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This is not really true. Once a company exceeds a certain threshold of non-accredited owners, it automatically becomes a public company, and faces the same disc
by scott00 9y ago
This is not really true. Once a company exceeds a certain threshold of non-accredited owners, it automatically becomes a public company, and faces the same disclosure and controls requirements as a company that became public via IPO. That is why all competently written private stock offerings sell stock with heavy transfer restrictions, so that shareholders can't force management to take the company public.
- vasilipupkin 9y agoYes, but token buyers are not owners, presumably
- scott00 9y agoThe analogy is necessarily inexact,ICOs are a new beast. But they don't have to be owners. Too many bond holders can make you public as well. If the tokens are securities and the sponsor/inventor/whatever is considered the issuer, lots of token holders is a problem for the issuer.