When you own a stock and the business behind your shares makes money, you usually see some of it kicked back your way, whether as a direct transfer of money like with a dividend, a buyback of shares that lifts the price of what you still own, or a reinvestment that increases the value of the company on a longer timetable.
But when you hold a cryptocurrency like Solana or Ethereum, the relationship is almost always one-way, as there's rarely any mechanism by which the network's activity or on-chain value gets translated into price appreciation or a payout of any kind. That also makes it hard to be enthusiastic about their development roadmaps as a holder, since the reinvestment into platform technology offers no clear way to reward you.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Contrary to that, the common dynamic is that two smaller cryptos are building something closer to the corporate playbook. There's Hyperliquid (CRYPTO: HYPE), which routes nearly all of its trading revenue into open-market buybacks of its own token, and Zcash (CRYPTO: ZEC), which hands a fifth of every newly issued coin to the developers in its ecosystem.
As an investor, that makes the outlooks for those two coins a lot easier to believe in -- but should you buy either of them?
But when you hold a cryptocurrency like Solana or Ethereum, the relationship is almost always one-way, as there's rarely any mechanism by which the network's activity or on-chain value gets translated into price appreciation or a payout of any kind. That also makes it hard to be enthusiastic about their development roadmaps as a holder, since the reinvestment into platform technology offers no clear way to reward you.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Contrary to that, the common dynamic is that two smaller cryptos are building something closer to the corporate playbook. There's Hyperliquid (CRYPTO: HYPE), which routes nearly all of its trading revenue into open-market buybacks of its own token, and Zcash (CRYPTO: ZEC), which hands a fifth of every newly issued coin to the developers in its ecosystem.
As an investor, that makes the outlooks for those two coins a lot easier to believe in -- but should you buy either of them?
3 months ago
