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There 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
by Grustaf 5y ago
There 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?