Emphasis on Token Valuation Criteria, Usage, and Buyback Structure

Austin Barak analyzed that the criteria for valuing cryptocurrency tokens are becoming more aligned with actual usage and the revenue buyback structure rather than the launch of new blockchains. He presented product-market fit, continuous revenue growth, and the conversion of revenue into buybacks and burns as key criteria. The investment allocation of Relayer Capital has shifted from an initial split between venture and circulating tokens to approximately 95% focusing on circulating tokens. Barak explained that during market downturns, it becomes easier to distinguish between tokens that have risen solely based on narrative and those that have actual usage and growth potential. He pointed out that the buyback multiple should not be interpreted like the price-to-earnings ratio (PER) of stocks. Venice's VVV is cited as an example that connects platform revenue with token burns, stating that VVV is purchased and burned according to the subscription plan upon new sign-ups. Barak estimated Venice's annualized revenue as of August 2026 to be $10.7 million, with an annualized burn amount of $8.3 million. He mentioned that the value of PumpFun is about five times the buyback amount, while HyperLiquid and Writer are around 30 to 40 times. Barak analyzed that while the trends of individual meme coins may be short-lived, the demand for highly volatile speculative products can recur. Over 65% of EtherFi's revenue comes from card and collateralized loans, with the remaining 35% from revenue and staking operations. This analysis is more about confirming the sustainability of actual usage, revenue return, and buyback and burn rules rather than making a buying decision on specific tokens.

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