Crypto investors don’t always prioritize key metrics, new

[ad_1]

First-of-its-kind survey provides insight into how crypto investors analyze assets

NEW YORK, July 11, 2023 – Despite continued interest in crypto assets, a majority of investors do not prioritize metrics touted by experienced crypto traders when evaluating the viability and attractiveness of crypto assets , according to a new digital disclosure survey from world leader Fintech, Broadridge Financial Solutions (NYSE:BR).

The Broadridge study, which was conducted in collaboration with Dr. Chris Brummer, Agnes Williams Sesquicentennial Professor of Financial Technology at Georgetown Law, surveyed 2,000 crypto market participants in the US, UK and Canada and asked respondents about the performance metrics they look at. when making an investment decision and where they find this information.

The report found that investors and potential investors of crypto assets generally prioritize conventional metrics such as risk factors and security (54%), financial overview (e.g. cash flow) ( 52%) and the holdings of the management team (43%) when making the decision. the decisions. However, critical crypto-specific metrics such as tokenomics (16%) and network performance (28%) did not even make the top five concerns.

“The survey data reveals that many investors prefer traditional financial metrics and elevate them over other factors that specifically impact crypto,” Dr. Brummer said.

The findings raise questions about whether investors fully appreciate the importance of crypto-native factors that can be key to understanding crypto assets. Network performance, for example, can provide a real-time view into the performance of the platform behind the crypto asset, how holders are interacting with the platform, as well as the number of active projects – from data that every investor should know. Along the same lines, a coin’s tokenism reflects and can determine the current and future supply of a particular asset.

Tackling the knowledge gap

Over 65% of respondents suggested that their holdings represented a long-term investment, suggesting that, contrary to popular perception, most participants may not be speculators. Additionally, 47% of respondents said their space investments were used to educate themselves, suggesting a “learning by doing” approach by investors.

“To help better inform and educate investors, metrics that track the performance of crypto assets need to be standardized, better disclosed, and made more easily accessible, especially for retail investors who need the most relevant information and support. possible to make informed decisions,” said Rob Krugman, Chief Digital Officer, Broadridge. “For a market to survive and grow, you need trust, and trust is not possible without transparency.”

Where and when do investors find crypto information?

To better understand how investors and potential investors stay informed and educated about crypto assets, the survey also asked where respondents get their information and their ideal timeframe for receiving new updates. Respondents indicated that they consult a variety of sources for this information, including the crypto provider’s native website (39%), a broker (35%), a crypto exchange (34%), and the crypto press ( 32%), to name a few.

Given the decentralized nature of crypto assets, potential investors typically look for performance metrics; however, more investors claiming to have experience with crypto assets indicated that they tend to research where the off-chain data is located, usually either on the asset provider’s website or on a crypto-asset provider. third-party data, while potential investors still follow the traditional financial approach and expect the data to be in their exchange app or brokerage.

In terms of frequency of information, just under half of all respondents would prefer to receive updates at least quarterly or monthly, with 27% of respondents preferring to receive updates as information changes. Given the fast pace of the market, information needs to be provided to holders not only to ensure that they receive timely updates on their holdings, but also to ensure that they fully understand what these information means and what the updates entail.

“This is the first-ever study to probe the disclosure preferences of crypto holders and investors, and a project we are proud to have conducted during this time of intense regulatory discussions,” observed German Soto Sanchez, Head of Corporate Strategy, Broadridge.

The full results of the digital disclosure study are available here.

About Broadridge

Broadridge Financial Solutions (NYSE: BR), a global fintech leader with over $5 billion in revenue, provides the essential infrastructure that powers investing, corporate governance and communications to improve the financial life. We provide technology-driven solutions that drive business transformation for banks, brokerages, asset and wealth managers, and public companies.

Broadridge’s infrastructure serves as a global communications hub enabling corporate governance by connecting thousands of public companies and mutual funds to tens of millions of individual and institutional investors around the world. Our technology and operational platforms underpin the daily trading of more than US$9 trillion in equities, fixed income and other securities globally. Certified Great Place to Work®, Broadridge is part of the S&P 500® index and employs more than 15,000 people in 21 countries.

For more information about us and what we can do for you, please visit https://www.broadridge.com/.

Media Contact

Gregg RosenbergCorporate [email protected]

View original content for multimedia download: https://www.prnewswire.com/news-releases/crypto-investors-dont-always-prioritize-key-metrics-new-broadridge-study-finds-301873690.html

SOURCEBroadridge Financial Solutions, Inc.

[ad_2]