Wall Street Journal
A token-based fundraising structure offers few protections for investors according to F. Dario de Martino in the Wall Street Journal article “More Crypto Deals Come With Twist—Equity.”
“They have a right to receive future tokens if they exist. There’s no guarantee that the tokens will ever exist,” he said.
As a result, as new startups get launched, many are including the possibility of token issuance into their funding structures so investors can ensure they have some sort of control over a potential token sale in the future according to Joshua Ashley Klayman.
“Investors do not want to be surprised that the company they invested in does not include them in a token sale,” she said.