuation have repeatedly plunged in price shortly after listing, eroding investor trust. Binance’s research team also noted in a recent report that top market-cap tokens are struggling to secure long-term price momentum due to high diluted valuations.
In contrast, shares of Strategy and Bitcoin (BTC) mining companies are attracting capital by delivering overwhelmingly higher returns compared to tokens. Instead of opaque token ecosystems, investors are seeking leveraged exposure to Bitcoin’s upside through publicly listed companies that provide transparent disclosures and operate under regulatory oversight. “Investors are no longer fixated on high-risk new tokens and are turning their attention to proven listed equities,” Grachev said.
Grachev predicted that the concentration of capital in the stock market will likely continue for the time being unless fundamental innovation occurs in the token listing model. The virtual asset market has entered a stage that demands tangible value and institutional stability rather than mere price bubbles. Investors are restructuring their portfolios, steering clear of tokens vulnerable to large post-listing unlocks and focusing instead on assets backed by solid corporate fundamentals.
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