Introducing The Token Transparency Framework With Dan Smith, Louis T and Felipe Montealegre
Empire
00:00
Tokens vs. Traditional Assets: Understanding Risk Premiums
This chapter explores the significant differences in cost of capital and risk premiums between tokens and traditional equity assets, revealing the higher token risk premium of 20% compared to the typical 5% for equities. It discusses the structural challenges faced by token projects, emphasizing the impact of market conditions on investor perceptions and valuations. Furthermore, it highlights the shift towards transparency and revenue-based investment strategies in the evolving cryptocurrency landscape.
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