@blockshine, it appears that a new form capital is born.
Besides debt capital and equity capital, now listed companies have another choice to raise capital, which is neither debt nor equity - the LCO capital.
From the perspective of a listed company, the company doesn't have the burden of a debt (the token holders are not lenders) or the traditional responsibility to its shareholders (the token holders are not shareholders).
If a token holder has concerns about the management of the company, he cannot attend the shareholders meeting to voice his concerns.
However, I predict that in the future, these developments may eventually lead to amendments to the Company Acts of the respective jurisdictions to provide better safeguards to the token holders. Who knows, the legislators may even create a third type of shares, besides the ordinary shares and preferential shares, calling it, say, crypto shares!
Alternatively, in future, you may even see companies treating token holders as lenders and providing security to them in the form of debentures! These token holders will then get a fixed interest against their loan secured by the debenture whilst being able to participate in the token economy.
Don't get me wrong. I am not saying that LCOs are bad. They are certainly better than ICOs. I am just brainstorming to predict the future possibilities.
However, I predict that in the future, these developments may eventually lead to amendments to the Company Acts of the respective jurisdictions to provide better safeguards to the token holders.
Wow. I've lost you here. To smart for my little brain :)
@blockshine, it appears that a new form capital is born.
Besides debt capital and equity capital, now listed companies have another choice to raise capital, which is neither debt nor equity - the LCO capital.
From the perspective of a listed company, the company doesn't have the burden of a debt (the token holders are not lenders) or the traditional responsibility to its shareholders (the token holders are not shareholders).
If a token holder has concerns about the management of the company, he cannot attend the shareholders meeting to voice his concerns.
However, I predict that in the future, these developments may eventually lead to amendments to the Company Acts of the respective jurisdictions to provide better safeguards to the token holders. Who knows, the legislators may even create a third type of shares, besides the ordinary shares and preferential shares, calling it, say, crypto shares!
Alternatively, in future, you may even see companies treating token holders as lenders and providing security to them in the form of debentures! These token holders will then get a fixed interest against their loan secured by the debenture whilst being able to participate in the token economy.
Don't get me wrong. I am not saying that LCOs are bad. They are certainly better than ICOs. I am just brainstorming to predict the future possibilities.
cc @crypto.piotr, @reverseacid @julianhorack
Dear @devann
Yet another amazing comment buddy.
Wow. I've lost you here. To smart for my little brain :)
Yours
Piotr
.