Less Noise, More Signal Market Strategist: The dawn of junk equities is now
May 26, 2025
Byron Gilliam, a market strategist at Blockworks with 25 years of international equities trading experience, joins Pascal Hugli to discuss the shifting landscape of cryptocurrency. They compare today's crypto market to the rise of junk bonds, addressing the democratization of capital versus commercialization risks. The conversation delves into the complexities of valuing crypto assets, focusing on social vs. legal claims, and the evolving protocols that shape their future. They also touch on the allure of speculation and the need for robust shareholder rights in the crypto realm.
AI Snips
Chapters
Transcript
Episode notes
Crypto Ball Mirrors Junk Bonds
- The crypto ball before Trump's inauguration echoed the 1980s Predator's Ball symbolizing a new phase in capitalism and markets.
- Similar to junk bonds, crypto holds promise but also risks becoming a symbol of cynical, anything-goes capitalism.
Crypto Enables Tokenized Bribery
- Crypto allows tokenized emoluments, a new way to bribe political figures, circumventing traditional contribution rules.
- Such token approaches enable foreign money flows into U.S. politics, exemplified by the Trump token and World Liberty Financial.
Social Claims vs Legal Claims
- Crypto tokens lack legal claims on assets or earnings unlike traditional equities, relying instead on social claims enforced by community trust.
- A protocol's value is reflected by its ability to return revenue to token holders, evidencing these social claims.