In crypto, valuations clearly matter more than revenue. In that context, network effects and the adoption of protocols or tokens can serve as meaningful metrics to justify those valuations. But as the number of new tokens continues to grow exponentially, gaining strong network effects is becoming increasingly difficult each year.

For many of these tokens, substantial venture funding also raises concerns about decentralization and distribution — especially when private investors receive tokens at much lower prices than retail buyers at listings, and when there is centralized concentration of token ownership