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How do advisory shares differ from equity in the world of cryptocurrency?

avatarKelvin DurantNov 23, 2021 · 3 years ago3 answers

Can you explain the differences between advisory shares and equity in the world of cryptocurrency? What are the unique characteristics of advisory shares and how do they differ from traditional equity?

How do advisory shares differ from equity in the world of cryptocurrency?

3 answers

  • avatarNov 23, 2021 · 3 years ago
    Advisory shares and equity are two different concepts in the world of cryptocurrency. Advisory shares are typically given to advisors or consultants who provide expertise or guidance to a cryptocurrency project. These shares do not represent ownership in the project or any voting rights. Instead, they are a form of compensation for the advisory services provided. On the other hand, equity in cryptocurrency refers to ownership or shares in a project. Equity holders have voting rights and may be entitled to a portion of the project's profits or assets. Unlike advisory shares, equity represents a stake in the project and can have a direct impact on decision-making.
  • avatarNov 23, 2021 · 3 years ago
    When it comes to advisory shares in the world of cryptocurrency, they are often given to individuals who offer valuable advice or industry expertise to a project. These individuals may not necessarily have a financial stake in the project, but their advice can be crucial for its success. Advisory shares are a way to compensate these advisors for their contributions without giving them ownership or voting rights. On the other hand, equity in cryptocurrency represents ownership in a project and comes with voting rights and potential financial benefits. It is important to understand the differences between advisory shares and equity when evaluating the involvement and compensation of individuals in cryptocurrency projects.
  • avatarNov 23, 2021 · 3 years ago
    Advisory shares and equity in the world of cryptocurrency have distinct characteristics. Advisory shares are typically given to advisors who provide guidance and expertise to a project, while equity represents ownership in the project. Advisory shares do not grant voting rights or ownership, but they serve as a form of compensation for the advisory services rendered. Equity, on the other hand, grants voting rights and a potential share of the project's profits or assets. It is important to note that the specifics of advisory shares and equity can vary between different cryptocurrency projects and should be evaluated on a case-by-case basis.