Crypto Assets and the Bidirectional Choice of Listed Companies

After Trump is elected President of the United States in 2024, the Crypto Assets industry will usher in a series of favorable policies. Many listed companies will begin to follow the example of Strategy Company and become hoarders of Bitcoin and other Crypto Assets. However, different Crypto Assets have varying characteristics, and listed companies need to select suitable targets based on their own needs. At the same time, Crypto Assets project parties also hope to attract high-quality listed companies to become strategic partners. This article will analyze the selection logic of both parties from the dual perspective of listed companies and project parties.

1. A Public Company’s Perspective on Crypto Assets

1.1 Covering financing costs: PoS public chain tokens are superior to PoW public chain tokens

For publicly listed companies that rely on debt financing, holding PoS public chain governance tokens and staking them can yield an annualized return of 2%-7%, which helps cover financing costs. In contrast, assets of PoW public chains like BTC are difficult to achieve "money makes money."

How listed companies choose PoS public chain tokens 1.2

The demands of different listed companies vary, mainly divided into three categories:

) Pursuing high staking returns: SOL staking yield is high, and the public chain transaction volume is stable. 2) Pursuing value growth: HYPE transaction fee buyback mechanism, coin price has achieved 10 times growth. 3) Pursuing ecological layout: ETH has a high degree of decentralization, and Layer 2 development difficulty is low.

2. Crypto Assets Project Perspective on Listed Companies

2.1 Hoarding coin merchants are stabilizers of the public chain ecosystem.

The "buy and hold" principle of hoarding coins helps to reduce the volatility of Crypto Assets. After continuously buying BTC, the volatility of BTC has significantly decreased over the past two years.

2.2 Crypto Assets project parties choose to reject listed companies

1. Insurance companies/holding platforms are suitable for PoW public chain coin hoarding merchants.
2. Internet/Cloud Computing companies are suitable for PoS public chain coin holders
3. Software security companies suitable for doing Infra projects with coin hoarding.

3. Thoughts on Decentralization

The Crypto Assets ecosystem presents a pattern of coexistence of "decentralization", "multi-centralization", and "centralization:"

• BTC: Highly decentralized, but Strategy may become a "quasi-central"
• ETH: Decentralized, listed companies hoarding coins may become the "third pole"
• SOL: Tends towards "single centralization", making it difficult for listed companies to play a larger role.

In the future, the project governance structure will continue to evolve. Public companies and project parties need to clarify their respective roles and manage expectations to establish a long-lasting win-win cooperation mechanism.