According to Compounding Quality, evaluating corporate governance is critical for traders, focusing on whether insiders receive special privileges and if management has significant equity exposure. Verified data shows that companies with strong insider alignment and transparent governance typically instill greater trader confidence, leading to reduced volatility and more sustainable token valuations. Conversely, when insiders benefit from special privileges, it often signals potential risks and can trigger negative sentiment, impacting both stock and related crypto assets through market spillover effects (source: Compounding Quality on Twitter, May 17, 2025).