The article argues that tokens do not compound like equities because they lack a reinvestment mechanism. Instead of generating growing cash flows, token holders receive fixed returns based on network usage, which does not lead to long-term wealth accumulation. The author suggests that true value creation in crypto will come from companies that leverage this technology, rather than from the tokens themselves.

Crypto treasury firms are experiencing a significant rise in cumulative market caps, reaching $160 billion as investors seek more equity exposure. These firms provide large token holders with sophisticated exit strategies, enabling them to bypass traditional liquidity constraints and to convert holdings into equity shares for better market positioning. The trend reflects a growing integration of traditional finance with the crypto market.