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Could they dilute people like that? From 5% to 0.5%? That dilutes everyone else as well though, right (I guess the new shares can be given to the founders so th
by hellocs1 7y ago
Could they dilute people like that? From 5% to 0.5%? That dilutes everyone else as well though, right (I guess the new shares can be given to the founders so they aren't diluted).
- quaquaqua1 7y agoExactly, yes. Founders can give themselves 1,000,000 shares to prevent dilution while giving previous equity holders 0. It's quite an interesting deception if it isn't explained transparently!