Concerns About Crypto Treasury ‘Bubble’ Are Unfounded: Insights From TON Strategy Leader

TON Strategy’s CEO, Veronika Kapustina, suggests that the current signs of a bubble in corporate digital asset treasuries do not signal doom. Instead, she believes that as the market evolves, long-term capital will eventually flow in.

“I think, look, obviously, it looks like it’s a bubble. As in, all the indicators look like it’s a bubble.” - Veronika Kapustina
“I think it looks like a bubble. All indicators point to that.”

During the Token2049 conference in Singapore, Kapustina acknowledged the appearance of a bubble but reassured that this phase is different from previous ones seen in both the crypto space and traditional finance. She referred to digital asset treasuries as a groundbreaking investment tool that has recently caught the attention of shrewd investors.

Kapustina pointed out:

“So we’re now having smarter investors look at it closely and really differentiate the wheat from the chaff.”

Describing the current climate, she highlighted that digital asset treasuries (DATs) are crucial as they serve as a link between traditional finance and cryptocurrencies. She predicts that while a crash isn’t anticipated, there may be some consolidation as recent DATs aim to meet their goals.

Kapustina elaborated:

“There’s a lot of excitement for a surge in something new. Then it peters out, and a bit of consolidation, and then the real medium to long-term capital comes in.”

Pioneers of the Strategy Model

Kapustina observed that Michael Saylor’s Strategy Inc. pioneered the DAT model employing Bitcoin as a base. This year has shown the viability of the model beyond Bitcoin, with successful instances involving Ether, Solana, and her own venture.

In addition, she noted: “Investors will be able to appreciate the true value of DATs from a functionality and utility standpoint with respect to their investment networks.”

Accumulation of Cryptocurrencies

Despite a rise in cryptocurrency values, corporate digital asset treasuries have continued to acquire digital assets, with significant quantities of Bitcoin and Ethereum raising questions about market saturation. Currently, over 1.3 million BTC are held in various corporate treasuries, along with 5.5 million ETH, indicating a persistent interest in crypto investment.