Crypto Stocks Are Up 23% While Crypto Tokens Are Down 36% — Is the Value of Crypto Shifting Away From Tokens?

WHY IT MATTERS

Imagine the early days of the internet: you could either invest in the technology itself (like buying a piece of the HTTP protocol, if that were possible) or invest in companies built on top of it (like buying Amazon stock). In crypto, tokens were supposed to be like owning a piece of the protocol — giving everyday people a way to benefit from the technology's growth without needing to buy stock. But this year, the companies built around crypto are gaining value while the tokens are losing it. This matters because it suggests the profits of the crypto industry might be flowing to corporations and their shareholders rather than to the people holding tokens. For newcomers, it's a reminder that 'investing in crypto' can mean very different things — buying tokens vs. buying stock in crypto companies — and those two bets can produce very different results.