Company: TLGYF
Filing Date: 2025-08-25
Form Type: 425
Source: 0001213900-25-080375
Chunk: 5

Company: TLGY ACQUISITION CORP
Filing Date: 2025-08-25
Form: 425
Chunk 5
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? Do you envision the earnings of the protocol in an optimal state once you hit your milestones kind
of offsetting those unlocks, or do you view the governance token as almost like a new kind of layer 1 valuation framework or it’s maybe
benchmarked to Circle? Or just how should we think about your protocol’s valuation and what the drivers of that are going forward?

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Guy Young: Yes, I mean
it’s no secret obviously that we had a huge amount of challenge with VC unlocks and Team unlocks into a market that was like melting down
like 80% on alts from January this year. So I think my fundamental view is actually that we as an industry and a space kind of need to
find the maturity process to take alts into a format where actually there’s a new buyer that sits outside of crypto. So I’ve written about
this but I think there’s a fundamental like flows issue within crypto where there’s too much VC capital and too little capital that’s
sitting on liquid markets to actually carry that valuation from TGE through its life cycle after that. And what happens in normal markets
is that there’s some amount of VC capital, and then you IPO into an equity market where billions and trillions of dollars can actually
sustain those valuations beyond there. That’s what we actually find interesting about this whole DAD phenomenon which is less around like
premium to NAV arbitrage type games which are being played right now but more around access to $100 trillion plus of capital that’s sitting
within normal equity markets that might actually just look at Ethena and say this is an interesting business within a category that we
think has like secular tailwinds sitting behind it. And I think that was kind of demonstrated by what you saw with the way that Circle
performed which is it came out traded up to a $60B valuation at like 300x earnings. To me that was the indication that there’s too much
money in TradFi trying to find exposure to this trend with no ways to actually express our view outside of just a single asset. And so
I think the view that we have is that at some point the tokens within crypto actually have to become appealing enough to people like real
capital allocators that sit outside of the space that can actually buy these things in the form that they used to with an equity markets.
And so I think that that’s actually the natural buyer whether it’s the business itself generating cash