Understanding Investor Expectations in Crypto Projects

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In our recent Treasury Talks session on Twitter/X Spaces we explored the topic of Investor Expectations. This came off of the assumption many in the crypto community make that by buying and holding a token or NFT, you are an investor in the company or project that issued those digital assets.

We were joined by developer Chris Dangerfield, developer and ex-financial advisor Denis Angell, community member Wesley and project founders Toni and Chris Kitto.

The Definition Dilemma: Investor vs. Token Holder

One of the core points raised was the definition of an investor. Duncan clarified that in “traditional finance, an investor is someone who provides funds directly to a company in exchange for ownership or dividends. However, in the crypto space, the lines blur.” Chris D highlighted the ambiguity of the term “investor,” which can mean different things to different people. The key takeaway is that holding tokens rarely equates to being an investor in the project itself.

Token Purchase and Ownership: Rights and Expectations

The discussion also covered the differences between buying tokens directly from a project during an IDO/ICO and purchasing them on the secondary market. Dennis emphasized the importance of legal documentation in defining investor rights, stating, “If the rights aren’t defined, then you don’t have them.” Wesley added that many token holders see themselves as investors due to their expectation of profit, but this expectation doesn’t always align with reality.

Real-World Examples and Regulations

Real-world examples like Globiance Pay and their GBPAY token, mentioned by Tony, showcased platforms that operate within regulatory frameworks, offering tokens that entitle holders to profits. Dennis A’s insights on the EU’s MiCA regulations highlighted how legal frameworks are shaping investor expectations and protecting their rights. These regulations aim to bring clarity and security to the crypto space, ensuring that investors know what they are getting into.

The Role of Utility and Community in Crypto Projects

A recurring theme was the importance of utility and community engagement. Duncan shared how Treasury is built on personal funds and community support, emphasizing that token holders are more like supporters than traditional investors. Wesley pointed out the shift from speculation to real-world use cases, stating that projects with tangible utility are more likely to sustain long-term interest and support.

The Impact of Education and Awareness

Chris K stressed the need for investor education, highlighting the risks of the unregulated crypto space. He mentioned the ease of becoming a project leader or investor, often without sufficient knowledge or experience. This underscores the importance of platforms like Treasury’s Academy and Treasury Talks in spreading awareness and helping potential investors make informed decisions.

Addressing the Speculation vs. Investment Debate

The session also tackled the ongoing debate on whether most crypto participants are speculators or investors. Chris D compared traditional stock investments to crypto, noting that while both involve risk, the expectations in crypto are often skewed towards quick profits. Daniel S added that the psychological aspect of investing plays a significant role, with many investors driven by the fear of missing out (FOMO) and unrealistic expectations.

Conclusion

The discussion on investor expectations in crypto projects highlighted the need for clear definitions, robust legal frameworks, and continuous education. As the crypto space evolves, it’s crucial for participants to understand their rights and responsibilities, whether they see themselves as investors, speculators, or supporters. Platforms like Treasury Talks play a vital role in fostering this understanding, ensuring that the crypto community grows in a healthy and informed manner.