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Ethena’s Guy Young has praised Crypto Treasuries as the solution for VC’s overhang and a growth motor for projects for generating income. But there is still a risk.
Ethena [ENA] The founder of Labs, Guy Young, has defended crypto treasuries as the best chance of unlocking the notorious venture capital (VC) token and dumping in space.
Young admitted that even ENA had the challenge of VC SEL-offs due to limited liquidity in the crypto sector.
But the use of traditional markets can provide relief from overhang, young noted.
“You wanted a solution for the overhang of VC disclosure? Well, this is the (crypto -outskists).”
Source: X
Crypto treasuries: a solution or risk?
VC deflecting happen when early donors leave their participations and load it to the retail market to restore their investment.
Unfortunately, in most cases the overhang of VCs always drags the price lower, so that the retail trade remains.
The sale becomes even worse during periods of a broader negative market sentiment.
For example, Celestia [TIA] Price fell more than 90% in the middle of Polychain VC’s consistent dumping Worth millions of making rewards and unlocking. Now a new company wants to buy Polychain’s Tia Holdings.
The landfill on the retail trade became so notorious that Crypto Twitter (CT) community of VC-Supported projects such as ‘VC-Tokens’ called them, “she bundled and turned to see Memecoins in Memecoins, the trend” Memecoin SuperCycle “of 2024.
Real income versus “vapourware”
But young recognized That most Altcoins are ‘Shitcoins’ and ‘Vapourware’, and offering them through an ETF (listed fund) will not change.
Young, on the other hand said That TradeFi will gladly support crypto projects with income such as Ethena.
“But I do think that this is an incredible bullish development for a small handful of tokens where Tradfi can endorse a real business model that benefits from secular growth trends.”
Various legacy companies embraced in 2025 Crypto Treasuries and went further Bitcoin [BTC] And Ethereum [ETH].
Most are lured by the windfall of Strategy (formerly micro strategy) Successful BTC bet.
The results? The stock prices of the companies have exhibited more than the underlying crypto assets. In a sense, it has been a crypto treasure box instead of an Altcoin season.
But there is more to it than just dislocation in price rating.
Bullish … with a warning label
Critics warned That the excessive debt lever used by the Treasury companies to buy more BTC and Altcoins can be a liquidation risk for the entire sector and Tradfi if they go bankrupt.
Source: X
For Perspectief, strategy has the biggest debt profile of more than $ 8 billion, while Metaplanet Is only $ 116 million due.
But Alex Thorn from Galaxy Research triggered The debt concerns as ‘exaggerated’, which states that most will start ripening by 2028.
In general, crypto treasuries have offered the necessary liquidity in the market to deduct. But their debt lever remains a risk issue.