Institutional Layout in the Crypto Market: The Future of LP Tokens, Revenue Models, and Tokenization of Stocks

As a professional crypto asset portfolio manager, VanEck's Pranav Kanade shares his unique insights on the current crypto market. He believes that institutional funds are gradually entering the crypto space through direct asset purchases and the development of on-chain products. Although many institutions have not truly "arrived" yet, family offices and high-net-worth individuals have begun to get involved.

Pranav pointed out that there are structural opportunities in the LP Token market. A large amount of capital is flowing into early projects, but there is a lack of sufficient market demand to support the Token value. This has led some capital pools to realize the issue of over-allocation in the venture capital space.

Regarding the sustainability of the "revenue model," Pranav believes the crypto industry faces a binary choice: to become an accessory to the internet or to focus on creating real value. He emphasizes that, apart from value storage assets, other assets will ultimately be regarded as "capital return-type" assets. The crypto industry needs to clearly articulate the true value of its assets to attract mainstream capital.

Regarding when the project will launch the fee mechanism, Pranav emphasized the importance of the moat. Many crypto projects lack a moat, and they may lose customers once fees are charged. Ideally, the project should support the team’s further research and development by capturing fees, promoting the birth of better products.

Pranav predicts that tokenized stocks could become the next trillion-dollar valve. Traditional companies may choose to exit the market in token form rather than equity form, which will drive the alternative token market to expand further. He also pointed out that stablecoin legislation is about to be passed, which may encourage a series of companies to adopt stablecoins to optimize their business cost structure.

Regarding the valuation of L1 chains, Pranav suggests focusing on the developments over the next 2 to 5 years, rather than judging based solely on short-term data. He believes that the demand for block space after the future success of on-chain applications and the scalability of the chain itself should be taken into account.

Finally, Pranav discussed the future development of infrastructure and applications. He believes that there have not yet been any killer applications that have migrated from their respective chains and independently built a complete technology stack. In the future, whether cryptocurrencies will go mainstream through existing Web2 giants or VC-backed startups remains an open question.