What is the difference between face value and par value in the context of cryptocurrencies?

1 answers

• Kasia WicherJan 27, 2024 · 2 years ago
  Face value and par value are two distinct terms in the context of cryptocurrencies. Face value refers to the nominal value assigned to a cryptocurrency token, which is usually determined by the issuer. It represents the initial value of the token when it is first created. Par value, on the other hand, is the minimum price at which the token can be sold or redeemed. It is often set by the issuer and can be different from the face value. Par value acts as a reference point for trading and can help establish a baseline price for the token. It's worth noting that not all cryptocurrencies have a par value, as it is not a universal requirement in the industry. So, while face value represents the initial value, par value sets a minimum price for the token.
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