Analysis of Coin-Stock Linkage Strategy Part Two: The Ultimate Logic is Community-Based Value Explosion

Author: Zhang Feng

We are standing at the dawn of a financial paradigm shift. The boundaries between traditional finance (TradFi) and decentralized finance (DeFi), once as solid as a copper wall and iron wall, are now being pried open by the wedge of technology. The light that shines through this gap is what we call "coin-stock linkage."

However, it must be clearly recognized that the current discussion and practice of the linkage between cryptocurrencies and stocks in the market is merely the initial stage of this grand narrative. It is akin to telegraphs compared to the internet, or faxes compared to video calls; its form is taking shape, but it has not yet touched upon the essence. The real linkage between cryptocurrencies and stocks is not simply a price correlation or asset on-chain, but a revolution based on blockchain technology, powered by communities, for global value generation, discovery, and resonance, with its ultimate form being a community-driven explosion of value.

1. Blockchain - The Cornerstone of Restructuring Asset Value Linkage

To understand the future of the coin-stock linkage, one must first examine the soil in which it was born—blockchain technology. Blockchain is not just a bookkeeping technology; it is a completely new organizational paradigm and value internet. It has achieved for the first time in the digital world the uniqueness, verifiability, and programmability of value, providing the possibility for various assets to "perform on the same stage."

In the traditional financial system, there are strict barriers between asset classes. Stocks, bonds, commodities, real estate, etc., are traded on different exchanges, regulated by different authorities, and through different intermediaries. Their value interconnections are often indirect and lagging, primarily conveyed through macroeconomic signals (such as interest rates and inflation) and the collective sentiment of the market. This interconnection is vague, high-friction, and difficult for ordinary investors to leverage.

The birth of blockchain fundamentally changed this landscape. It created a unified, global, 24/7 uninterrupted value circulation layer. On this underlying layer, any asset can be "tokenized," meaning it can be mapped to a standard, divisible, programmable digital certificate. A company's equity can be turned into tokens (tokenized stocks), the ownership of a famous painting can become an NFT, and the income rights of a property can be turned into an STO (security token). When everything can be tokenized and placed on the same programmable ledger, the interlinkage between assets shifts from indirect and macro to direct, micro, and combinable.

The background of value linkage based on blockchain is a prerequisite for the occurrence of coin-stock linkage. It means that the core assets of the traditional world (stocks) and the native value carriers of the crypto world (coins) have, for the first time, a technical foundation for dialogue, exchange, and integration on the same dimension. This is not only about the unblocking of channels but also about the convergence of underlying logic.

2. Current Basic Model of Coin-Stock Linkage Development

Currently, the linkage between coins and stocks that we observe mainly manifests in the following several basic patterns:

Emotional Transmission and Correlation Trading: This is the most superficial and common linkage. When the stock prices of technology companies, especially star companies related to blockchain and AI (such as Tesla and Nvidia), experience significant fluctuations, they often drive the prices of Bitcoin and related concept tokens to move in the same direction. The driving force behind this linkage is the simultaneous change in market sentiment and risk appetite. Investors view Bitcoin as a high-risk technological asset or a macro hedging tool, and its trading logic is similar to that of growth stocks. However, this linkage is fragile and non-causal, and can easily be disrupted by specific events (such as regulatory policies or industry black swans), exhibiting the characteristic of "rising together when up, diverging when down."

Linkage of Public Company Balance Sheets: A typical example is companies like MicroStrategy incorporating Bitcoin as a reserve asset on their balance sheets. At this point, the company's stock price is directly linked to the value of the Bitcoin it holds. When the price of Bitcoin rises, it means the company's assets appreciate, which theoretically drives the stock price up. This model goes a step further than emotional transmission, establishing a financial hard link. However, it is still one-way and static. It merely lists crypto assets as an item on the traditional company's financial statements, without touching on the core of corporate governance, value distribution, and community ecology.

Preliminary Attempts at Asset Tokenization: For example, some institutions attempt to issue tokens representing the stocks of listed companies (such as tokenized Tesla stock). This achieves a formal "on-chain" representation of the asset, allowing investors to purchase using cryptocurrency. However, most of these attempts remain at the level of channel innovation, essentially creating a "mirrored mapping" of traditional assets on the blockchain, while the underlying rights, voting rights, and dividend mechanisms still fully adhere to the framework of traditional corporate law. The blockchain here is merely a more efficient transmission pipeline, rather than an engine for reconstructing production relationships.

The fundamental limitation of these primary models lies in the fact that they are still products dominated by a "centralized" way of thinking. The entities involved are the asset prices themselves, and the driving forces are the macro market and large institutions. Ordinary holders, whether stock investors or cryptocurrency holders, remain passive price receivers. They cannot deeply participate in the process of creating asset value, and the linkage effect is disconnected from their own interactive behaviors. This is similar to the early internet, which merely digitized newspaper content without giving rise to new paradigms of user-generated content like Wikipedia and YouTube. True value linkage has yet to occur.

3. The Ultimate Logic of Coin-Stock Linkage - The Value Explosion of Communityization

When the linkage between cryptocurrencies and stocks surpasses the initial stage of price correlation and enters the deep integration phase, its ultimate characteristic will transition from "asset linkage" to "community linkage." True cryptocurrency and stock linkage is a community-driven value explosion. It will unfold around the following three dimensions:

(1) The Revolution of Value Generation: From Company to DAO (Decentralized Autonomous Organization)

In the future, "stocks" will no longer just be certificates representing residual claims against a centralized company. They may evolve into tokens representing governance rights, contribution rights, and profit rights in a DAO. This DAO could be developing an open-source protocol, operating a virtual world, or managing a global physical infrastructure network.

In this case, the boundary between "tokens" and "stocks" becomes blurred. Holding tokens means that you are a "shareholder" of this network. Your contributions (code, content, community management, liquidity provision) directly determine the value growth of the network and receive rewards (more tokens) in real time and transparently through smart contracts. The generation of value is no longer a long process defined by company management strategies, executed by employees, and ultimately reflected in financial statements, but rather a dynamic process of real-time collaboration and co-creation among global community members.

For example, a DAO aimed at building a decentralized physical infrastructure network (such as 5G base stations or charging piles) has a token that represents both ownership of the network (the nature of shares) and is used to pay for network usage fees (the nature of currency). Community members can invest by purchasing tokens or "mine" tokens by participating in the deployment of hardware devices. The success of the project is closely related to the actions of each community member, with value generated and accumulated in every small contribution.

(II) The Evolution of Value Discovery Mechanisms: From Financial Statements to On-Chain Data

In traditional stock markets, value discovery relies on quarterly reports, annual reports, and analyst meetings, with severe and delayed information asymmetry. In the community-driven world of coin-stock linkage, value discovery will be real-time, transparent, and based on on-chain data.

The treasury balance, income flow, distribution and lock-up situation of tokens, voting participation in governance proposals, user growth of core products, and all other key indicators of a DAO are publicly recorded on the blockchain. Any participant can analyze this data to value the project. The sentiment of the community and the strength of the consensus are no longer vague concepts, but quantifiable indicators that can be measured through on-chain activities (such as the number of addresses, transaction frequency, and Gas consumption).

This transparent value discovery mechanism enables the community to identify value earlier and more accurately, and quickly transform consensus into price signals through collective actions (buying, staking, participating in governance). The emergence of value is no longer a solo act by Wall Street giants, but rather the result of data-driven collective decision-making by the global community.

(3) The Flywheel Effect of Value as Leverage: Liquidity, Governance, and Brand

The true linkage between coins and stocks will create a powerful flywheel effect, leveraging liquidity, governance, and brand value against each other.

Liquidity Leverage: Tokenized "stocks" are traded 24/7 on global DEXs (Decentralized Exchanges), achieving liquidity and audience far exceeding traditional stock markets. Higher liquidity attracts more investors, pushing up valuations, which in turn supports community development and operations.

Governance Leverage: Community holders directly decide the project's development direction through voting (such as the use of treasury funds and technological upgrades). Efficient governance can quickly respond to market changes, create greater value, enhance community confidence, and further attract funds and talent.

Brand Leverage: Every token holder is a stakeholder and brand ambassador of the project. Their spontaneous promotion and network effects can create a level of outreach that traditional advertising cannot match. A strong community brand, in turn, enhances the value and appeal of the token.

Once this flywheel is activated, the value explosion will be exponential. It is no longer a linear relationship of "stock price rises, so coin price follows" but rather an exponential growth cycle of "community engagement → value creation → price discovery → attracting more community members → more active value creation."

4. Moving Towards a Community-Driven Value Internet

Currently, the primary stage of the linkage between cryptocurrencies and stocks based on price association is merely the prelude to this great transformation. It shows us possibilities but also exposes the limitations of the old paradigm. As the ultimate form of cryptocurrency-stock linkage, its core is not technology or financial engineering, but "community".

It means that the value of the asset will be unprecedentedly tied to the community that creates and supports it. The future "super assets" are likely to be nurtured not by a great company, but by a vibrant global DAO. Its value will no longer be solely determined by profits on financial statements, but will be defined by its network effects, community engagement, governance efficiency, and ecological prosperity.

This community-driven value explosion will have a disruptive impact on corporate systems, regulatory frameworks, and investment philosophies. The path will inevitably be tortuous, accompanied by tremendous uncertainty. But the trend is irreversible. When we talk about the linkage between cryptocurrencies and stocks, we are truly discussing the arrival of a more open, inclusive, and efficient value internet. In this network, everyone is no longer a bystander, but a co-creator, discoverer, and sharer of value. This is the most exciting ultimate future of the cryptocurrency-stock linkage.