Re:Tell me why my Crypto Startup idea won't work
by minasmarios on Wednesday April 21, 2021 @08:13AM
(#26888566)
The idea is just that. Create a Nasdaq for early private tech startups - fixed valuations - funded with crypto.
For the Investors I think there is no problem with SEC, but for the fundable startups what could be a workaround?
2. In a real stock exchange, the company value is largely the volatile thing. In one backed with crypto, the price of a company will fluctuate more from the asset you're buying it with than the company's activity itself. If the price of bitcoin goes up, I own the same number of shares but worth fewer bitcoins. That seems like not what folks into crypto care about.
3. If a company puts all of its shares into this, it likely cannot ever ipo. That's going to turn off most investors. I would expect it's an all-in endeavor.
4. Companies accidentally losing their private key for unissued shares sounds like a very bad failure mode.