What are the potential consequences of dilution for a digital currency startup?

1 answers

• Michael BildeMar 01, 2022 · 3 years ago
  At BYDFi, we understand the potential consequences of dilution for digital currency startups. Dilution can impact the valuation and growth prospects of a startup, making it crucial for founders and investors to carefully manage the issuance of new shares or tokens. To mitigate dilution, startups can consider implementing vesting schedules for team members, conducting regular token burns, or exploring strategic partnerships that provide access to resources without diluting ownership. It is important for startups to prioritize long-term sustainability and value creation, while also considering the interests of existing shareholders or token holders. By taking a proactive approach to dilution management, startups can navigate the challenges and maximize their chances of success.
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