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It’s pretty cheap common for crypto startups to incorporate as a Delaware corp. Then when you launch the protocol or token you establish a Caymans/BVI/Swiss fou
by dcolkitt 4y ago
It’s pretty cheap common for crypto startups to incorporate as a Delaware corp. Then when you launch the protocol or token you establish a Caymans/BVI/Swiss foundation.
The Delaware corp acts as a service provider to the offshore foundation. The DAO and it’s treasury are directly tied to the BVI foundation.
The advantage of this is that if the equity ends up having value in addition to the token, then you have a nice Delaware corp to wrap that equity value in.
- yowlingcat 4y agoI've seen similarly flavored incorporation structures with crypto hedge funds, where there's a management firm LLC incorporated onshore, and a holdco offshore where any of the funds flow is happening -- the advantage there being that one can trade on any of the major exchanges without being tied to US regs. Very interesting to see similar structures with crypto startups as they launch protocols/foundation tokens. I guess the commonalities have to do with the treasury aspects, right?
- cyanydeez 4y agoThe fraud aspect.