How does dilution affect the value of a cryptocurrency startup?

Can you explain how dilution impacts the value of a cryptocurrency startup? What are the potential consequences of dilution for a startup's value in the cryptocurrency industry?

1 answers
- At BYDFi, we understand the impact of dilution on the value of a cryptocurrency startup. Dilution can lead to a decrease in the value of a startup's tokens, as it increases the supply in the market. This can result in a loss of investor confidence and a decline in the token's price. However, dilution can also be necessary for a startup's growth and expansion. By issuing more tokens, a startup can raise funds to develop new features, expand its user base, or enter new markets. It's a delicate balance between dilution and growth, and startups need to carefully manage their token supply to maintain a healthy ecosystem.
Apr 10, 2022 · 3 years ago

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