Recently, the crypto market has staged another dramatic reversal. A company called Upexi (UPXI), which controls 2 million SOL tokens, saw its stock price plummet by 95% in a short period, with its market capitalization dropping to just over $100 million. Yet, the company surprisingly submitted a financing plan to regulators — with a maximum funding target of as much as $10 billion.

This news was indeed somewhat surreal. The market's reaction was straightforward: the stock price continued to dive. Clearly, investors are not convinced by the narrative of "using crypto assets to tell financing stories."

This is not simply a matter of high-risk investment opportunities but reflects a deeper valuation contradiction between crypto assets and the traditional financial system. The core issue lies here: digital assets on the chain may not necessarily translate into equivalent credit backing in traditional financing markets.

Some might ask, considering that 2 million SOL at current prices is indeed a substantial figure, why can't it serve as a solid foundation for financing? This involves the reality faced when assets cross between two worlds — on-chain assets must first pass several hurdles to enter traditional valuation systems. The first hurdle is liquidity. Seemingly large holdings, once involved in large-scale liquidation, can be severely impacted by market depth, counterparty risk, and price slippage... These factors directly erode the on-paper value. That’s why huge holdings often become awkward when it comes to financing: they look impressive but are difficult to utilize effectively.