Empire

Introducing The Token Transparency Framework With Dan Smith, Louis T and Felipe Montealegre

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Jun 18, 2025
Join Dan Smith, Head of Data at Blockworks Research, Felipe Montealegre, CIO of Theia Research, and Louis T, Investment Partner at L1D, as they unveil the groundbreaking Token Transparency Framework. They dive into how this framework aims to enhance trust in the crypto market, discussing lemon markets and the risk premiums of tokens versus traditional assets. Insightful anecdotes, including token horror stories and real-world implications, highlight the pressing need for transparency and accountability in the ever-evolving crypto landscape.
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INSIGHT

Token Market as Lemon Market

  • The token market suffers from a "lemon market" problem due to asymmetric information.
  • Good projects avoid launching tokens because of steep discounts caused by uncertainty and lack of transparency.
INSIGHT

High Token Risk Premium

  • Tokens carry a token risk premium of about 20%, far higher than equities' 5% premium.
  • This leads to valuation discounts close to 80% for tokens compared to analogous equities.
ANECDOTE

Token Horror Stories

  • A $40 million FTV token was rug pulled when the team took IP and cash flows for themselves.
  • Uniswap sent $90 million in fees to equity holders, while token holders waited for a fee switch.
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