Why do digital currency companies choose to issue stocks instead of other forms of fundraising?

5 answers

• Dec 17, 2021 · 3 years ago
  One reason why digital currency companies choose to issue stocks instead of other forms of fundraising is because it allows them to raise capital without diluting their ownership. By issuing stocks, these companies can sell a portion of their ownership to investors in exchange for funds, without giving up complete control of their company. This is especially important in the highly competitive and rapidly evolving digital currency industry, where companies need to maintain a certain level of control to stay ahead of the curve.
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• Dec 17, 2021 · 3 years ago
  Another reason is that issuing stocks provides digital currency companies with a more stable and predictable source of funding. Unlike other forms of fundraising, such as ICOs (Initial Coin Offerings) or token sales, stocks are regulated by securities laws and offer more transparency and accountability. This can attract institutional investors and traditional financial institutions, who may be hesitant to invest in digital currencies due to their volatile nature. By issuing stocks, digital currency companies can tap into a larger pool of potential investors and gain credibility in the market.
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• Dec 17, 2021 · 3 years ago
  From BYDFi's perspective, we believe that issuing stocks instead of other forms of fundraising allows digital currency companies to align their interests with those of their investors. By giving investors a stake in the company through stocks, these companies are incentivized to prioritize long-term growth and success, rather than short-term gains. This can help build trust and foster a strong investor community, which is crucial for the sustainable development of the digital currency ecosystem.
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• Dec 17, 2021 · 3 years ago
  In addition, issuing stocks can also provide digital currency companies with access to additional resources and expertise. When investors buy stocks, they not only provide capital but also bring their knowledge, experience, and network to the table. This can be invaluable for digital currency companies, especially startups, as they navigate the complex and rapidly changing landscape of the industry. By leveraging the expertise of their investors, these companies can accelerate their growth and increase their chances of success.
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• Dec 17, 2021 · 3 years ago
  Overall, there are several reasons why digital currency companies choose to issue stocks instead of other forms of fundraising. It allows them to maintain control, provides a stable source of funding, aligns interests with investors, and offers access to additional resources and expertise. However, it's important to note that the choice of fundraising method ultimately depends on the specific goals and circumstances of each company.
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