In my past life I was a leading research analyst on tech stocks
As crypto start entering mainstream, it’s immediately clear that tokens with revenue, profitability and cash flow will outperform this cycle by a wide margin, and liquid firms are already comping projects on a variety of metrics similar to tradfi research
If you are not familiar with this game, here are 3 ideas to get your token re-rated in this market aka get a higher multiple on your business, I haven’t seen ANY projects doing this last one
This especially applies if have some cash on hand but your token is not performing ‼️
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1)
consider acquiring high quality teams and projects, or initiate expansion to new categories to catchup with high momentum narratives, to reflect a larger ambition.
This will directly force analysts to start modeling a larger future TAM and re-rate how they view your business
Ie. Nvidia did this in 2016 when it announced it was focusing on not just gaming, but AI data center chips. P/S multiples quadrupled if not more
We are seeing some version of this coming thru currently with @Grammarly @facebook @pumpdotfun @monad_xyz (pre-token but still)
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2) Initiate dividend or token buyback
Market will start treating it less like a high-risk tech growth token and more like a cash-flowing blue chip, will also attract more yield oriented investor and long term oriented funds
Apple did this initially and have almost doubled its P/E ratio
Ie @tn_pendle @jito_sol @ethena_labs are introducing or increasing protocol revenue distribution to stackers
We are seeing that with new token launches like pump and some upcoming tokens as well
3) set really long term goals, like really really long
Salesforce began publicly anchoring to a 20%+ long-term CAGR) for revenue and other metrics around 2017–2018, making this a highly simple but impressive goal discussed amongst funds and analysts.
And for ongoing updates, they continue to reiterate 20%+ revenue CAGR, emphasizing high retention, cross-sell, and strong FCF conversion, occasionally even raising those targets along the way.
This is what we need to do as an industry to attract more institutional capital imo aside from etfs
“By 2027, 60%+ of protocol earnings will flow to tokenholders via staking rewards, fee rebates, or governance-controlled buyback”
“We aim to grow protocol revenue at a 30% CAGR over the next 5 years, targeting $200M annualized revenue by 2030, driven by new integrations, ecosystem expansion, and token-aligned usage”
This is serious commitment and I haven’t seen any project do thjs, but this sets you apart from 99% of the projects. None of the defi projects are doing this
Lastly, I think the most important thing to note here is that liquid funds used to tout fundamentals, but in past cycles crypto was primarily retail speculation. Until now in this cycle, the top and bottom line is actually resonating and attracting external capital, just look like the top projects that have run up this year PRIOR to btc ath this week
I’m excited to this phase for crypto, onwards.
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