Key Takeaways
Ethena’s Man Younger has hailed crypto treasuries as the answer to VC’s provide overhang and a progress driver for income era tasks. However threat nonetheless stays.
Ethena [ENA] Labs founder, Man Younger, has defended crypto treasuries as one of the best shot at fixing the notorious Enterprise Capital (VC) token unlocks and dumping within the house.
Younger admitted that even ENA had the problem of VC sel-offs due to restricted liquidity within the crypto sector.
However leveraging conventional markets may provide aid from provide overhang, Younger noted.
“You wished an answer to the overhang of VC unlocks? Nicely, that is it (crypto treasuries).”
Supply: X
Crypto treasuries: An answer or threat?
VC unlocks occur when early backers exit and offload their holdings onto the retail market to get better their funding.
Sadly, usually, the availability overhang from VCs at all times drags the value decrease, leaving retail with losses.
The sell-off will get even worse during times of broader detrimental market sentiment.
For instance, Celestia [TIA] worth plunged over 90% amid Polychain VC’s constant dumping value tens of millions from staking rewards and unlocks. Now, a brand new agency desires to purchase off Polychain’s TIA holdings.
The dump on retail turned so notorious that Crypto Twitter (CT) neighborhood dubbed VC-backed tasks as ‘VC tokens,’ shunned them, and pivoted to memecoins, birthing the ‘memecoin supercycle’ development seen from 2024.
Actual income vs “vapourware”
Nonetheless, Younger acknowledged that the majority altcoins are ‘shitcoins’ and ‘vapourware’, and providing them through an ETF (exchange-traded fund) received’t change something.
In distinction, Younger said that TradFi will gladly again crypto tasks with income like Ethena.
“However I do suppose that is an extremely bullish growth for a small handful of tokens the place TradFi can underwrite an actual enterprise mannequin benefiting from secular progress tendencies.”
In 2025, a number of legacy corporations have embraced crypto treasuries and gone past Bitcoin [BTC] and Ethereum [ETH].
Most have been lured by the windfall from Strategy’s (previously MicroStrategy) profitable BTC guess.
The outcomes? Inventory costs of the corporations have spiked greater than the underlying crypto property. In a approach, it has been a crypto treasury somewhat than an altcoin season.
However there’s extra to it than simply dislocation in worth appreciation.
Bullish… with a warning label
Critics have warned that the extreme debt leverage deployed by the treasury corporations to purchase extra BTC and altcoins may pose a liquidation threat to your entire sector and TradFi in the event that they go bankrupt.
Supply: X
For perspective, Technique has the biggest debt profile of over $8B, whereas Metaplanet solely owes $116 million.
However Galaxy Analysis’s Alex Thorn downplayed the debt issues as ‘overblown’, stating that the majority will start to mature by 2028.
Total, crypto treasuries have supplied the wanted liquidity out there to cap drawdowns. However their debt leverage stays a threat concern.
