What is the difference between face value and par value in the context of cryptocurrency?

1 answers

• Mar 31, 2022 · 3 years ago
  The difference between face value and par value in the context of cryptocurrency is quite simple. Face value is the value assigned to a cryptocurrency token by its issuer, whereas par value is the minimum price at which the token can be issued or traded. While face value is determined by the issuer and remains fixed, par value can vary based on market conditions. It's important to understand that face value and par value may not always be the same, especially if the market value of the token deviates significantly from its initial value. In summary, face value represents the nominal value of a token, while par value is the minimum price at which it can be traded.
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