When a major whale institution in a leading crypto ecosystem uses 2 million SOL and a market cap of over 100 million USD to leverage a 10 billion USD fundraising plan, a painful question surfaces — the valuation logic of the crypto industry has been completely disrupted.

This company’s stock price plummeted 95%, yet the value of its held assets far exceeds its market cap. It sounds absurd, but in the crypto world, this is everyday reality.

The rules of traditional capital markets are clear: companies with strong profitability, ample cash flow, and substantial assets should see their market value rise accordingly. Severe losses and operational difficulties naturally lead to falling stock prices. Tools like P/E ratios and P/B ratios can help estimate reasonable values, maintaining a certain balance between assets and market cap.

But crypto assets operate under a completely different set of rules. Without a clear valuation anchor, prices fluctuate wildly. Market sentiment shifts with policy changes, technological advancements, or capital flows, causing prices to skyrocket or plummet. This results in a bizarre phenomenon: companies holding large amounts of high-quality crypto assets are often valued ridiculously low. Assets and market cap become completely disconnected.

Why is this happening? Fundamentally, because the value of cryptocurrencies is inherently ambiguous. Unlike corporate equity, which is backed by profits and constrained by balance sheets, crypto asset prices are driven more by expectations, consensus, and liquidity, making volatility a natural feature. When this uncertainty interacts with traditional valuation models, it turns into a numbers game.

What this event exposes is actually a long-standing pain point in the industry: we have yet to develop a valuation system truly suited for crypto assets. Whether for institutions or retail investors, ultimately, everyone is pricing based on intuition.