Why Tokens Can’t Compound - by Santiago Roel Santos
obviously.substack.com · 2,069 words · saved by 1 readers
Equity compounds. Tokens don't.
I am writing this as crypto is melting down. Bitcoin touched $60K, Solana is back to FTX estate sale levels, and Ethereum is $1,800. I’ll spare you the permabear talk. This post is about something more fundamental: why tokens can’t compound. Prices will recover from here. I’ll be called a grave dancer. The core argument will get buried in volatility. But let’s go. Over the past months I’ve argued (at risk of being called midcurve) that crypto is overpriced on fundamentals, that Metcalfe’s Law doesn’t justify valuations, and that adoption and prices can diverge for years. “Dear LPs,…
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