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Penny stock is a utility token representing governance in a company as well as the privilege of taking its profits — much like crypto governance tokens are.
by selestify 6y ago
Penny stock is a utility token representing governance in a company as well as the privilege of taking its profits — much like crypto governance tokens are.
- space_rock 6y agoWrong. Utility token gives you no equity. It's a gift card voucher to use a network
- selestify 6y agoAh, my bad. I didn't realize those were different from governance tokens, which are more directly analogous to stock. That being said, just because something is commonly used for fraud doesn't make it illegitimate. There are fraudulent companies in real life, though usually there's more legal recourse to go after them.
- space_rock 6y agoGovernance tokens I haven't seen so much. Don't believe they are sold as or the same as equity in a company. How they are different from equity could be very important to their value as an investment
- space_rock 6y agoAll are fraudulent from the 20 or so I've looked into or talked to the founders and realised they were criminals
- hanniabu 6y agoSounds like you either have a horrible method of finding projects to approach or, given your comments here, no matter how legit a project was you'd still think it's a scam due to cognitive dissonance.
- hanniabu 6y agoSome tokens distribute usage fees to token owners.
- space_rock 6y agoThe ICO scammer often markets the tokens as equity or money but they are gift cards to use the network