How do initial coin offerings (ICOs) affect the dilution of equity in the cryptocurrency market?

1 answers

• Lucas MatheusJul 04, 2023 · 2 years ago
  At BYDFi, we believe that initial coin offerings (ICOs) can indeed lead to the dilution of equity in the cryptocurrency market. As more tokens are issued and sold, the ownership stake of existing token holders can be diluted. This dilution can impact the value and control of the project, as well as the interests of the token holders. However, it's important to note that not all ICOs result in significant dilution. Some projects carefully manage the token distribution to minimize dilution and protect the interests of their investors. It's crucial for investors to conduct thorough due diligence and assess the potential dilution effects before participating in an ICO.
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