Token Market Dilution And Performance-Fundamentals Disconnect

Issue 83 Edition 2026-03-24 7 min read

General

Sources: 1 • Confidence: Medium • Updated: 2026-04-11 16:56

Key takeaways

Token performance has not improved commensurately with positive institutional and infrastructure trends in crypto, according to the speaker.
Blockworks launched a product called Blockworks Investor Relations (Blockworks IR) aimed at helping on-chain businesses present standardized, transparent, data-driven investor information with less overhead.
Investor distrust in tokens is attributed to market issues (too many assets, fragmented liquidity, low issuance barriers) and information issues (missing or incomplete data, lack of disclosures, and non-standardized reporting).
Blockworks IR aims to provide engagement analytics and investor-level insights by linking investor identity with on-chain exposure and behavior to help protocols target outreach.
The number of public companies in the United States fell by roughly half over the last 20 years while the cost of being public rose about fourfold, including about $2.2 million per year in auditing and compliance costs, according to the speaker.

Token performance has not improved commensurately with positive institutional and infrastructure trends in crypto, according to the speaker.
The historical relationship between on-chain revenue growth and token price performance broke in 2025, with revenues reaching records while token prices did not move, according to the speaker.
The number of tokens in existence increased by about 35 million over the last four years while overall crypto market cap was roughly flat over the same period, according to the speaker.
Average market cap per token is down about 50% from 2021 levels after accounting for the growth in token count, according to the speaker.
Average token price is down about 80% when adjusting for token supply inflation, according to the speaker.
Across token cohorts, outcomes since 2022 have broadly been down on market cap, average price, and median price, while Bitcoin is described as the cohort that is working.

Blockworks launched a product called Blockworks Investor Relations (Blockworks IR) aimed at helping on-chain businesses present standardized, transparent, data-driven investor information with less overhead.
Blockworks IR launched at the Digital Asset Summit in New York and had BNB and JITO as inaugural clients.
Blockworks IR is described as consisting of standardized data publication, IR services (including quarterly reports and investor calls), and an end-to-end platform to manage the workflow.
Blockworks IR is positioned as a branded, centralized investor-relations portal for a protocol analogous to a public company's IR webpage where materials and data live in one place.

Investor distrust in tokens is attributed to market issues (too many assets, fragmented liquidity, low issuance barriers) and information issues (missing or incomplete data, lack of disclosures, and non-standardized reporting).
Crypto token investors lack a default standardized investor-facing source of truth comparable to public-equity IR conventions like quarterly cadences, standardized reporting, guidance, and centralized materials.
On-chain protocols can deliver better-than-TradFi investor relations because much of their operating and financial history is transparently available live on-chain, according to the speaker.
Standardized and regularly available information is presented as existentially necessary for token markets because investors will not continue operating without sufficient disclosure.

Blockworks IR aims to provide engagement analytics and investor-level insights by linking investor identity with on-chain exposure and behavior to help protocols target outreach.
Blockworks plans to release a 'BlockWorks agent' intended to compress Blockworks research, data, and market understanding into an AI-like assistant to replace or reduce expensive external IR services.
The speaker reported that Vlad Tenev said he was bored listening to his own company's investor presentation.
Within about two years, protocols and exchanges are predicted to adopt proactive, event-driven, socially distributed investor-relations models rather than relying on traditional quarterly reporting formats.

The number of public companies in the United States fell by roughly half over the last 20 years while the cost of being public rose about fourfold, including about $2.2 million per year in auditing and compliance costs, according to the speaker.

What is Blockworks IR's pricing model (SaaS, retainer, usage-based, tiered) and what specific deliverables are included at each level?
What standardized data schema(s) does Blockworks IR publish (definitions, accounting conventions, and data lineage), and how are calculations audited or verified?
How does Blockworks IR link investor identity to on-chain exposure/behavior, and what are the privacy, consent, and data-quality limitations of that linkage?
Do protocols using standardized IR portals and regular reporting see measurable changes in liquidity quality, investor breadth, volatility, or cost of capital compared to similar protocols that do not?
Are the stated token-universe metrics (token count increase, normalized market cap decline, inflation-adjusted price decline) correct under transparent methodology and consistent data sources?

If standardized, transparent token investor reporting becomes common, token markets could price fundamentals more efficiently and reduce distrust driven by missing disclosures and non-standard reporting.
Blockworks IR adoption could indicate demand for lower-overhead disclosure infrastructure for on-chain businesses, potentially shifting budget from ad hoc communications toward recurring reporting workflows.
Identity-linked engagement analytics could enable more targeted investor outreach by protocols, implying a potential new data-driven IR category if privacy and data quality constraints are solvable.

Clear pricing and packaging that supports repeatable deployments, plus visible growth in number of protocols publishing standardized portals with consistent definitions and data lineage.
Published standardized data schema with auditable calculations and verification processes, and evidence that reported metrics are comparable across protocols.
Measured changes for adopting protocols versus peers, such as improved liquidity quality, broader investor participation, lower volatility, or reduced cost of capital over time.

Low uptake or high churn after initial launches, suggesting standardized portals do not solve the trust or overhead problems sufficiently.
Regulatory, privacy, or consent constraints materially limit identity linkage, making engagement analytics unreliable or unusable for investor-level insights.
No observable improvement in market outcomes for adopters despite regular standardized reporting, implying token performance disconnect is driven mainly by market structure rather than information quality.