Columbia Professor: Digital Asset Treasuries Turned Into “Mass Exit Event”

Core Insights - Digital asset treasuries have shifted into a "mass extraction and exit event," leading to a decline in crypto prices, contrary to previous optimistic forecasts regarding corporate Bitcoin adoption [1][2] - Bitcoin has fallen below $100,000 for the first time since June, marking a 20% drop from its October peak and resulting in a loss of over $1 trillion in total crypto market capitalization [2] Group 1: Treasury Launches and Market Impact - The wave of treasury launches is criticized as schemes aimed at enriching insiders rather than creating sustainable value [2] - Launching costs, which can reach millions, are often covered by companies dumping supposedly locked tokens to pay for SPAC fees and other expenses [4] - Conflicts of interest arise when treasury companies appoint founders or venture capitalists to boards, leading to the misallocation of shareholder funds to their own startups [5] Group 2: Market Dynamics and Trust Issues - The unexpected increase in circulating supply of many altcoins has led to a rapid discounting by markets, raising concerns about the potential misuse of ecosystem funds [6] - The erosion of trust in the token market is significant, as investors question the integrity of ecosystem funds and their potential misuse [7] - The excessive capital raising and token minting practices are viewed as detrimental to project viability over time, challenging the notion that treasuries are purely beneficial [7]