Crypto Token Valuations May Be Overstated When Equity Holds the Real Profits

Delphi Digital analysts have reignited a debate over whether crypto tokens and company equity can share value without conflicting claims. In a recent roundtable discussion, analyst Ceteris argued that token market capitalizations should generally be lower than the related company's value because equity holders typically receive most business profits.

Ceteris stated that when projects leave the boundary between tokens and equity unclear, it creates ambiguity that can support inflated token valuations. He cited Grass and Venice as examples of companies with dual structures where revenue may go to equity holders rather than token holders.

Delphi Digital co-founder Yan Liberman noted that strong markets can hide structural weaknesses in token-equity relationships. He said that when business conditions deteriorate or shareholders seek an exit, the structure can weaken and leave token holders outside the deal.