Quote from: pelufre on June 08, 2018, 01:55:23 AM

Quote from: Ty13rDerden on June 08, 2018, 01:39:56 AM

Quote from: johnjay3000 on June 08, 2018, 01:37:20 AM

Quote from: mekanical on June 08, 2018, 01:35:02 AM

What is the legal difference between advisor equity in a startup and taking tokens for advising an ICO?

ICO allocation - You have the rights to a set of digital hashes, that will hopefully rise in value on a coin exchange. You own no equity or voting rights. There is no fiduciary duty to investors, unless mandated by country of incorporation (eg: company can shut down and walk away with the money and you can do nothing, in several cases). Many startups are looking at ICOs to quickly raise funds to avoid the loss of equity and reduce fiduciary liability.

In addition, Coin value is not linked to the performance of the company, but to the perceived value the coin my provide to investors. So the Company may be successfully bought out by another company or even IPOd, but that does not link it to the rise in the Coin Value. Coin value can grow through market hype or perception with no link to company capability.

Hope that helps. Not sure if I explained it well. PM me if you want to discuss more. Kiss

Many thanks!!

Thanks a lot