What strategies can cryptocurrency companies use to minimize the effects of original issue discount?

3 answers

• Nov 23, 2021 · 3 years ago
  One strategy that cryptocurrency companies can use to minimize the effects of original issue discount is to carefully plan their token distribution. By strategically allocating tokens to different stakeholders, such as early investors, team members, and advisors, companies can ensure that the discounts are distributed in a way that minimizes the impact on the overall token value. Additionally, companies can consider implementing lock-up periods for certain stakeholders, which can help prevent a sudden influx of discounted tokens into the market and maintain a more stable token price.
  590295
• Nov 23, 2021 · 3 years ago
  Another strategy is to focus on building a strong and engaged community. By fostering a loyal user base and creating a sense of exclusivity around the token, companies can reduce the likelihood of token holders selling their discounted tokens immediately after the initial offering. This can help maintain a more stable token price and minimize the impact of the original issue discount.
  387129
• Nov 23, 2021 · 3 years ago
  At BYDFi, we believe that transparency is key in minimizing the effects of original issue discount. By providing clear and comprehensive information about the token sale process, including the discount structure and the reasons behind it, companies can build trust with potential investors and reduce the perception of unfairness. This can help mitigate the negative impact of the original issue discount on the token's value and overall market perception.
  456114