TheCorporateCounsel.net

Broadridge surveyed 2,000 randomly selected (self-identified) crypto market participants in Canada, the U.K., and the U.S. from March to June 2023. The goal of the survey was to better understand what holders of crypto assets think is important when purchasing a crypto asset. In a 23-page report, Broadridge summarizes the results of the survey and, as Keir Gumbs, Broadridge’s CLO, notes on LinkedIn, the report “sheds light on the activity and process on how crypto market participants track performance of digital assets, and what avenues they seek out to find that information.”

Here are two of the key findings from the report’s overview:

Long-term investment
Over 65% of respondents suggested their holdings represented a long-term investment, suggesting that, contrary to popular perception, most participants are not speculators.

Additionally, 46.7% of respondents answered that their investments in the space were being used to educate themselves, indicating a “learning by doing” approach by holders.

Traditional metrics prioritized over native crypto metrics
When asked about what type of disclosure information is most important in their decision making, respondents consistently selected traditional investment metrics including financials, risk and security, and information about the management team over native crypto metrics such as tokenomics and network / platform activity. While not surprising given the novelty of crypto assets, this suggests possible underappreciation of items critical to pricing and understanding the attractiveness of a crypto asset.

The study also found that studying crypto markets will continue to be important, with survey respondents signaling a persistent interest in the space despite the challenges and setbacks currently facing the industry.

– Meredith Ervine