Crypto Startup successful? Will they convert to shares?

Beerwizzard

full member

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Quote from: Hydrogen on September 25, 2017, 10:36:45 AM

If a small startup is successful, the most likely scenario is owners selling their business for a much larger sum of money than they invested to initially found their startup.

I don't think it could be applied to crypto sstartups. Normal startups sell themselves mostly because of the lack of financing or lack of experienced management that could provide the further developement. But on ICO crypto startups already gather millions for a kick-start and most of them have different advisers or their CEO are coming from major companies. Avoiding IPO is real for most of them.

Hydrogen

legendary

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If a small startup is successful, the most likely scenario is owners selling their business for a much larger sum of money than they invested to initially found their startup.

Few do what snapchat did and file for a stock market IPO (initial public offering).

Converting a business to shares means giving up leadership and having others take over some of the decision making process. Those who buy shares are entitled to have a certain degree of influence & decision making in how a company is run. While there is money in IPO's there are also disadvantages.

Lampaster

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I do not believe that the proposal to convert into shares of the cryptocurrency will have success. The yield from the stock will always be lower than the speculative profit from trading on the exchange. I wouldn't invest in such startups.

Yuhee

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Merit: 250

Quote from: Gotottack on September 24, 2017, 12:30:25 PM

Quote from: PPleaseman on September 07, 2017, 07:47:27 AM

Hi

What if a crypto Startup is very successful in the next years?
Will they keep the tokens/coins, will they change to shares or will the do both?
Or is thinking about stocks old economy and cryptos is the new thing

Is their some material i can read about?

Cheers

It really depends on the project. They actually declare it at the start of the project so you should already know and you do not need to wait for it to become successful (or not). Usually that is hope startups now go, they usually go with ICOs now and fund their project that way.

Stocks usually is not an option for any crypto startup because that would mean you would submit yourself to being centralized again.

Sometimes also the dev team must have good plan in using whatever things they could come up and limiting available funds and recources. It could make good relationship in gaining better chances on funds they could come up with in the blockchain. There is a high chance also of having btc to improve over the years. Most coins started as an ICO but they not all are really successful and just one of the reasons why many people are against btc because of possible scams.

Ctn

sr. member

Activity: 644

Merit: 259

They will usually keep it on the exchanger as coins and it identifies the project and can be helpful to raise the funds again if needed. They will have this strategy even after launching of the product because they know once the product is reality their coin will get the more value, people will invest more money and they will have more capital to run the business smoothly. Yeah, things like that happens all the time and many projects end up like this only.

Reez

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Most of them should just buy and hold bitcoins as they are wasting their time when they will just get disintermediated as that is what happens on the Bitcoin network.

Gotottack

hero member

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Merit: 506

Quote from: PPleaseman on September 07, 2017, 07:47:27 AM

Hi

What if a crypto Startup is very successful in the next years?
Will they keep the tokens/coins, will they change to shares or will the do both?
Or is thinking about stocks old economy and cryptos is the new thing

Is their some material i can read about?

Cheers

It really depends on the project. They actually declare it at the start of the project so you should already know and you do not need to wait for it to become successful (or not). Usually that is hope startups now go, they usually go with ICOs now and fund their project that way.

Stocks usually is not an option for any crypto startup because that would mean you would submit yourself to being centralized again.

oreits11

full member

Activity: 168

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as developer works with decision as expending use with the limit on risks and the resource, those gains with the better on chance as mutualizing the finance on funding with the occupation of blockchain system as the customs of the decentralized on field as the manage of administration/moderation as the framework with the following of the design template to helps with the details of arrange of transaction.

PPleaseman

full member

Activity: 280

Merit: 100

Hi

What if a crypto Startup is very successful in the next years?
Will they keep the tokens/coins, will they change to shares or will the do both?
Or is thinking about stocks old economy and cryptos is the new thing

Is their some material i can read about?

Cheers

Topic: Crypto Startup successful? Will they convert to shares? (Read 313 times)