2025-12-25 03:25:24

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.

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FOMOSapien

· 6h ago

Basically, no one knows how to value this stuff; everyone is just betting on expectations. It feels like we're trying to apply the stock market framework to crypto, but these two species are fundamentally incompatible. The disconnect between assets and market value is so absurd; it seems the capital market hasn't figured out how to play this either. That's why retail investors will always be no match for whales—information asymmetry and pricing power. Recalling some projects from a few years ago, with assets piling up but then crashing overnight in an awkward collapse. We still need to find a new valuation logic; otherwise, it's always a game of retail investors being the chives. In crypto, we definitely need to redefine value; right now, it's just hype and speculation.

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GasBandit

· 16h ago

The stock price drops 95% and assets still support the bottom, this move is really clever. Traditional finance should have gone bankrupt long ago, haha. The idea of pricing based on intuition is so true. Anyway, we're all just gambling. That's why I never look at market cap, only at holdings. In the end, no one really knows how much these assets are worth. A 10 billion fundraising plan using 200 million SOL to leverage? That leverage ratio is incredible. Crypto valuation systems? Bro, that's just a joke. Disconnection between assets and market cap happens every day; just get used to it.

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ChainMaskedRider

· 16h ago

How should I put it? It's just outrageous. Assets exceeding market value can still drop 95%. The valuation system is fake, the market consensus is fake, it's all a gamble on the next round of financing to take over. 200 million SOL leverages 10 billion in fundraising. I can't do the math, but I find it very surreal. Pricing based on intuition is basically a game of pass-the-parcel; whoever takes the last hit is doomed. Now it seems like all crypto assets have a bit of the Emperor's New Clothes feeling. That's why I only dare to play with coins that I don't fear losing. The market cap logic is completely fictional. Wait, is the whale making a profit or a loss now? Assets are worth far more than the market cap, but the stock price is crashing. Is this an opportunity or a trap? I'm a bit confused. To put it bluntly, the valuation system was originally a tool for deception. Where is the true value? No one knows; everyone is just gambling.

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LiquidationWizard

· 16h ago

It's their own fault. I've long said that this valuation system is just a house of cards. Assets valued far beyond their market cap sound like excuses for their bad investments. The real issue is that no one dares to admit this is a Ponzi scheme. Whales mobilizing hundreds of millions in fundraising? Basically, it's like playing mahjong with 200,000 SOL and winning big. When the next bull market arrives, these so-called "undervalued assets" will still go to zero, no surprises.

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InfraVibes

· 16h ago

Laughing to death, it's that same story of "assets far exceeding market value." Honestly, no one believes this stuff. Everyone says there's a treasure, but no one dares to take the risk. That's the real truth. Valuation models? We don't have those at all; it's all based on stubbornness and FOMO. That being said, even promising projects need to survive the bear market first.

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