The startups who are creating market places where they use their token for services, could in fact replace the means of investing in equity? The reason, while the business increases their customer base and profits, the token also increases in value. And with the token, you can liquidate anytime, unlike equity. The only value equity has now would be ownership. Unless you have a buyer who wants control of the company, I see it difficult to actually sell equity when the token is there. Let me know your thoughts. Cheers.
I agree with this line of reasoning when it comes to transfer of equity in the business but a deeper look also will mean equity could also be sold because the highest number of tokens represent the one who owns the control which is equity as well. So, if tokens are readily converted, so also my equity because if I want out, all I need to do is to sell all the tokens allocated to me and that's all l, while I still retain my job as probably COO or manager, I already lost ownership.