Can crypto treasuries end the VC dump cycle? – Ethena founder explains…

Key Points

1. Crypto treasuries could alleviate the supply overhang from VC token unlocks, which often leads to price drops and retail investor losses.

2. VC-backed projects have been criticized and avoided by the crypto community, leading to a shift towards memecoins.

3. Most altcoins are considered 'shitcoins' or 'vaporware', but traditional finance (TradFi) may support crypto projects with real revenue potential.

4. Legacy firms adopting crypto treasuries have seen stock prices rise more than the underlying crypto assets, but high debt leverage poses liquidation risks.

5. Galaxy Research's Alex Thorn downplays debt concerns, noting most debts will mature by 2028, but acknowledges the risk remains.