The stock market listings of major crypto players like Coinbase and Circle raise questions about the role of their native tokens in the face of potentially competing equities. The case of Venice.AI and its VVV token highlighted a fundamental issue: the ambiguity between tokens, which capture a portion of a protocol’s revenue, and stocks, which represent an actual share of the company. According to Delphi Digital analysts, this confusion allows some projects to overvalue their tokens well beyond coherent levels relative to the listed company’s valuation. Rob Hadick from venture capital firm Dragonfly notably pointed out that token holders depend on the company’s goodwill for any potential buyback, without an automatic mechanism. Resolving this issue requires a clear and unambiguous definition of the exact utility of native cryptocurrencies.
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