Should Crypto Investors Care About a Project’s Treasury?
A crypto project’s treasury can reveal how much financial runway it has and how dependent it may be on raising additional funds. Treasuries can contain cryptocurrencies, stablecoins, traditional currencies or tokens belonging to the project itself. The composition matters because a treasury made almost entirely of the project’s own token may look much larger during a bull market but could lose significant value during a downturn. Investors rarely discuss treasury management when analysing crypto projects, even though it can influence development, salaries and future growth. Should treasury transparency become a standard part of evaluating a crypto project’s financial health?