equity tokens will be popular form of ICO just after government regulators will allow that =) sorry
good news - it will be more hype as it will allow any coffee shop go public world wide instantly - and this is the true decentralization. That will be a good chance for small business and individual entrepreneurs. It will attract more money to crypto and will make it more popular.
Topic: Tokens Vs. Equity - page 2. (Read 780 times)
You are right. The introduction of the idea of an Initial Coin Offering (ICO) is not anymore an equity-based but on the idea of a token resulting into not categorizing them as securities. And we have an eager market for ICO these days...though I find it somewhat uncomfortable that some of these ICOs can just be pretentious and not really serious of what they are offering.
The startups who are creating market places where they use their token for services, could in fact replace the means of investing in equity? The reason, while the business increases their customer base and profits, the token also increases in value. And with the token, you can liquidate anytime, unlike equity. The only value equity has now would be ownership. Unless you have a buyer who wants control of the company, I see it difficult to actually sell equity when the token is there. Let me know your thoughts. Cheers.
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