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Shares have dividend, control (voting), information and litigation rights in a company. Tokens often have dividend (through staking and different risk taking m
by miohtama 5y ago
Shares have dividend, control (voting), information and litigation rights in a company.
Tokens often have dividend (through staking and different risk taking model than shares) and voting rights. You have way less legal protection.
Because the system, e.g. Solana, is decentralised and all information is public (in the optimal case), there is less need for information and litigation rights. All market participants can have, more of less, the same information.
- whatshisface 5y ago>All market participants can have, more of less, the same information. Most of the information related to the value of a share is part of the "real world" and has nothing to do with who owns how much of what.
- Grustaf 5y agoThere are traditional financial instruments that can achieve these things, like debt. ICOs aren't really like raising equity, it's more like buying coupons for a service before it exists, in the hope that the service will be extremely popular so that the value of the coupons skyrockets.
- miohtama 5y agoThis is no longer true, as for example decentralised finance assets like Aave pay dividend for stakers. You can model them with discounted cash flow and similar tools you would do for equity.
- Grustaf 5y agoSure, there exists crypto debt and crypto equity, but the innovation with ICOs was really the “coupon economy” I think. And isn’t that still the vast majority of the usage?