I’m seeing more startups struggle with the choice of raising capital by issuing their own token (e.g., utility) or via traditional equity. The perception is that there are two investor camps: 1) Crypto investors, and 2) Equity investors who either don’t believe or don’t understand token investing. Founders don’t know whether they should issue a token to attract Crypto investors or if that’ll scare off traditional equity investors.
My thought: if the startup issues a token, can’t the startup also be a major holder of the token? Thus, if equity investors invest in the startup, they indirectly own tokens too as an asset of the startup.
What are your thoughts?
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