Thanks for this summary. Curious how a startup that’s issued an ICO might be acquired down the road. Does the would-be acquirer — a publicly held entity trading on the NASDAQ, for example — simply make a tender offer to the holders of that coin, and essentially convert the ownership structure to equity?
Also, if I understand correctly, if the startup finds itself needing additional capital, would it simply sell more of the coin — presumably from its stockpile of unissued coins, obviously diluting existing coin holders (as secondary offers dilute shareholders in the equity markets)?
Lastly, since coin holders don’t have an equity / ownership stake in the company, I wonder how a raise is represented in the financial statements -i.e., balance sheet. Debit cash, credit ______?
Cheers.
