TechFlow reports, on March 9, trader Eugene shared on his personal channel that despite significant regulatory progress in the crypto industry in recent years, from a long-term value investment perspective, the majority of DeFi and utility tokens still lack investment merit. Eugene proposed three core criteria for value investing in crypto tokens:
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First, the project team must prioritize token holders' interests above or at least equally with equity holders, clearly and consistently communicating that token holders are the ultimate beneficiaries;
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Second, the project's business model should not directly depend on speculative cycles in the crypto market, avoiding scenarios where valuation metrics such as P/E or P/S ratios become irrelevant when trading volume drops by 90% or more during bear markets;
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Third, the management team must demonstrate execution capability, able to outcompete rivals through technological moats or superior operational execution.
Eugene stated that currently only a small number of protocols meet these criteria, and he will purchase those tokens at appropriate times, while considering 99.9% of other tokens unworthy of investment. He specifically warned investors against the highly irrational behavior of annualizing revenue projections based on "favorable" single-month data at the peak of a project's hype and momentum.
